Ad agencies struggle to prove their return on investment

Tags: Advertising, Marketing

It's a tough world out there. Reuters today notes that advertising executives today are struggling as never before to prove to their clients that their work building brands has real value. Apparently this was the center of a large discussion at the International Advertising Festival in the south of France, which regardless of the discussion, is a location guaranteed to raise the eyebrows of any CFO. The president of the association got Blackfriars award for understatement though:

The search for a workable return on investment formula has instituted a worrying degree of paralysis," said Michael Lee, president of the International Advertising Association. "Everyone is being sensibly hesitant, but what we need is progress, not paralysis."

But June Blocklin, vice-chairman of WPP's Young & Rubicam Brands, gets kudos for accepting the challenge.

"Just because something is tricky to measure doesn't mean it doesn't have value," she said. "Demands for ROI (return on investment) should be present in our business. I certainly think creative should be held accountable."

Added Berlin: "It can't be great advertising if it doesn't have impact on the market. It's not just a question of sitting down and having a great idea."