What is ROI?

Return on Investment (ROI) has become a central element of almost all aspects of marketing, but while it has bought the industry closer to the sort of analysis used to make a variety of other strategic business decisions, it is not as clear cut a measurement tool as it may first appear.

What is ROI?

Andrew GreenZenithOptimedia

BACKGROUND

The quest for ROI – Return on Investment – is close to the hearts of CEOs and Finance Directors, who want to treat marketing just like other capital investment projects.

They know, for example, that $100,000 invested in a new truck or factory will deliver very specific incremental revenues for a given cost. This, combined with an estimate of the life of the investment, will give them a clear handle on whether or not the investment is likely to pay back over both the short and long-term.

It is not quite so clear-cut...

Not a subscriber?

Schedule your live demo with our team today

WARC helps you to plan, create and deliver more effective marketing

  • Prove your case and back-up your idea

  • Get expert guidance on strategic challenges

  • Tackle current and emerging marketing themes

We’re long-term subscribers to WARC and it’s a tool we use extensively. We use it to source case studies and best practice for the purposes of internal training, as well as for putting persuasive cases to clients. In compiling a recent case for long-term, sustained investment in brand, we were able to support key marketing principles with numerous case studies sourced from WARC. It helped bring what could have been a relatively dry deck to life with recognisable brand successes from across a broad number of categories. It’s incredibly efficient to have such a wealth of insight in one place.

Insights Team
Bray Leino

You’re in good company

We work with 80% of Forbes' most valuable brands* and 80% of the world's top top-of-the-class agencies.

* Top 10 brands