Thursday, December 04, 2008

ROMI White Paper

By Andy Hasselwander

Over the past few months I've worked with a colleague of mine, Alex Aldag, who used to be at Channel Economics and is now a Principal in the analytics group at MB, to write a pretty interesting white paper on the challenges of measuring ROMI in a B2B environment. There's some good data we've gathered from a bunch of industries in there. You can reach it here after registering.

Some Outtakes:

On Return on ROMI:
  • "Given increasing financial pressures, it is likely that senior executives will continue to be more and more critical of corporate spending. Marketing budgets are frequently perceived to be more discretionary and less directly tied to firm performance. As marketing mix shifts, it will be increasingly critical to adapt measurement and reporting practices to account for new stimuli put into market. Nearly 80% of firms that employ ROMI measurement today assess their marketing performance as somewhat to highly effective, compared to only 42% of firms that do not measure ROMI." (TNS Media Intelligence; TNS Media Intelligence Reports U.S. Advertising Expenditures Declined 1.6 Percent in First Half 2008; 9/24/2008)
  • "Nearly 80% of firms that employ ROMI measurement today assess their marketing performance as somewhat to highly effective, compared to only 42% of firms that do not measure ROMI" (Lenskold Group; 2008 Marketing ROI & Measurements Study; 2008.)
On Econometric / Atomic Data Sources:

  • Just over half (54%) of companies have access to aggregated sales reports at a weekly or daily level. Even fewer (33%) have access to marketing spend data at a weekly or daily level. Data issues generally require the analysis to leverage proxies and a variety of aggregated data forms. (Lenskold Group; 2008 Marketing ROI & Measurements Study; 2008.)
There's a lot more in the paper. For those of you curious about the Lenskold group and quotes, here's Jim Lenskold's site: http://www.lenskold.com/

1 comment:

Chris Herbert, B2B Specialist said...

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