I spoke with a sophisticated marketer and she mentioned a marketing concept that was new to me called ROMO or Return on Marketing Objectives. In addition to a pure return on investment (ROI) calculation, ROMO includes measurements of changes in brand equity value, Net-Promoter Score and brand-recall metrics to measure the impact of a marketing dollar. Broadening out the way to measure of marketing spend makes sense to me because it helps articulate more of the value of a dollar of marketing spend. After all, intuitively we know Superbowl ads increase brand awareness, which can be incredibly valuable, even if the ads don’t immediately increase sales.
(1) How easy is ROMO to measure?
(2) Is there sufficient short-term linkage (and clear enough causation) between marketing spend and ROMO?