ROI on Marketing- Return on Influence

Technically speaking, marketing ROI refers to the monetary profit that a company generates through its marketing activities. Marketing ROI or ROMI (Return on Marketing investment) is not like other return on Investments because marketing is not the same type of investment. Marketing includes a lot of risks. Marketing funds are typically spent in the current period.

As B2B marketing budgets are growing, companies are focusing more on the returns that it generates. In the 21st century, all the marketers need to understand that ROI does not only stand for Return on investment. It also refers to return on impressions, engagement, objectives and opportunities.

The first component ‘Return on Impression’ can be measured through 2 metrics. Evaluating the number of people who see your ad is one way of measuring the impressions. The second way of measuring the impressions is the perception of consumers. Remember, companies don’t build the brands, consumers do by experience those brands.

The second component ‘Return on Opportunities’ requires you to evaluate the opportunity that a marketing campaign has for you. That means, does the marketing campaign is effective for the business at present against the time, efforts and monetary commitment that it requires. Marketers who can balance the potential opportunity will have a better chance to up the competition.

The third component ‘Return on objectives’ requires you to understand that not all goals are measurable. Some marketing activities help the business to grow and move in the right direction in long-term and cannot be seen in a short span of time. Return on objectives goes together with opportunity and engagement for an integrated marketing plan and better tracking strategy to deliver the best result.

The last and the most important component is ‘Return on Engagement’. It is very critical for your brand as the conversations, sharing and word-of-mouth marketing that happens online or offline can make or break your brand. You cannot quantify the value of positive buzz about your brand, your product, services or your business but the power it has, cannot be doubted.

Together all the components mentioned above can give you a clear picture of how your marketing initiatives are performing. Today, only focusing on return on investment is not enough. You need to focus on all the metrics and use the hard and soft data to measure the ‘Return on Marketing Investment.’

Marketing has been and will continue to be an experiential journey and the above are observations at a personal level. Feedback, views and inputs are welcome at [email protected] ; twitter: @_hemantarora ; https://www.tumblr.com/blog/hemantarora1