magic works’ Post

If you want a bigger marketing budget you’ve got to be able to talk turkey🦃 Marketers who measure and report return-on-investment are 1.6 times more likely to get a bigger budget. Put yourself in your CFO’s shoes. He or she isn’t a baddie, just a practical numbers person that wants to do the things that’ll make the company grow and avoid taking too many risks. The job is to adjudicate on an inbox full of 100 different things the company might buy, from machines in the factory, to an R&D hire, to a better fleet of delivery vans. And every time something is approved it comes out profits and makes that all important P&L look worse, at least for a time. The decision to approve is about two things: The likely payback and the chances that the person asking the money will manage this expenditure well. Measuring ROI ticks both of those boxes because it not only quantifies the benefits of marketing, it also shows that you’re doing the work to learn and improve how you do it. 🚩If you want to learn more about advertising ROI, including how to do a rough estimate for yourself, how to commission analytics for an accurate read, and how to avoid pitfalls, you should join our Data Works course. There’s still time to sign up, the final deadline is 18th October. Book now: https://lnkd.in/eAi4_JYD. Got questions or a group? Chat to Imogen Howard via [email protected] and she’ll help you out. For econometrics/MMM drop me a message.

Marketing Budget Approval: How to Get Yours Greenlit, According to Marketing Experts & Data https://lnkd.in/gDam5kP7 #v9marketing #marketing #tips #resources

Marketing Budget Approval: How to Get Yours Greenlit, According to Marketing Experts & Data Securing approval for a marketing budget... #Marketing #marketingbudget #prodsenslive https://lnkd.in/dXpDRJ_w https://lnkd.in/d5hbaJnP

Marketing Budget Approval: How to Get Yours Greenlit, According to Marketing Experts & Data: Securing approval for a marketing budget is often tough, especially in times of economic uncertainty.

Marketing Budget Approval: How to Get Yours Greenlit, According to Marketing Experts & Data

Marketing Budget Approval: How to Get Yours Greenlit, According to Marketing Experts & Data

This is the most common mistake I see in marketing: Marketers expect that just because they got a 2.5 ROAS on their first million, they will get the same return on their next million. I've seen a lot of spreadsheets that take that 2.5 and multiply it out. Sorry to burst your bubble. But that’s not how it works. If you know that when you spend your next dollar, you’re not going to get $2.5 back, the missing piece of information is: How much will I get back? Every marketer is comfortable saying, 'If I'm going to spend $1 and make less than $1, I should question that, or I can only do it temporarily.' Even though your incrementality test shows a ROAS of 2.5, that's an average, including the earliest, highest-performing dollars. So, what is the revised answer? That's what you need in your spreadsheet to decide how to reallocate. To answer that, you need to know the shape of the diminishing return curve for all of the channels, then you can game or goal seek it. Because it allows you to continue to reallocate your spend from channels that are saturated and not performing as well as high-performing channels. Or as I like it put it… taking from the poor and giving to the rich.  @Dr Koen adds an interesting POV from the finance perspective: “I often talk to the folks in the finance department who complain that: ‘Every year, the marketing department comes to us to get the budget for a shiny new thing. And when we asked what we could cut, they go absolutely crickets.’ You need to know that things that were perfectly effective and efficient last year might have passed the point of optimal efficiency, so they might not be that efficient anymore. As marketers, we know: - what’s the optimal number of touchpoints you need to get a customer depending on your category - how saturation, diminishing returns, and frequency play out But very often, I see people assuming there are no diminishing returns in reach, and I completely go against it. Here’s my rule of thumb you can use: If you are doing a good job, the first 100k customers you reach with your message are probably the ones with the highest propensity to convert. When you double up that reach, you should expect a lower ROI. Knowing this helps you answer some of the finance questions and get more credibility with the finance department.” This was part of our last edition of Curve Your Enthusiasm, our monthly live forum on Marketing Analytics and Measurement. If you’re interested in the full conversation, here is the episode: YouTube: https://lnkd.in/ebDm9sTc Spotify: https://lnkd.in/eaTms8Zh #marketingeffectiveness #incrementality #marketing

How are those marketing budgets doing? With just over half of 2024 accounted for, it's a good time to evaluate current strategies and budgets to ensure the remaining months count. Check out some tips for building out a strong H2.

This is the most common mistake I see in marketing: Marketers expect that just because they got a 2.5 ROAS on their first million, they will get the same return on their next million. I've seen a lot of spreadsheets that take that 2.5 and multiply it out. Sorry to burst your bubble. But that’s not how it works. If you know that when you spend your next dollar, you’re not going to get $2.5 back, the missing piece of information is: How much will I get back? Every marketer is comfortable saying, 'If I'm going to spend $1 and make less than $1, I should question that, or I can only do it temporarily.' Even though your incrementality test shows a ROAS of 2.5, that's an average, including the earliest, highest-performing dollars. So, what is the revised answer? That's what you need in your spreadsheet to decide how to reallocate. To answer that, you need to know the shape of the diminishing return curve for all of the channels, then you can game or goal seek it. Because it allows you to continue to reallocate your spend from channels that are saturated and not performing as well as high-performing channels. Or as I like it put it… taking from the poor and giving to the rich.  Dr Koen adds an interesting POV from the finance perspective: “I often talk to the folks in the finance department who complain that: ‘Every year, the marketing department comes to us to get the budget for a shiny new thing. And when we asked what we could cut, they go absolutely crickets.’ You need to know that things that were perfectly effective and efficient last year might have passed the point of optimal efficiency, so they might not be that efficient anymore. As marketers, we know: - what’s the optimal number of touchpoints you need to get a customer depending on your category - how saturation, diminishing returns, and frequency play out But very often, I see people assuming there are no diminishing returns in reach, and I completely go against it. Here’s my rule of thumb you can use: If you are doing a good job, the first 100k customers you reach with your message are probably the ones with the highest propensity to convert. When you double up that reach, you should expect a lower ROI. Knowing this helps you answer some of the finance questions and get more credibility with the finance department.” This was part of our last edition of Curve Your Enthusiasm, our monthly live forum on Marketing Analytics and Measurement. If you’re interested in the full conversation, here is the episode: YouTube: https://lnkd.in/ebDm9sTc Spotify: https://lnkd.in/eaTms8Zh #marketingeffectiveness #incrementality #marketing