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Proving our value to clients through ROMI

Proving our value to clients through ROMI
Richard Morris, Managing Director at Vizeum, introduces the new IPA ROMI calculator to help agencies measure campaign effectiveness

As a practitioner and a manager in a marketing services company I, like many of my counterparts, have obsessed with proving the value of our contribution to the client community. As such, the new IPA ROMI calculator is very welcome.

Whilst Return on Marketing Investment (the financial measure which provides the ratio of profits generated by marketing investment) is by no means the only measure of marketing effectiveness it is, in most cases, one of a handful of critical measures that should make up the performance dashboard.

The IPA Effectiveness Awards are, quite simply, the definitive standard in marketing effectiveness. At our agency, Vizeum, they are an essential resource in understanding the true value of communications, and help us guide and shape the way we think of media and communications today.

I have no doubt that the same can be said for all the best agencies in town.

But surprisingly, IPA research suggests that less than 20% of marketing activity is evaluated in terms of financial payback, despite the fact that profit is often the ultimate motive for commercial firms.  Further, the number of marketing cases that calculate ROMI incorrectly is worryingly high.

Our mission at the IPA, in proving and measuring the value of creativity, is to make the incredible treasure house of learning that is IPA Effectiveness accessible to all to help influence the future stars of effectiveness.

Acknowledging that looking through tomes of IPA Effectiveness Awards papers might not be possible for all, we have endeavoured to make some of the essential numbers instantly available, and promote a consistently accurate approach to ROMI calculation.

So a warm welcome to the IPA ROMI calculator, an easy and definitive guide to working out and benchmarking return on marketing investment.

Whilst we will evolve the calculator over time, its initial construct provides key benefits.

Firstly, a best practice guide on how to calculate ROMI.

Secondly, the calculator itself, and finally a bank of case studies - recent Gold and Grand Prix winners stretching across sectors and continents. The range of ROMI performance is fascinating, particularly the TDA Teacher Recruitment campaign that delivered a return of 10100%.

It must be said that this is no substitute for spending time with the papers in their entirety, but if it helps promote best practice we would be delighted.

So, if you want an easy way to understand how to calculate and benchmark just how ambitious your plans for marketing effectiveness are, then just visit

We are looking forward to adding the Effectiveness Stars of 2014 when the winners are revealed in the autumn. And to those of you crafting your entries, you’ve still got some time to sense check your submissions, and the App will help make sure your calculations are correct and your case compelling.

*The IPA’s Evaluation Best Practice Guide

The 2014 IPA Effectiveness Awards competition is open to entries until 30th April.

The ROMI calculator will also be included in the Eff Test, the IPA qualification on effectiveness and measurement for mid-level planners. Further details:

Richard Morris is the Managing Director at Vizeum

Last updated 11/04/2014

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