Our industry is full of abbreviations: B2C, B2B, P2P, CMO, 4Ps, 4Cs, ZMOT, 3Ls, RFPs, RFIs, AOR, ECD, A2C, and the list goes on. But there is one abbreviation that has been tied on agency earnings more and more as of late, and we are sure it's getting on the last nerve of agency executives and creatives alike.
In business and actual investment, ROI is actually a delightful abbreviation; everyone wants to know what they get based on what they put in. That only makes sense. But when that terrible abbreviation is misplaced and misused on marketing dollars, it can only make our skin crawl when it is brought up.
The conversations that we have been in and heard about have mostly circled around advertising campaigns and how they directly affect revenue. Just recently, we heard of a group of folks who created software that can help track how product placement affects the bottom line.
Yes. Created by two Germany-based thinkers, Placedise involves the gathering of data to determine how product placement, or "embedded marketing activities," affects not only advertising elements but also overall effects for businesses. If Harley-Davidson was featured in a show about motorcycles, did the airing of the show improve sales? If so, how much?
Then the marketing team can present the ROI of its embedded marketing activities without breaking a nervous sweat.
Of course, Placedise is just being rolled out. Indeed, one of the executives posted on LinkedIn's "product placement marketers" group to see how he can get the word out about his technology.
Clearly, then, it needs to be tested.
But if the tests are true, then product marketers and agency execs alike have solid evaluation tools to discuss ROI. Hopefully it's good for the agency folks.
Dwayne W. Waite Jr. is partner and principal at JDW: The Charlotte Agency, a marketing and advertising shop in Charlotte, NC. He enjoys consumer behavior, economics, and football.