Focus on long-term growth, Mathias urges brands
By Felicia Nwosu
Okpe Mathias, Managing Partner/Creative Director, Badger Creative Limited, has advised marketers not to focus only on the immediate Return on Investment (ROI) of marketing campaigns to avoid hurting their brands in the long-term. He, however, suggested that they concentrate more on the brands’ long-term growth, while noting that ROI is a powerful metric that requires professional marketers to know what to measure and how to measure it through a specific marketing plan to ascertain the right outcome.
Stating this in an exclusive interview with MARKETING EDGE, he cautioned that failure to recognize long-term goals as the focal point of marketing campaigns can lead to loss of potential customers as such an ad may lose its impact at the end of the campaign.
Mr. Mathias, therefore, urged professionals in the marketing space to tread with caution to avoid vanity metrics which can be misleading in their quest for ROI. He emphasized the importance of knowing what to measure and how to measure while encouraging them on focusing on actionable metrics which are pivotal indicators of business such as converting users, conversion rate, customer lifetime value, customer acquisition cost and others.
“It depends on what you want to achieve from such a campaign; it’s either long or short-term goals. Through this, you can ask when you are talking about budgeting in advertising and getting ROI. There are two ways you can measure ROI; the first is if the advertising is tilting towards sales, because there are objectives that the advertising tend to achieve – from awareness, or user app-download, or direct-sales. If the campaign is driving awareness, you might not get monetary value in terms of yielding results, but you can get the number, and how you measure it can be how many people got to know about the brand,” he expalined.
Explaining further, he pointed out that ROI is used to determine the effectiveness of a company’s marketing investment by measuring how much revenue has been generated by a specific marketing campaign in relation to the cost incurred. He opined that leveraging of accurate data will help brand to have inkling on how to make data-driven decisions about allocating their marketing budget to generate the highest ROI.
“You can do a survey where you ask people, “when did you know about this or “since you got to know about it, have you been buying? The percentage of people who now know about it before and after will determine how much you spent to get those people. You will then put the value of that one person, the number of products bought within a period of three months and compare with the amount spent on getting that one consumer, and then divide it with that one person.”
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