A better way to measure the value of marketing?

From The Riskiest Investment a Startup Can Make by Tom Tunguz:

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.

Notes:
(1) How easy is ROMO to measure?
(2) Is there sufficient short-term linkage (and clear enough causation) between marketing spend and ROMO?

One thought on “A better way to measure the value of marketing?

  1. Pingback: How to get the most out of attending a conference | A Founder's Notebook

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