From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

Unlock the full course today

Join today to access over 22,600 courses taught by industry experts or purchase this course individually.

Measuring communications performance

Measuring communications performance

From the course: CMO Foundations: Measuring Marketing Effectiveness (ROI)

Start my 1-month free trial

Measuring communications performance

“

- There's an old joke in the advertising business suggesting that 50% of all ad spending is wasted. The problem is no one knows which 50%. Well, that's not completely true, but I have to admit, measuring this aspect of marketing is a challenge. The key, as with all metrics, is to match the metric to your objective. Spending money on communications is an investment. As with all marketing investments, you want to know if you're getting your money's worth, the return achieved, given the resources you put into it. Let's start with the inputs. At its simplest level, imagine sending one marketing message to one customer. The input then is what it cost you to send that single message. If you send the message a second time, well, your cost doubles. If you send the same message once and it's received by two customers instead of one, your effective cost per customer is cut in half. So what really matters is the number of total…

Contents