Andy on Twitter

  • Publicis prioritizing investment is super smart. Nothing to be gained from investing in Cannes. Way over priced ,
  • Cannes this year is both shallow and disappointing. Some ok content but overly commercial and no CMO agenda ,
  • Shares in Cannes Lions' owner fall as Publicis pulls out and WPP voices doubts ,
  • All marketing arcs lead to membership. @Cannes_Lions,
  • Sharing = currency of communications. The system (social media) carries the currency and enables transactions . @Cannes_Lions,
  • Better never stops @Cannes_Lions,
  • Love the power of great brands + great artists + great institutions being drawn together by the artist ,
  • Yup ,
  • Unification of Unilever marketing org means better control over assets - less duplication/volume and more localization @Cannes_Lions,
  • Keith makes a fair point on reach - is about reaching those you haven't reached. @Cannes_Lions,
  • Creativity is last source of competitive advantage. Maybe... ,
  • Unstereotyped ads perform 25% better. a convenient number? but just the same a powerful point if even 5% better. @keithweed,
  • Brand safety and suitability go hand in hand. Some progress made but way to go. @keithweed,
  • Time to tackle the bots. Rip the ad fraud out. No such thing as cheap media. @Cannes_Lions,
  • Must count 100% of pixels as a view. Not 50% and not less. Need for 3rd party verification @Cannes_Lions,
  • Loved

ROI Is Often the Wrong Metric

To my comments today at the Adobe Marketing Symposium, ROI is a useful metric for incremental and one-off investments.

But as digital becomes ingrained in the fabric of our channels, we need business cases that better reflect the place digital has as an element of the P&L. In this respect, return on marginal investment (ROMI) might be a better starting point. Here is a good summary, in the context of marketing:

And it’s also critical to know that maximum ROI does not necessarily produce maximum profit. Oops!  Blame the Law of Diminishing Returns. Many marketers might think that the highest ROI corresponds to the best spending level. Unfortunately, that’s not so. For example, should you stop spending when ROI drops, even if you continue to produce bigger profits? Most likely not. The point at which you’d stop or make a change depends on the return of the last incremental amount spent, not the overall ROI.

This is also what’s known as “return on marginal investment” – or ROMI.  And “marginal” return vs. an average is what makes all the difference for accurately interpreting results and making decisions on future spending. So if you must use a return measure to gauge marketing effectiveness, use ROMI.

Trading off digital investments against investments in other channels is also limiting. Digital needs to permeate every channel and customer touch-point.

Same is true of marketing, making this read even more important. Marketshare, of which Dominique Hanssens is a founder, is rewriting the marketing playbooks by focus on this crucial issue. Here he is chatting about the issues – I like his comments on touchpoints:

Speak Up — Add Your Thoughts

Connections

  • Loved
How did you connect?   [?]
Indulgences-Coffee