How modelQED® Helps You Calculate Marketing ROI
modelQED has been designed from the beginning to automatically calculate the key outputs that are required from a marketing mix project. These outputs are used to address a range of key questions that advertisers need to address. These questions might include:
- What was the ROI on our advertising activities? Should we have done this differently?
- What was the ROI on our promotional activities? Should we have done this differently?
- Had our activities hit the point of diminishing returns where we needed to shift funds?
Each of these questions is essentially an ROI question. Whether the question is regarded as being a marketing ROI, media ROI or promotional ROI question, they are all in essence questions about what is being returned from an organisation’s marketing activities. Whilst the future is not going to be the same as the past, it is likely that history is a strong predictor of the future and it is this fact that analysts are looking to in adopting marketing mix modelling.
By calculating the incremental benefit from the various marketing activities, modelQED can automatically calculate revenue and profit versions of the following marketing ROI metrics:
- average advertising ROI
- marginal advertising ROI
- average promotional ROI
- marginal promotional ROI
With this information to hand, the user can quickly report on what was achieved through historical marketing programmes and help to determine which ones were truly effective. |