Advertising has to be the only business where billions of dollars can be spent and it’s OK to say, “Sorry, we really don’t know how much your sales will go up after this ad campaign.” That’s changing.
“Chief marketing officers are under enormous pressure to demonstrate returns on investment,” Bob Liodice, president-CEO of the Association of National Advertisers, told attendees at the Television Bureau of Advertising’s Forecast Conference in New York. “CEOs are holding marketers accountable for the effective management of billions of dollars n marketing expenditures. There is little tolerance for soft measures, excuses and explanations.”
Marketers will demand to see proof of concept for advertising programs and will not readily accept “standard” annual rate increases that have been the norm for years. While an ROI analysis is old hat for online marketers, it’s a challenge for those using mostly offline media. Those offline media that wish to survive might want to begin exploring proof of concept techniques for their media.
