“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

- John Wanamaker

I can’t stand that quotation.

Even today, it is bandied about as though it has any meaning in the current world of (online) marketing. It contained some truth when it was first said, but today it just identifies the lazy marketers in our midst.

Why the vitriol? It’s because almost everything is becoming measurable. Now, there is no reason to claim ignorance to analytics – we are swimming in data.

But that might be the problem. As the recession continue to apply pressure to all industries (and on advertising and marketing more than most I would venture) there is a redoubled focus on return on investment (ROI).

And this is wonderful. The online channel is made to justify advertiser’s investments. But the advent of social media has thrown a monkey wrench of sorts into the works. How do we define ROI in a web 2.0 world? How has the landscape changed and how can we plan for tomorrow?

(more…)