Marketingroicnen

IS YOUR MARKETING INVESTMENT DELIVERING EXPECTED RETURNS?

October 2009

你的市场营销投资 获得预期回报了吗？

2009年10月

Is your marketing investment delivering expected returns? Just ask Nielsen

by Chang Park, Executive Director, Nielsen Analytic Consulting, Greater China

With consumers increasingly price conscious and competition heating up, marketers would be wise to ensure they are maximizing the return on their advertising spend.

Marketing ROI … - is the measurement of the impact of marketing activity on sales - allows for the ability to estimate expected sales returns based on the size of investment - is fundamental to clearly understand where to increase or decrease advertising investment - provides the ability to produce either greater sales at same cost or maintain parity sales at lesser cost.

Marketing ROI is, on average, about 1.09

Nielsen Analytic Consulting has found through conducting numerous studies worldwide that the average short-term return on marketing investment (sales return within three months of media execution) is 1.09. Of note, the ROI for different marketing tactics varies based on the efficiency that tactic provides.

Global Marketing Return on Investment

Return on Investment (ROI) - Incremental Revenue per $ Spent Short Term ROI Longer Term ROI

Marketing return on investment (ROI) is the amount of sales achieved for every dollar spent on marketing. Measuring this return is important so that investment can be allocated to those marketing activities that maximize sales. With store shelves bulging with brands vying for shoppers’ attention and markets slowing globally, understanding how to get the most bang for your advertising buck has never been so vital. How to achieve the biggest ‘bang’ will differ across a brand’s portfolio; in other words, the marketing strategy that works for Product A may not be the most efficient strategy for Product B. Each brand and product has a personality and target group that requires a tailored strategy...