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Friday, May 20, 2016

3 Reasons You’ll Never Measure Marketing ROI Correctly (and That’s Perfectly Ok)

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3 Reasons You’ll Never Measure Marketing ROI Correctly (and That’s Perfectly Ok)

Today, our business is everywhere — on mobile, across social media and messaging apps, and even exposed to new mediums like connected devices and virtual reality (VR). Marketing remains the same mix of math and magic we know and love, but the ways marketing is executed day-to-day has changed profoundly. Our work has gotten a lot more complicated, and this growing multi-channel complexity makes it harder than ever to cleanly attribute results and marketing return on investment (MROI).

SIMPLE MROI

When a lot of marketers first look at their MROI, the natural reaction is to start by comparing the change in gross profit (sales growth multiplied by gross margin), customer lifetime value (LTV), or another revenue metric, versus the marketing investment that led it.
Marketing ROI Formula
As an illustrative example, if a campaign with a $1 million budget had a $5 million increase in sales that can be attributed to it, and the business has a gross margin of 30%, then the simple MROI formula on that marketing investment could be:
Marketing Optimization ROI
For a “campaign ROI” of 50%. Or, if you kept overall spend the same, but optimized your creative and media investments to increase net sales by 2%, you could look at MROI this way (assuming your business has $100 million in annual sales, gross margin of 30%, and your marketing budget for the year is $10 million):
Marketing ROI Calculation
Here, you capture a simple resource optimization MROI of 6% across your marketing budget.
As we all really know however, it’s rarely that simple. In particular, there are three important factors that need to be carefully understood as a business moves from measuring simple MROI to a more comprehensive MROI.

#1 – ATTRIBUTION REALITY (AND CAUSALITY)

The first MROI hurdle for most brands is clean, clear multi-touch attribution. One particularly acute challenge is the brand and business itself, and the interplay between brand marketing impact (from investments that build and shape long-term market perception) and direct response impact (from investments that generate short-term sales). Direct response campaigns like new product launches, holiday campaigns, and discount promotions may cycle up and down over the course of the year, but they happen against a backdrop of longer-term brand and market share continuity which impacts customer perception and buying behavior. Brands are built up — and sometimes, eroded — over time, and every campaign effectively stands on the shoulders of the work that’s come before it (that said, it’s also important to remember that long-term effects are not simply an accumulation of short-term effects). Similarly, there are few things more complex and hard to understand than human decision-making, but it’s important to recognize most purchasing decisions start with the brand, not the channel or offer.
Then, there’s the causality problem. With different initiatives happening across different channels at the same time, how do you measure a multi-touch customer journey that represents the sum of so many diverse, often difficult-to-measure interactions?
measurable-multi-touch-marketing-attribution-vs-reality
Measurable multi-touch attribution vs. purchasing reality and brand influence.
There are many different methodologies for assigning channel and interaction value via multi-touch attribution. A few common industry models are:
Prefer first – The first ad or customer interaction receives the majority of the attribution credit and each touch further down the path to purchase receives credit in a weighted or rules-based, linearly decaying fashion.
Prefer last – The last ad or customer interaction receives the majority of the attribution credit and each touch earlier in the customer journey receives credit in a weighted or rules-based, linearly decaying fashion.
Equal-weight – Every ad or customer journey action receives equal attribution credit.
U-shaped (barbel) – Here, attribution is segmented by first touch, middle touches, and last touch. First touch might receive 40% attribution, last touch 40% attribution, and the remaining 20% of attribution credit is divided among the middle touches.
Nonetheless, almost any method of attribution will likely oversimplify the story, which is why marketing organizations should approach their media mix like a long-term investment portfolio, similar to the mutual funds many of us invest our 401Ks and retirement accounts in. The analogy is there are a lot of different individual stocks you could invest in (think: different channels, campaigns, and creative directions in marketing), so rather than trying to “pick individual winners,” you should spread your bets across a diversified portfolio, using a sound, well-reasoned investment thesis that tracks its returns across different time horizons. Over time, your winners make up for your poor-performers, and your overall investment delivers a positive annual return.
This isn’t a perfect analogy — after all, ‘indexing’ in a creative profession is a fast path to mediocrity — but it’s clear sustainable MROI comes from actively managing and optimizing a portfolio of campaigns and content beneath a brand system of key messaging anchors. For some businesses, the internal rate of return (IRR) of investing in better long-term marketing capabilities may even prove to be multiples higher than other alternative areas of business investment or capex.    

#2 – TIME

Another challenge is time itself, and the time interval of the ROI analysis. Addressing the time value of money as an input into calculating marketing ROI is outside the scope of this essay, but I do want to briefly talk about the time window your ROI analysis is framed in. In marketing, there is a fundamental difference between being efficient (obtaining high MROI) and being effective (driving maximum profit and long-term shareholder value), and actions that achieve the first need to be balanced against investments that support the second.
In “The Long and Short of It: Balancing Short and Long-Term Marketing Strategies,” one of the most thorough analyses to date on marketing effectiveness over time (done by the IPA across more than 700 brands in over 80 categories), the findings are fairly clear: direct-response marketing investment that focuses on short-term sales growth can — and should — be measured inside a one year timeframe, or even within an individual quarter or season. But brand investment — investment that produces the most growth in long-term market share and profit gains — must be measured on a 2-3+ year timeframe.
Long-term marketing ROI
Measuring the MROI of a brand campaign after, say, three months, is entirely the wrong lens to apply. The same can also be said for a true platform strategy.

#3 – THE RIGHT DENOMINATOR (FOR MARKETING INVESTMENT)

Another reason why a ‘portfolio’ measurement philosophy is particularly helpful for MROI is it looks across all budget categories to account for (1) distribution and working media investment, (2) content production and creative development investment, and (3) people, talent, and other overhead investments. Comprehensive MROI understanding starts when all budget areas are understood as a composite whole across all geographies, brands, channels, etc.
Of course, holistic budget understanding is easier said than done. Although marketing is effectively a business function for manufacturing and distributing communications, most companies lack the analytical rigor to understand the size, speed, and economics of their communications supply chain. One global CPG company worked diligently for eighteen months to complete a first phase of process diagnostics and technology improvements so management could start benchmarking its marketing supply chain. This initial phase then provided the business case and blueprint to broaden the effort to other brands and markets, ultimately generating millions in incremental MROI through creative and team productivity improvements.
Because marketing ROI is ultimately determined both by the brand and customer behavior, it can’t be encapsulated or fully understood solely through the lens of marketing. Quite the opposite, marketing ROI manifests itself across company financial statements, sales figures, and customer satisfaction reporting. Marketing should still be budget and P&L-accountable, revenue-driven, and a disciplined user of data and analytics, but when it comes to playing an important role in its customers’ lives, it’s far more important to get the overall relationship right than count every word in the conversation.
For more on how to approach marketing ROI, download our new playbook “Three New Strategies To Unlock More ROI From Your Marketing”.


Resource: https://blog.percolate.com/2016/05/marketing-roi-measurement/?utm_campaign=Submission&utm_medium=Community&utm_source=GrowthHackers.com




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Berapa sih nilai dari blog gue DALAM DOLLAR  ? http://richardnata.blogspot.com/2015/04/berapa-sih-nilai-dari-blog-gue-dalam.html


Need a professional writer? Fiction and non-fiction? contact richard.nata@yahoo.co.id
Let me introduce myself. My name is Richard Nata. I am an author, novelist, blogger and ghost writer. My articles, including short stories have been published in magazines and newspapers since 1994. I have written a lot of books, both fiction and non-fiction. So I was a professional in the field of writing, both fiction and non-fiction.

I was born in Jakarta, August 17, 1968.  

In 1988, at the age of 20 years, I started working as an accounting staff. Age 24 years has occupied the position of Finance Manager. Age 26 years as a General Manager.

In 1994, my articles published in magazines and tabloids.

In 1997, I wrote a book entitled "Buku Pintar Mencari Kerja". This book is reprinted as much as 8 times. Through the book, the authors successfully helped tens of thousands of people get jobs at once successful in their careers. They were also successful when moving to work in other places.

In 1998, I started investing in shares on Bursa Efek Indonesia (Indonesia stock exchange). As a result of investing in the stock market then I can provide consulting services for companies that want to go public in Indonesia stock exchange.

more information :
1. IPO KAN PERUSAHAAN ANDA DI BEI, TRIK TERCEPAT MENJADIKAN ANDA SEORANG KONGLOMERAT. brand, ideas, story, style, my life: IPO KAN PERUSAHAAN ANDA DI BEI, TRIK TERCEPAT MENJADIKAN ANDA SEORANG KONGLOMERAT.
2. JASA KONSULTAN GO PUBLIC ( IPO ) DI BURSA EFEK INDONESIA. 


BUKU PINTAR DAPAT KERJA GAJI TINGGI PINDAH KERJA GAJI SEMAKIN TINGGI made by retyping the book BEST SELLER of the author, entitled “Buku Pintar Mencari Kerja”. This ebook available on google play.

In 2015, I had the idea of a startup company where the readers can decide for themselves the next story. WASN'T THIS A GREAT IDEA? IF can be realized WILL BE WORTH billions USD. Because CAN PRODUCE FOR MILLIONS OF DOLLARS even tens of millions USD annually. 

In theory, in 10-20 years into the future, my startup income, amounting to hundreds of million USD annually can be obtained easily. AND IF FOLLOWED BY MANY COMPANIES IN THE WHOLE WORLD WILL THEN BE A NEW INDUSTRIAL worth trillions USD. 

To be honest. Currently I'm not having a lot of money. So I start marketing my startup with blogspot.

My STARTUP :


A story with millions of choices in it - looking investor like you.



Try to imagine this. When you're reading a story on the web or blog, you are given two choices. You can choose the next story based on your own choice. After selecting then you can continue reading the story. Shortly afterwards you will be presented back to the 2 other options. The next choice is up to you. Then you continue the story you are reading. After that you will be faced again with 2 choices. So onwards. The more stories you read so the more options you have taken.


If you feel curious then you can re-read the story by changing your selection. Then you will see a different story with the story that you have read previously. The question now is why is this so? Because the storyline will be varying according to your choice. 


I, as the author is planning to make tens of thousands of articles with millions of choices in it. With tens of thousands of articles then you like to see a show of your favorite series on TV for several years. The difference is while watching your favorite TV series, then you can not change the story. Meanwhile, if you read this story then you can alter the way the story according to your own choice.

You might say like this. Sounds like a book "choose your own adventure". Books I read when I was young.

Correctly. The idea is taken from there. But if you read through a book, the story is not so exciting. Due to the limited number of pages. When a child first you may already feel interesting. But if you re-read the book now then becomes no fun anymore because you don't get anything with the amount of 100-200 pages. 

Have you ever heard of game books?  When you were boy or girl, did you like reading game books? I think you've heard even happy to read it.

Gamebooks are sometimes informally called choose your own adventure books or CYOA which is also the name of the Choose Your Own Adventure series published byBantam BooksGamebook - Wikipedia, the free encyclopedia
Gamebook - Wikipedia, the free encyclopedia

A gamebook is a work of fiction that allows the reader to participate in the story by making effective choices. The narrative branches along various paths through the use of numbered paragraphs or pages.
Lihat preview menurut Yahoo

Bantam Books with the Choose Your Own Adventure 

series has produced more than 250 million US 

dollars. While I offer you more powerful than the Choose 

Your Own Adventure. Because of what? Because the 

story that I made much more interesting than the stories 

created by the authors of Bantam Books. You will not get anything just to 100-200 pages. While the story that I created is made up of tens of thousands of articles with millions of choices in it.

For comparison are the books published with the theme "choose your own adventure" produces more than 250 million copies worldwide. If the average price of a book for 5 USD, the industry has produced more than 1.5 billion USD. But unfortunately this industry has been abandoned because the reader begins to feel bored. The last book was published entitled "The Gorillas of Uganda (prev." Search for the Mountain Gorillas ")". And this book was published in 2013.

Based on the above, then you are faced with two choices. Are you interested in reading my story is? Or you are not interested at all. The choice is in your hands.
If you are interested then spread widely disseminated this article to your family, friends, neighbors, and relatives. You can also distribute it on facebook, twitter, goggle +, or other social media that this article be viral in the world. By doing so it is a new entertainment industry has been created.

Its creator named Richard Nata.

The full articles that talks about this: 
  



WHY DO I NEED STARTUP FUNDS FROM INVESTORS? I NEED A LOT OF FUNDS FROM INVESTORS BECAUSE I HAVE TO LOOKING FOR EXPERT PROGRAMMERS(IT).BECAUSE THE DATA IS HANDLED IS VERY LARGE, IT MAY HAVE TO WEAR SOME PROGRAMMERS(IT).

I CAN NOT WEAR SOME FREELANCE PROGRAMMER BECAUSE THE DATA MUST BE MONITORED CONTINUOUSLY FROM VIRUSES, MALWARE, SPAM, AND OTHERS.

IN ADDITION FUNDS FROM INVESTORS IS ALSO USED TO BUY SERVERS WITH VERY LARGE CAPACITY. FUNDS ARE ALSO USED TO PAY EMPLOYEE SALARIES AND OPERATIONAL COSTS OF THE COMPANY.

FUNDS CAN ALSO BE USED FOR ADVERTISING AND OTHER MARKETING STRATEGIES.FUNDS CAN ALSO BE USED TO ADVERTISE MY STARTUP AND OTHER MARKETING STRATEGIES.

IF I GET A VERY LARGE FUND, THE PART OF THE FUNDS USED TO TRANSLATE THE STORY INTO VARIOUS LANGUAGES.With more and more languages, the more readers we get.
WITH MORE AND MORE READERS, THE MORE REVENUE WE GET. 

AS AN INVESTOR THEN YOU DO NOT HAVE TO FEEL ANXIOUS ABOUT YOUR FUNDS. BECAUSE YOUR FUNDS WILL NEVER BE LOST BECAUSE IN 3-5 YEARS YOU HAVE RETURNED THE FUNDS COUPLED WITH PROFIT.
THIS BUSINESS IS ONE AND THE ONLY ONE IN THE WORLD.

If we can make a good story, so that the readers will 

come again and again for further reading the story then 

our earnings will continue to grow and will never 

diminish. This is due to new readers who continued  to 

arrive, while long remained loyal readers become our 

customers.

So that the number of our readers will continue to 

multiply over time. With the increasing number of loyal 

readership then automatically the amount of income we 

will also grow larger every year. The same thing 

happened in yahoo, google, facebook, twitter, linkedin, 

and others when they still startup.

Deuteronomy {28:13} And the LORD shall make thee the 

head, and not the tail; and thou shalt be above only, and 

thou shalt not be beneath; if that thou hearken unto the commandments of the LORD thy God, which I command thee this day, to observe and to do [them: ]

Try to imagine this. If I give a very unique story. It was the first time in the world. But the world already know this story even liked it. Because the world love the game books. While the story that I made is the development of game books.
Do you Believe if I dare say if I will succeed because my story will be famous all over the world as Harry Potter?
I believe it. Not because I was the author of the story, but because of the story that I made is unique and the only one in the world. 
Income from my startup :
1. Ads. With millions of unique visitors, the price of the ads will be expensive.
2. Affiliate marketing. In addition to advertising, we are also able to put up some banner from affiliate marketing.
3. Contribution of the readers. If you have a million readers and every reader to pay one US dollar per year then you will get the income of one million US dollars per year. 
If you have a million readers and every reader to pay one US dollar per month then you will get as much revenue twelve million US dollars per year.
4. Books and Comics. After getting hundreds of thousands to the millions of readers of the story will be made in books and the form of a picture story (comics).
5. Movies. If we have a good story with millions of readers then quickly we will be offered to make a film based on the story.
6. Merchandise related to characters. After the movies there will be made an offer for the sale of goods related to the characters.
7. Sales. With millions of email that we have collected from our readers so we can sell anything to them.
    Each income (1-7) worth millions to tens of millions of US dollars. 
    Because each income (1-7) worth millions to tens of millions of US dollars. Then in 10-20 years into the future, AI will be earning hundreds of million USD annually.
So how long do you think my story that I made could gather a thousand readers? Ten thousand readers? One hundred thousand readers? A million readers? Five million readers? Ten million readers? More than ten million readers?
But to get all of it of course takes time, can not be instant. In addition, it takes hard work, big funds and placement of the right people in the right positions.
By advertising, viral marketing, strong marketing strategies and SEO then a million readers can be done in less than a year. Ten million readers can be done in two to three years.
This is the marketing strategy of my startup.
When hundreds of thousands or millions of readers already liked my story then they have to pay to enjoy the story that I made.
If you are a visionary then you will think like this.
With the help of my great name in the world of business, my expertise in marketing, advertising, marketing by mouth, viral marketing, then collecting a million readers to ten million readers will be easy to obtain. Is not that right?
The question now is what if people like my story as they like Harry Potter? You will get tens of millions or even hundreds of millions of email addresses from readers. With that much email, we can sell anything to the readers.
Since April 2013, Wikipedia has around 26 million articles in 285 languages are written by 39 million registered users and a variety of anonymous people who are not known from other parts of the world.  Web ranked by Alexa, Wikipedia is a famous website number 6 which has been visited by 12% of all Internet users with 80 million visitors every month and it is only from the calculation of America.

resource : http://www.tahupedia.com/content/show/136/Sejarah-dan-Asal-Mula-Wikipedia

If no Wikipedia then need hundreds of thousands to millions of books required to make 26 million articles in 285 languages into books.

With the Wikipedia then people started to leave to read a book or books to seek knowledge about a subject or many subjects.

The same thing will happen. Read a story in a book or books to be abandoned. Read a story with millions of choices on the web or blog is far more interesting than reading a book or books. 

So what happens next? In 10-20 years ahead then read a story in a book to be abandoned. Otherwise my startup will grow and continue to develop into a new entertainment industry.

New entertainment industry, where I was a forerunner startup will continue to evolve. 
Therefore, in 10-20 years into the future, my startup will be earning hundreds of million USD annually.

So do not delay. Invest your money immediately to my startup. Take A Look. There are so many advantages if you want to invest in my startup.
WHY YOU SHOULD INVEST YOUR MONEY RIGHT NOW? .
IF YOU INVEST YOUR FUNDS IN ONE, TWO OR THREE YEARS INTO THE FUTURE, YOU MAY BE TOO LATE.
BECAUSE IN 1-3 YEARS INTO THE FUTURE THEN I'VE GOT THE FUNDS. THE FUNDS CAN COME FROM SOME INVESTORS, LOANS FROM BANKS OR FROM ADVERTISEMENTS POSTED ON MY BLOG.

IF I'VE GOT A LARGE AMOUNT OF FUNDS THEN I'VE NO NEED OF YOUR FUNDS. SO INVEST NOW OR NOT AT ALL.

My BLOG started to be written January 11, 2015. TODAY, MAY 30, 2015, THE NUMBER OF CLICKS HAS REACHED 56,750. SO FAR SO GOOD.

If I get big funds from investors then with a quick story that I wrote will spread throughout the world.

So I got acceleration because I can put ads in a large variety of media such as Google AdWords, Facebook, and others. I also can perform a variety of other marketing strategies.
If I do not get funding from investors then my story would still spread throughout the world. But with a longer time, Slow but sure.

So either I get funding from investors or not, the story that I wrote will remain spread throughout the world. Ha ... 7x

So don't worry, be happy.

My advice to you is you should think whether the data that I have provided to you makes sense or not .
If my data reasonable then immediately invest your funds as soon as possible.

Then we discuss how we plan further cooperation.

Thank you.
Lord Jesus bless you.
Amen
P.S. The offer letter I gave also to the hedge funds and 

venture capital and other major companies 

in the entire 

world. So who is fast then he will get it.


P.P.S. In addition, there is one more thing I 

want to tell you. If a story can generate tens 

of millions of US dollars, then what if made 


many stories? Then why do not you make 2, 3 or many stories? You will get hundreds of million USD annually.

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