‘ROMO': Better ROI for Marketers
From ROI to 'CTA.'
Several days ago I wrote about the desire for marketers to distill their art down to a science in the crucible of online marketing metrics. In it, I suggested publishers ask questions and flesh out whether your client is really doing the work to analyze the effectiveness of their online marketing or whether they were just using online because it could Cover Their Ass ("CTA") if called upon to prove ROI.
So, now what?
Suggest that there are other metrics beyond ROI that they should consider using. The term I heard a few weeks ago was ROMO, or, Return on Marketing Objective. This has broader application than ROI but it both encourages measurement as well as the idea that strict return on investment may not have to be the ONLY thing one should evaluate. So you can begin to discuss what other sort of marketing objectives one might have and how to measure them. For example, brand awareness and buyer preference–those mysterious forces that make someone click on your Adwords ad instead of a lesser-known company’s.
Why not suggest print (oh there I go again) to raise awareness and preference using a pre-campaign and post-campaign study to measure the improvement? And then analyze changes in click-thrus, click-through rates and conversion rates of online efforts during the campaign (across the same audience–it’s called integrated marketing). Who says you cannot measure this?
We had an account that ran regular e-newsletter sponsorships. In the middle of that two-year run of online advertising, they ran some print: full and half pages, 17 times across a 22-issue span (we are 24 a year). The marketing objective was to try and increase awareness five percentage points. While they were running the print ads, they averaged 155 online leads. During the period before and after the print, they averaged 61 leads. The increase lowered the cost per lead even after factoring in the entire cost of the print advertising. That means the nine point increase in awareness they achieved over the period was in effect free. They achieved both a ROMO and ROI.
That is obviously a showcase example and your mileage may vary. But to summarize, don’t get put off by ROI. Suggest ROMO as an equally valuable metric. And then figure out how to measure that ROMO, with awareness and brand preference studies. You’ll like the ROI.
(Note: My source for the term “ROMO” told me he had heard it from Tech Target–kudos are due to TT, or whoever invented it.)