”In the past it has been difficult to understand, analyse\u00a0and calculate the economic effects of advertising campaigns. We have changed this by providing a tool for ad sales reps and advertisers to work together in order to understand the real impact that advertising plays in increasing advertiser sales,” says RAM’s head of research Staffan Hult\u00e9n.<\/em><\/p>\n Advertising that focuses on brand building has the objective of providing a long-term effect and should be measured with the aim of understanding how the brand develops over time. True product advertising however, is used to provide short-term economic effects. RAM’ s ROMI-calculator is designed just for this purpose.<\/p>\n The starting point for the calculation is RAM\u2019s advertising effectiveness measurement results. The question concerning\u00a0buying intentions<\/em>\u00a0shows the number of potential customers that the campaign generated – however the figure is often overrated, to varying degrees. Two additional bits of information need to be given to help calculate the true ROMI; the campaign cost and profit\/contribution per customer.<\/p>\n The tool automatically calculates the potential total profit. In this example it is 847 600 SEK. 6880 people each contributing SEK 145 in profit \/ margin per person minus the campaign investment of SEK 150 000. The estimate also suggests that if only 15%, or 1030 people, out of a possible 6880 have answered truthfully, the campaign reached break-even.<\/p>\n <\/p>\n![\"\"](\"https:\/\/www2.rampanel.com\/wp-content\/uploads\/2017\/01\/romi1sv-1024x396.jpg\")
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