What is ROMI and why do I need it
What is ROMI?
ROMI stands for Return On Marketing Invested.
Why is it important?
Well, you wouldn’t invest in the stock market and not measure the results, the same goes for you marketing dollars.
So how do I measure results.
There are so many options for measuring your investment and depending on the amount you are spending you may have access to sophisticated reporting already however if you don’t then you may want to consider the following options that should be available to you (n.b.: we won’t be covering websites on this page as the metrics are a whole other subject )
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Email Marketing
- Dashboards are part of all you major email platforms
- You should be measuring
- Send rates
- Valid emails
- Open rates
- Click through rates
- Unsubscribe Rates
- Benchmarking against your industry is a great starting point however email marketing is a bit like Golf, you need to keep improving your score against yourself.
- TV
- TV is purchased on the following metrics and reporting on these metrics should be provide your media agency
- CPM – cost per thousand
- TARP – Target Audience Rating Point
- Booked versus achieved
- Target Audience
- Spot placement
- There are many ways to buy and these reports mentioned above can help ensure you are achieving your strategy
- So what the best way to measure the results.
- Well you need to have your buying strategy worked out in advance and understand what you are purchasing.
- If you are using a media company to place the advertising you will have access to reports however if you are buying direct then you are most likely not getting what you think you are. Contact us for more information
- TV is purchased on the following metrics and reporting on these metrics should be provide your media agency
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Radio
- Radio is general bought as spots
- Each station will be targeting an audience and will let you know where their listeners fall within demographics
- Typically you would buy a time slot as a preference e.g. BMD – breakfast morning drive time or maybe lunchtime
- Measurement for radio is harder to monitor although given that you will generally buy within a time period you can always listen to the ad.
- The bigger issue is, are you buying the right spots, are you fishing where the fish are.
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Billboards
- Sold on traffic passing buy per lunar cycle
- Whats a lunar cycle?
- its a 4 week period
- How do you measure this
- Obviously driving past the site other wise they will provide Proof of posting
Back to ROMI
These are examples of buying metrics and how you can measure them however you need to then bring this all together and measure the effectiveness of these mediums and thats where ROMI comes into play. These base metrics will be provided to you, which is more of a measurement of what you have paid for however the actual trick is to understand if the media you bought is actually working and this is where ROMI comes into play.
You need to connect you media placement and your internal metrics together to see if you are getting results. These can be sophisticated systems or as simple as good old excel.
Like to know more.. feel free to connect with Probatio to help you understand how we can help.