How Do You Spell ROI?
Member Survey of Association of National Advertisers on meaning of ROI
(multiple responses allowed)
- 66 percent Incremental sales revenue generated by marketing activities
- 57 percent Changes in brand awareness
- 55 percent Total sales revenue generated by marketing activities
- 55 percent Changes in purchase intention
- 51 percent Changes in attitudes toward the brand
- 49 percent Changes in market share
- 40 percent Number of leads generated
- 34 percent Ratio of advertising costs to sales revenue
- 34 percent Cost per lead generated
- 30 percent Reach and frequency achieved
- 25 percent Gross rating points delivered
- 23 percent Cost per sale generated
- 21 percent Post-buy analysis comparing media plan to actual media delivery
- 19 percent Changes in the financial value of brand equity
- 17 percent Increase in customer lifetime value
- 6 percent Other/none of the above
While I couldn't find an update of this study, clarity around the definition doesn't seem to have improved in the last 10 years, given the results of The Fournaise Group survey. And the increased emphasis on digital and social media marketing in the last 10 years has probably made it worse. The Fournaise Group found that 69 percent of B-to-C CEOs believe B-to-C marketers now live too much in their creative and social media bubbles and focus too much on parameters such as "likes," "tweets," "feeds" or "followers."
It's time for marketers to stop using ROI as a buzzword for any marketing metric. You can't measure and improve something if you don't clearly define it.