Return on investment (ROI) has become a key measure for businesses looking to determine the success of their marketing spend. And it can be a “sensible” measure of performance, according to marketing effectiveness consultant Peter Field.
However, there is a risk that by looking at ROI alone, marketers focus on marketing efficiency rather than marketing effectiveness. According to Mark Ritson, speaking in the next instalment of our video series on marketing effectiveness, created in partnership with Thinkbox, a focus on ROI isn’t “for the good of a company” in the long term.
“Campaigns are generally becoming less effective because of a growing focus on ROI,” he says.
Field also cautions against focusing too much on ROI, suggesting it leads marketers to “quick and easy wins” over long-term brand building and business outcomes. “If [ROI] becomes your guiding principle for…