How can we measure the value of marketing? What is a brand worth?

Too often, large companies wake up to the fact that they make multi-million marketing decision with fewer data and discipline than they apply to thousand-dollar operation decisions in other business areas. The need for increased marketing accountability is strong, yet marketing leaders struggle to measure the value of marketing.
ROI – return on investment – is the holy grail of any business discipline, including marketing. We are in a world of endless marketing channels, innovation, and products, with more being added every day. Influencers on Instagram and Youtube, interactive customer engagement on WhatsApp and Snapchat, and real-time information on Twitter. However, simply using new technologies without a long-term strategy to build strong brands does not create value. What is more important is to understand how efforts across these channels add to the bottom line of the company.

What is marketing’s ROI? Can firms measure their return on marketing? Do firms own marketing assets? Can they measure marketing assets, and if so, how? Has it become easier for firms to do so over time? How should firms report about their most important marketing assets? For instance, Apple Inc.’s brand is worth more than $200 billion; however, it does not show up in the firm’s financial statements. Why does it not show up on the balance sheet, and should it be reported there?

Ataman, B., van Heerde, H., & Mela, C. F. (2010). The Long-Term Effect of Marketing Strategy on Brand Sales. Journal of Marketing Research, 47(5), 866-882.

Batra, R., & Keller, K. L. (2016). Integrating Marketing Communications: New Findings, New Lessons, and New Ideas. Journal of Marketing: AMA/MSI Special Issue, 80, 122-145.

Court, D., Gordon, J., & Perrey, J. (2012, May 1). Measuring Marketing’s Worth. Retrieved from McKinsey Quarterly:

Deloitte Insights. (2016, December 19). The CMO’s Challenge in Driving Growth. Retrieved from The Wall Street Journal:

Feng, H., Morgan, N. A., & Rego, L. L. (2015). Marketing Department Power and Firm Performance. Journal of Marketing, 79(5), 1-20.

Hanssens, D. M., & Pauwels, K. H. (2016). Demonstrating the Value of Marketing. Journal of Marketing: AMA/MSI Special Issue, 80, 173-190.

Joshi, A., & Hanssens, D. M. (2010). The Direct and Indirect Effects of Advertising Spending on Firm Value. Journal of Marketing, 74(1), 20-33.

Mela, C. F., Gupta, S., & Lehmann, D. R. (1997). The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice. Journal of Marketing Research, 34(2), 248-261.

Rust, R. T., Ambler, T., Carpenter, G. S., Kumar, V., & Srivastava, R. K. (2004). Measuring Marketing Productivity: Current Knowledge and Future Directions. Journal of Marketing, 68(4), 76–89.

Srinivasan, S., & Hanssens, D. M. (2009). Marketing and Firm Value: Metrics, Methods, Findings, and Future Directions. Journal of Marketing Research, 46(3), 293-312.

Mit UnterstĂĽtzung von

Scientific Partner:

Supporting researcher:

Simone WiesSimone Wies is an Assistant Professor (SAFE Junior Professorship for Marketing and Finance) at Goethe University Frankfurt. Prior to joining Goethe University, she held a Post-Doctoral research position in Marketing at the Fuqua School of Business, Duke University. She received her MS.c and Ph.D. in Finance from Maastricht University. Simone Wies’ research centers on the interaction of capital markets and managerial decision-making.

YES! topics of Simone Wies

Go to Top