Eli5 How does a huge sum of a company’s money used for marketing really help in the long run?

Question

Eli5 How does a huge sum of a company’s money used for marketing really help in the long run?

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Answer 1

I work in performance marketing – and I like to say that if I can’t prove I’m making you money, and more money than what you’re spending on marketing + me + expenses, fire me.

I’ll sit down and figure out what data needs to be tracked to prove ROI (return on investment). Then we’ll make what’s called a funnel, which is a triangle graph that shows the percentage of people we lose at each step of the marketing process until it becomes a ‘conversion’ or sale.

For one client it would take around $1,500 of marketing and 100 ‘leads’ (filling out an information request form) to generate a sale. But as long as it was under $2,000 per sale averaged across a whole year it was profitable.

The real key to all marketing though is understanding you can’t market pure shit. I can’t sell a stick. I mean unless it’s firewood, then I suppose I could. Point being *someone* has to want it. And you would be extremely surprised at all the weird shit people want…