The Right Way To Calculate Marketing ROI

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Today, accountability in marketing amounts to table stakes. Companies expect CMOs to provide quantifiable evidence (not squishy metrics such as views and eyeballs) that marketing investments are contributing to real business outcomes. Probably the most popular metric for marketers to invoke is ROI – or, more precisely, marketing ROI (MROI). Trouble is, MROI (alternatively called return on marketing investment or ROMI) is defined differently, measured differently and used for different purposes, resulting in what we might call “MROI Anarchy” across the marketing landscape. This makes the task of connecting marketing to revenue or other business outcomes even more difficult than it already is. But there’s hope. In a newly-published paper, four marketing science and academic gurus have tackled the tricky topic of clarifying both the concept of MROI and how companies should go about measuring and applying