ROI is 100% media agnostic

Olivier Blanchard gave an interesting presentation and made a point that we often loose site of, “ROI is 100% media agnostic” and it usually happens in a specific sequence that goes something like this:

Investment > action > reaction > non-financial impact > financial impact.

“ROI” doesn’t care much about engagements and even less about impressions. It only care about a measurable uptick in sales or in mechanisms that create them at predictable conversion rates.

Blanchard argues that most agencies only take the process to non-financial impact measurement and never get to the part where they measure the real financial impact. Measuring media like impressions, click through, video views is really only measuring the “potential” of real financial impact. Things like revenue generation, customer acquisition, redemption all have measurable and reliable valuation to compare an investment against. For instance, a Twiiter campaign that results in 300K opt-in’s on a mailing list can be worth $400K to a brand because they can predict the sales impact from it. Here’s an excerpt for Olivier talking at a recent conference in the UK

Jillian Koeneman took Olivier’s comments and fashioned a nice ROI process visual in this little chart that should hang on every business development person’s wall at a digital agency. It doesn’t answer how to do it but it is a nice “True North” compass when thinking about how to structure your next campaign.

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2. indeliblemedia (daniel sixsmith)

   
   12/15 2009

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   ROI is 100% media agnostic – [link to post]

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