ROI: The Million Dollar Question
I tell my public relations students that if they want to become millionaires, all they need to do is figure out one big communications “challenge:” return on investment (ROI). The common perception is that since public relations cannot figure out a reasonable and understandable method for proving its ROI value, then all the hardnosed businesspeople won’t take the profession seriously. On the other hand, marketing is supposed to have a leg up on PR because it has done a better job of measuring itself monetarily.
Think again…
The Adweek article “Marketers Bemoan Intra-Accountability” by Aaron Baar points out the difficulties marketers have in proving ROI to their organizational counterparts, according to the Association of National Advertisers’ fourth annual accountability study.
Here are some high/lowlights:
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48% noted poor organizational response to marketing ROI data
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42% hold dissatisfaction with measurement systems
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45% said they were frustrated with a lack of ROI definition
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22% indicated “full” cooperation between marketing and finance departments
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55% said their marketing ROI goals were in line with their company’s corporate goals
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51% divulged that there were no written goals for marketing ROI
For the public relations professional perspective on measurement, see the Bulldog Reporter article, which runs excerpts from a number of agency leaders.
For public relations, marketing, or other “communications” professionals, regardless of the umbrella term used to describe their jobs, the ROI challenge presents a fantastic opportunity to work with their brethren in academe.