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Catena Company supports brand owners who want to create, manage and communicate their own visual marketing materials.

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Digital Asset Management

A good Digital Asset Management (DAM) system makes all files available and searchable.

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Digital Data Publishing

With Digital Data Publishing, you accelerate the creation process of your marketing materials and do so efficiently, error-free and scalably.

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Customized Automation

Through customization, middleware solutions can be developed that provide the missing link between different 3rd party systems.

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Omnichannel publishing

Build your story in one place, publish it on a variety of media types. From a central content system publish texts, photos, videos with 1 click of a button to your website and more.
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18 March 2024

The difference between ROI and TCO: Why it matters to you

Joska Fleerackers
Marketeer bij Catena Company

During the business decision-making process, ROI and TCO are two important terms often used to evaluate whether an investment is worth it. Although both terms are related to finance, they focus on different aspects of an investment.

Specific example

Suppose your company invested €10,000 in new marketing campaigns and this investment resulted in a €20,000 increase in sales. Your ROI would then be calculated as follows:

ROI = ((€20,000 – €10,000) / €10,000) x 100% = 100%

This means that your investment of €10,000 resulted in a profit of 100%.

 

Specific example

Let’s take the example of the previous marketing investment. In addition to the initial €10,000 investment, you also spent €5,000 on ongoing advertising costs and €2,000 on maintenance and monitoring during the year. The TCO of your investment would then be calculated as follows:

TCO = €10,000 + €5,000 + €2,000 = €17,000

This means that the TCO for this marketing investment is €17,000.

 

Are you about to make a major decision for your content creation process and would you like to know which solution will give you the best ROI? Then don’t hesitate to request our content scan. In this scan we map out your current content creation process and propose solutions that will significantly improve your ROI.

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