📓 The Creativ Brief: What is Return on Investment (ROI)?

“You have to spend money to make money.”

Coined by Roman playwright Maccius Plautus in 200 BCE, the phrase has become enshrined in business lore ever since.

Investing dollars to grow future revenues, now known as return on investment or ROI, still represents the most critical concepts to business success.

In marketing, the concept holds sacred weight. Marketing dollars should always lead to attributable revenue gains from corresponding increases in sales.

The trouble with sales returns is tracing them to their point of investment origin.

As advertisers demand better attribution, marketing has become more and more technical. Point of purchase, the moment when a sale occurs, has been given inordinate weight in the market mix as a result.

This is because point of purchase, whether in retail, online, or via sales representatives, can be directly attributed to a conversion moment. However, that return rarely originates at the point of purchase. People don’t buy things on first encounter.

The reality of what leads a customer to a point of purchase is a coordinated marketing effort to inject confidence into a buying decision.

A web of information that ensnares a potential customer's attention, drawing him or her down the funnel to an ultimate purchase. This includes reviews, advertising, third-party testimonials (PR or creators), promotions, and trusted recommendations.

Investments never pay out immediately. They are forward looking actions which pay dividends later.

This delayed gratification makes forward investments difficult, whether in business operations, people, marketing, or finance. It requires bravery. Yet, a return on investment creates sustainable and consistent growth in a target market. Failing to do so causes business stagnation.

You’ve got to spend money to make money. Invest in yourself, your people, products, and marketing. It’ll pay dividends down the line.

3 Stories Dominating Media and Tech Headlines

Comcast announced plans to spin off NBCUniversal's cable networks and select digital assets into a new publicly traded entity called SpinCo, focusing NBCU's efforts on high-growth areas like streaming and entertainment.

The spinoff will include networks such as USA, CNBC, and MSNBC, alongside digital platforms like Fandango, but exclude flagship properties like NBC and Telemundo, while Bravo and Peacock remain part of NBCU's core portfolio.

Why it matters: This is the first major media company to announce the spin off of it’s legacy cable assets. We guarantee others like Disney, FOX, and WarnerBros Discovery are soon to follow. Cable networks, which still generate significant cashflow, will be sold to PE firms which will milk them for the remainder of their life cycle. Meanwhile, media companies will use the acquired capital to reinvent streaming TV growth. 

Warner Bros. Discovery has settled its legal disputes with the NBA and agreed to end its 40-year relationship as a carrier of live NBA games in the U.S., with Disney, NBCUniversal, and Amazon Prime Video taking over as media partners starting in the 2025-26 season.

The settlement grants Warner Bros. Discovery rights to highlights for Bleacher Report and House of Highlights, a continued NBA Digital partnership, and international live game rights in select regions, while “Inside the NBA” will be licensed to Disney platforms but remain produced by TNT Sports.

Why it matters: This shift reflects the NBA’s broader strategy to embrace streaming and broadcast platforms that can better engage younger audiences, underscoring the ongoing evolution of sports media distribution in the face of cable TV’s declining influence.

Maurizio Cattelan's conceptual artwork Comedian, featuring a banana duct-taped to a wall, sold for $6.2 million at a Sotheby’s auction, solidifying its place as both an art market sensation and a cultural phenomenon. The piece, originally conceived as a satire of art market speculation, has drawn attention for its absurdity and commentary on value, with its new owner, crypto entrepreneur Justin Sun, planning to eat the banana as part of an artistic statement.

Why it matters: In a world where absurdity and spectacle increasingly dictate cultural and financial trends, the sales of a $6.2 million banana taped to a wall demonstrates that marketing hype dictates art sales… full stop.

Creativ Spotlight - AI Camera from SGx at Flux Festival

Join us for the Flux Festival on Saturday, Nov. 23, in Los Angeles!

This inaugural event brings together creativity, technology, and storytelling, featuring groundbreaking innovations in film, art, and emerging tech.

SGx CEO Miguel Espada will present a live demo of the revolutionary CMR M-1, the world’s first AI-powered movie camera.

Creative Director Lucas Ortiz Estefanell will showcase his stunning film La Fênetre, a 10-minute documentary exploring the creation of images through Artificial Intelligence.

Don’t miss your chance to experience the future of storytelling!

Check it out HERE!!

Stat of the Week - Enterprise Marketers Are Prioritizing Large-Scale Influencers

Chart by Miles Mahoney

Macro influencers remain the most preferred choice for enterprise marketers, with 81% in 2023 and 68% in 2024, followed closely by a rise in interest in mega influencers, increasing from 48% to 60%.

According to this study, marketers report a decline in interest in working with nano and micro influencers.

Brands are putting more dollars towards raising brand awareness, loyalty, and conversions through high-impact, talent-centric campaigns to maximize reach and exposure. While larger influencers are pricier, brands are finding that association with them generates meaningful brand exposure.

One Fun Thing - Merry AI Christmas with Coke!

Coca-Cola’s AI Christmas ad made waves for being universally detested by consumers. What do you think? Creepy uncanny valley or Christmas magic?!