Does this compute to you? Or, can you count? No? Thought not.

Do you think an advertising spend of $1 million that gets $1.28 million in retail sales is a great investment?

Think about it before you answer.

In AdAge’s online mag, with breathless excitement, it was suggested on this basis that “outlays on social networks by package-goods brands can result in offline sales impact and deliver positive return on investment.”

Depends on what you mean by positive. Positive if you don’t have to do a few trivial things like getting the raw materials, then making, packaging, selling-in, distributing, displaying and retailing your stuff.

I think grown-ups know that no sane firm planning to stay in business for another few days spends a dollar to get $1.28 in sales. Grown-ups know that in the sector mentioned, Consumer products, 7.9:100 was the last quoted average from leading authority Schonfeld & Associates. Not 100:128.

But just in case you think nobody could be that stupid, the people who wrote this report said, “by the measure that matters most, sales, the campaign appeared to pay off nicely. It produced $1.28 million in offline sales.”

If you found a way of wasting money to that degree, then knew so little you boasted about it, any normal boss would throw you out in the street. But of course, we all know social media are THE thing and marketers are like sheep.

In the favourite phrase of my old boss David Ogilvy, “Stupid bastards.”

Or to put it more simply a great many people in marketing haven’t the vaguest vestige of a clue. I blame the schools. Bring back arithmetic.

About the Author

In 2003, the Chartered Institute of Marketing named Drayton one of 50 living individuals who have shaped today’s marketing.

He has worked in 55 countries with many of the world’s greatest brands. These include American Express, Audi, Bentley, British Airways, Cisco, Columbia Business School, Deutsche Post, Ford, IBM, McKinsey, Mercedes, Microsoft, Nestle, Philips, Procter & Gamble, Toyota, Unilever, Visa and Volkswagen.

Drayton has helped sell everything from Airbus planes to Peppa Pig. His book, Commonsense Direct and Digital Marketing, out in 17 languages, has been the UK’s best seller on the subject every year since 1982. He has also run his own businesses in the U.K., Portugal and Malaysia.

He was a main board member of the Ogilvy Group, a founding member of the Superbrands Organisation, one of the first eight Honorary Fellows of the Institute of Direct Marketing and one of the first three people named to the Hall of Fame of the Direct Marketing Association of India. He has also been given Lifetime Achievement Awards by the Caples Organisation in New York and Early To Rise in Florida.

2 Comments

  1. And there are serious questions as to why journalism is in trouble? Looks like someone took PR spin without thinking for a moment. Truth is this kind of comparison hurts social media as much as anything… If business folks think the consultants pushing the channel don’t know what they are talking about, they won’t listen.

  2. I’ll find out the straight skinny from some Social Media experts starting May 26th, when Michael Stelzner will host a Social Media Success Summit (http://www.whitepapersource.com/socialmedia2009/).

    Will let you know what all the fuss is about–funny numbers notwithstanding.

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