They say you must spend money to make money, but when it comes to marketing, how you spend the money is what matters. Is your current marketing bringing returns? If not, its an expenditure – a waste of money. If it is bringing a lift in business above cost, then it is an investment.
The ROMI principle, return over marketing investment, is spelled out clearly by Australia e-commerce and digital marketing pro Alex Levashov. He says, “As a marketer you should always remember that if you cannot evidence the value from your marketing activities don’t be surprised the budget gets cut!” Of course, if you’re the one setting the budget, it’s your job to know when to cut marketing strategies with zero or negative lift.