3 problems that can arise when allocating marketing budget according to campaign ROI

What could possibly go wrong when allocating marketing budget according to campaign ROI? Well, depending on exactly how you do that, quite a lot actually!


Here are just three examples

  1. If you approve any campaign expected to provide an ROI > X you may be approving campaigns for which there may be alternatives that yield better X+++ returns. These may be different types of campaign with the same objective, or for instance the same campaign but just run at a different time of year.
  2. It’s well known that all channels can suffer from over-use or saturation, at which point their ROI will start to drop. Just think of the irritation caused by a TV advert repeating too often. But if you cannot tell what the cumulative ROI of all your campaigns in a channel is, how are you going to be able to measure this effect, and know when to reduce spend in one channel or increase it in another?
  3. Campaigns don’t just happen in isolation; they happen within the context of all the other campaigns that are happening at the same time, each of which may have an impact on a potential customer. Hence you spend on DRTV will impact your returns from direct mail or door-drops. Understanding the impact of your main channels on other channels can become critical.

So, how do you resolve these issues and get to the point where allocating your marketing budget takes account of them?

We have developed a process, and related technology, that is designed to help you get to this point. The way it works in detail varies with each client, because no two clients share the same marketing campaign mix, but the outcome will be that you have a marketing budget that should get you the best possible return.

Contact us for more information and a no-obligation chat.

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UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.