WHY ‘RISK ON MARKETING INVESTMENT' IS THE NEW ROI

Summary from the TLDR Marketing newsletter

A Fortune 100 CEO redefines ROI as "risk on marketing investment" to emphasize the importance of managing uncertainties and opportunity costs in marketing spend. Traditional ROI metrics are ineffective, he believes, with up to 30% of billion-dollar marketing budgets getting wasted. The CEO advocates reallocating funds to initiatives like talent acquisition and market expansion. He stresses the importance of reputation and brand trust, noting that demand generation often fails to demonstrate tangible results. C-suites increasingly demand precise, data-driven accountability in marketing and other functions, driven by external pressures like economic volatility and shareholder scrutiny.