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Collegiate ECHO Budget & ROI
- The campaign budget for the Collegiate ECHO Challenge is established by the client or sponsor. It is important that the teams allocate the budget, yet do not go over the budget limit.
- In direct and interactive marketing, an old saying still rings true: “It’s not creative unless it sells!” Collegiate ECHO campaign proposals must demonstrate how a campaign will earn revenue and recover the campaign costs.
Elements to Include
- A detailed budget showing how the budget has been allocated must be prepared and included.
- All campaign costs should be detailed.
- Support documentation should be provided for cost estimates.
- If costs were calculate an explanation of the formula used should be described.
- Campaign breakeven calculations, campaign response rates and ROI must be presented.
- Student teams are wise to project a low, medium and high response rate to their campaign and provide quantitative scenarios for the campaign ROI at each rate of response.
- Students should use both secondary and primary research to defend response rates. Rates should be developed based on the quality of the plan, DMA response history, others’ response history and realistic judgment.
- Clear and concise, yet revealing bullet points may be used to communicate much of the content in this section.
- A budget table can be created to visually show all budget allocations. (See Exhibit F).
- A ROI table can be created to visually show the campaign profitability at the low, medium and high rates of response. (See Exhibit G).
Exhibit F: Budget Table
Exhibit G: ROI Table
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