To assess the value of advertising, marketing executives often look to a KPI called the Return on Ad Spend (ROAS). At LinkedIn, where I last worked, ROAS was the KPI that the Digital Advertising Team and the executives that approved their media budget, used to make decisions. They measured ROAS, reported, reviewed, scrutinized and used it as the catalyst for determining how much they would be willing to invest in advertising.
Through all of this, I began noticing that by calculating, forecasting, and reporting ROAS, the Digital Advertising team was often able to successfully argue for additional budget. Of course, sometimes the ROAS wasn’t in their favor, and as a result the budget could be reduced or paused.
The thing that impressed me was their ability to gain consensus and influence leaders to make investment decisions quickly. And making decisions is the key to driving action and making progress.