Commentary

The ROI Meter: How Brands Measure Return On Investment

Despite challenges, marketers appear to be confident in their ability to measure return on investment (ROI).

It varies by geography — but only slightly, judging by a new study from Nielsen titled The Marketing ROI Blueprint: Unlocking the full value of marketing investments.  

The Asia-Pacific region leads the way, with 90% expressing confidence. This area is followed by North America (88%), Latin America (87%), and Europe (75%). The global average is 85%. 

The respondents express confidence in their ability to measure ROI for paid media channels, in this order: 

  • Social media 
  • Video online/mobile
  • Search
  • Display: online/mobile 
  • OTT TV/connected TV 
  • Native advertising 
  • Email
  • Out-of-home
  • Streaming audio

advertisement

advertisement

Email marketers are “very or somewhat confident” in their measurement ability, as are all of these top channels, the study adds.  

Many marketers also measure sponsorship and influencer spend. When asked, they answer:  

  • Yes, holistically with my traditional, digital measurement — 69% 
  • Separately from my traditional digital measurement — 27%
  • Not measuring the ROI of my sponsorship/influencer/brand ambassador spend — 4%

They also describe their cross-media measurement approach as follows:

  • Solely focused on reach/frequency — 27% 
  • Focused on both reach/frequency and ROI — 61%
  • Solely focused on ROI — 12% 

For North America, these are the tools used to measure ROI holistically:

  • Media metrics 
  • Social listening
  • Marketing mix 
  • Brand lift (upper)
  • Sales lift (lower)
  • Surveys
  • Attribution
  • Gut feeling 

“Media metrics remain the most widely used tool for ROI evaluation, with 54% of marketers relying on these foundational measures,” the study notes. “Marketers are moving beyond foundational metrics in search of methods that balance depth, speed, and actionable insight.” 

But it adds: “While some approaches offer rigor, they can be too slow or complex for agile decisions. That’s why tools like sales lift and brand lift are gaining traction — they deliver timely, meaningful results.”

Next story loading loading..