Let’s get real about ROI

Return on investment (ROI) has been an integral part of marketing decision making since marketing began (and probably even before.) Any new product or service goes through rigorous research and testing before it is launched. Many metrics come into play; cost, timing, market demand, competitors, profit margins, implementation, IT systems, staff training. The number crunchers know what they are doing and turn out a fairly accurate estimate on ROI.

How do you quantify creativity?

But increasingly creative agencies are being asked to contribute their estimated ROI – and that’s where it gets a little tricky. Now, we’re more than happy to provide as much cost information as needed – but how exactly do you quantify creativity? Any campaign, message, visual direction or imagery is based on a comprehensive understanding of the client’s brief, market, brand values and goals. We ask the right questions to ensure we understand the timing and implications of a product launch or campaign. We dig deep into our clients’ needs and expectations and all of our knowledge and expertise is reflected in our creative output. Great – but can that really be translated into a meaningful ROI figure?

Any campaign, message, visual direction or imagery is based on a comprehensive understanding of the client’s brief

Do you suffer from Metric-lust?

Design company, Forty calls this desire for data at all costs metric-lust. Their argument is that agencies that fall in love with this numbers-driven approach are doing their clients a disservice – marketing is about emotions, feelings, aspirations. If you adopt a creative approach that is based purely on driving up the numbers you are failing to take into account the one aspect that drives all purchase decisions – human psychology

Yes, marketing is a cost that can be factored into all ROI calculations. But design and creativity based on insight, understanding and intuition is invaluable. Let’s face it, we can all play the numbers game – but having the highest score doesn’t necessarily make you the winner. The next time you ask a creative agency for their ROI, listen hard to what they say and how they explain their goals– and then talk to those agencies that said nothing. You might be surprised.