How Can the Automation of Common Marketing Save your Money?

LAWS OF ROI FOR INFORMATION TECHNOLOGY

‍

A comprehensive survey by HIVO of IT projects, their costs, and their payback reveals that 80 percent of productivity gains derive from less than 10 percent of a system’s functionality. This same research supports the conclusion that a financial analysis of a small set of worker activities automated by technology can often justify an entire DAM deployment’s costs from direct cost savings and efficiency gains in the first 12 months of operation.

‍

ENTERPRISE BENCHMARKS

‍

HIVO uses a baseline set of data that corresponds to a typical enterprise with $1B in annual sales. This baseline assumes that the firm spends an average of 2.3% of gross sales in marketing related activities (advertising, promotion, public relations) and generates at least 35 percent of sales from international markets. This pro forma enterprise launches at least 20 new products into 24 localization regions (demography, language, currency, culture) and represents a fast revenue-cycle business– one that would lose at least one percent of quarterly revenue if all advertising and promotion were absent.

‍

The activity and payback benchmarks used in this report primarily correspond to global brands, as opposed to businesses in advertising, entertainment, media, or publishing - businesses that produce media-based products or services as a primary source of revenue. Advertising, entertainment, media, and publishing firms have much higher levels of activity in media production and higher levels of digital asset reuse. As a result, these types of firms achieve payback for DAM and related media services more quickly.

‍

TARGETING HIGH IMPACT AUTOMATION CELLS

‍

HIVO’s’ research supports the conclusion that the automation of just a few activities within the media value chain produces significant cost savings and time-to-market gains, often proving ROI and garnering further investment in DAM.