Traditional ROMI is dead, long live marketing effectiveness

David Dixon and Sebastian Shapiro

The discipline of ROMI (return on marketing investment) has enjoyed tremendous success over the last five years. It is now in widespread use across companies not just in consumer products but also in industries such as financial services, automotive, communications and technology, and even government agencies.

The appeal of ROMI models is easy to grasp given today's marketing environment. Executives face increasing pressure to drive profitable growth while having to justify investments in driving this growth using the languages of capital budgeting and strategic planning spoken at the chief financial officer's office.