This document discusses return on investment (ROI) measurement and calculation for marketers. It explains that ROI is calculated as profit divided by investment. It also discusses factors that influence ROI methodology, such as business size, product uniqueness, and purchasing complexity. The document outlines four types of sales processes and their measurement challenges from last click sales to multi-channel customer journeys. It provides tips on metrics, testing, and tools to measure ROI and concludes that the total ROI is the sum of partial ROIs when measured smartly.

1. ROI – RETURN OF
INVESTMENT
MEASUREMENT VS.
MARKETERS INTUITION
Marcel Vašš,
CEO, Etarget
Budapest, 27.11.2012

2. HOW TO CALCULATE ROI?
PROFIT / INVESTMENT = ROI %
profit investment
gross margin or net to traffic or to visibility
profit (segmentate)
- per sale
- in 3 months
- recommendation value
coefficient

3. WHAT TO MEASURE?
KEY FACTORS THAT INFLUANCE
METHODOLOGY
Size of your business / ambitions
Uniqueness of product
Complexity of Purchasing process

4. 1. LAST CLICK SALE
AD SALE
Easy to measure
Direct advertising cost vs. profit generated
on sale
•No brand ambition
•No uniqueness
•Easy to decide
•Easy to buy

5. 2. MULTI CHANNEL SALE
AD+AD+AD+AD... SALE
Possible to measure
funnel advertising cost vs. profit
generated on sale
•No brand ambition
•No uniqueness
•Longer decision process
•Easy to buy

6. 3. BRANDED SALE
AD+AD+BRAND SALE
Hard to measure
funnel advertising + brand awareness
cost vs. profit generated on sale
•Branded
•High or low uniqueness
•Shorter or longer decision process
•Easy to buy

7. 4. MULTI CHANNEL CUSTOMER TO SALE
AD+AD+CONTENT CUSTOMER SALE
Hard to measure
Investment vs. engagement vs. sale
•Branded
•High uniqueness
•Longer decision process
•Complex buying process

8. HOW TO MEASURE?
BE AWARE OF ONLINE METRIC LIMITS
• technical limits of internet
• people are deleting cookies
• people are using more browsers witch mean
more cookies
• people are using more devices witch mean
more cookies (work PC, home PC, mobile, tablet)

9. TIPS FOR MEASUREMENT
METRICS AND TOOL
MEASURING
• last click analytics (GA, Etarget conversion)
• multi channel clicks analytics (GA, coremetrics,
omniture,webtrends)
• retargeting analytics (GA, Etarget conversion)
• post click engagement (Clicktale, CrazyEgg)
• post ad view analytics (Coremetris, omniture)

10. TIPS FOR MEASUREMENT
METRICS AND TOOL
TESTING
• regional tests (or other targeting)
• coupon tests, call tests (internal metrics)
• brand value analytics (branded vs. non branded
store)
• on store effect of online campaign (Facebook
inspiration with loyalty cards)

11. a) think about goals and ambitions
b) find key influencers and their power to your
success
• right time on right place navigation
• knowledge
• brand Awareness
c) define right metrics
d) measure
Total ROI is sum of partial ROIs. Lets combine it smart!

12. THANK YOU!
QUESTIONS?
marcel.vass@etarget.eu