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CALCULATION OF MARKETING ROI IN MARKETING MIX MODELS, FROM ROMI, TO MARKETING-CREATED VALUE FOR SHAREHOLDERS, EVAM
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In this paper we explain using a real example of a fast consumer good the construction of a Marketing Mix model for calculating the return on marketing investment (ROMI) as a metric of profitability and the calculation of economic value added of marketing (EVAM) as a metric of shareholders value creation. We propose a novel approach for estimating the coefficient lof the Adstock model using impulse response functions. We measure the return of short-term advertising and its combination with long-term using as a variable brand awareness measured with a tracking throughout the entire period analyzed. The result of the analysis indicates that short-term advertising has a negative return which happens to be very positive when we consider the combined effect with brand awareness.
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