Message from September 2020 ***The new version of Marketing Metrics is out this month. Please rush out and buy your copies, click here. Please leave us a review at Amazon or wherever you bought your copy.*** This posted looked at changes for the 4th edition of Marketing Metrics. Specifically new sections on sponsorship metrics.
Changes For The Forth Edition Of Marketing Metrics
When you dig into the book you will notice a number of changes. We have added information of what has been happening in the world of Marketing Metrics. We now have details on MASB and the ISO Brand Evaluation Standard. Plus we have added new metrics and improved the organization.
We have added a decent amount of material on sponsorship. We cover Equivalent Value from Sponsorship, who this metric provides use to, and caveats. The most relevant caveat being that the equivalent value assumes you would have spent the money on another form of advertising/sponsorship.
Sponsorship Metrics: Sponsorship ROI
Perhaps the most interesting addition is Sponsorship ROI. To be clear this is really just ROI in the sponsorship context. Still we have seen some variations used for sponsorship that require more clarity to be brought. One major caveat we have here is about not netting off the costs against the returns.
“Returns to sponsorship should be added together in the numerator of the equation. Netting off direct returns (such as the profit from pouring rights) from sponsorship costs has the effect of lessening the costs. Generally speaking, this increases the reported ROI, showing an overly positive picture of the success of the sponsorship.” (Bendle, Farris, Pfeifer and Reibstein, 2020, page 338). Basically netting off the costs against returns makes any returns that aren’t netted off seem massive, against the small amount of costs that are not netted off. At its most extreme things gets very odd as one starts to get negative returns on massively profitable ventures.
The overall message is you need a wonderful new edition of our book to help you with all your Marketing Metrics needs.
For more on ROI see my popular marketing metrics page here.
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Read: Neil T. Bendle, Paul W. Farris, Phillip E. Pfeifer, and David Reibstein (2020), Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance, Pearson FT Press, https://www.amazon.com/Marketing-Metrics-4th-David-Reibstein-dp-0136717136/dp/0136717136/