Is ROI Dead?

Mike Campbell
Ninah Consulting

Tim Ambler argued in last September's Admap that ROI measurement of advertising effects is 'flawed, abused and misunderstood'.

The fundamental issue is that the true value of advertising is difficult to quantify and the effects that can be quantified do not usually 'cut it' in the eyes of the finance director. There is a critical issue of credibility for the advertising-evaluation industry. The marketing press is laden with comment about the failure of marketing directors to reach the boardroom. The reason most often cited is that  marketers are not financially literate. This comes across strongly in Ambler's article, which stresses the lack of understanding among marketers of the definition of ROI. I would like to add to that discussion, to highlight the problems in proving the value of advertising and to recommend a way forward.