The roi study


Calculating revenue return on investment (RROI)


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Calculating revenue return on investment (RROI)


Spend £m

Sales £m due to spend

RROI

Channel 1



Channel 2

Channel 3

Channel 4

Channel 5

Total

£2.5


£0.5

£1.5


£1.0

£0.5


£6.0

£3.0


£0.5

£3.0


£1.5

£0.6


£8.6

1.20


1.00

2.00


1.50

1.20


1.43

Calculating Revenue Return on Investment (RROI)
  • We isolate and quantify drivers of sales.
  • This chart is a very simplified illustration of that, showing the sales pattern over time broken down by the different drivers, in this case a combination so enabling calculation of Revenue return on media investment

A meta analysis of econometric models
  • Meta analysis is analysis of analysis results – the “meta data”
  • It’s common in pharmaceuticals, clinical drugs trials
  • One trial isn’t enough, you need hundreds so as to be sure of your results
  • If all the trials come up with the same answer, that’s a very strong result
  • If the trial results are different, then being able to explain robustly why they are different – different dosage, different demographic sample - is again a result and new learning
  • Using our cake analogy – we can work out whether better tasting cakes always use butter rather than margarine in the recipe, and whether using three eggs works better than two


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