When it comes to measurement, adopting a mindset of “ROI++” is the best way to create a culture of creative effectiveness, according to Mars global marketing insights director Sorin Patilinet.
Speaking at the Festival of Marketing: The Bottom Line, Patilinet urged marketers not to fall into the trap of reducing spend in order to maximise ROI, or making return on investment part of every conversation.
“To me ROI is very much like table stakes, so when you’re gambling in a casino there is a certain amount of money you need to put in in order to be part of the game,” he explained.
“Having an overall positive ROI allows you to be part of the game, but once you’re there you should focus on things like creative effectiveness and new opportunities in untapped media channels to build a successful plan.”
Henkel marketing director for laundry and home care brands, Nikki Vadera, agreed it is important for marketers to understand ROI’s limitations if they want to avoid the pitfalls.
She explained ROI can be difficult to measure as media spend is now more fragmented than ever due to the expanded number of touch points with consumers. Vadera also argued marketing spend needs to be more “dynamic” and campaigns should be “optimised” as they progress, given that ROI measurements can lag behind by months.
Direct Line Group head of insight and marketing effectiveness, Ann Constantine, agreed marketers should take a holistic view when it comes to investment and argued that while ROI is highly recognised as a financial measure, it should not be used to the exclusion of other metrics.