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How to Use a Marketing ROI Analysis to State Your Case

Marketing ROI Analysis

Digested from Harvard Business Review

Performing an analysis of your marketing spend can help you track performance and justify expenditures to upper management.

In 2019, global spending on media is expected to reach $2.1 trillion. But just because companies budget a lot of money for media does not mean they are using it effectively. 

Harvard Business Review’s Amy Gallo talks with Jill Avery, a senior lecturer at Harvard Business School, to learn how companies measure marketing ROI. The benefits of marketing ROI can help firms justify marketing spend, decide what to spend on, compare marketing efficiency with competitors and hold themselves accountable.

“Measuring how efficiently the marketing organization is using the company’s money keeps everyone accountable for using those funds wisely,” Gallo writes

But a deeper dive into marketing expenditures can also yield concerns for marketing managers. It can be easy to underestimate marketing’s long-term benefits. Avery tells Gallo that it is important to remember that every dollar a company spends to build a brand will be an asset in the future.

“So, ideally your marketing program is not only affecting sales and profits this year but also strengthening your brand equity and customer relationships over time,” Gallo writes.

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