The beef checkoff is commissioning two third-party evaluation studies this year, both aimed at leverage every checkoff dollar to the greatest degree possible. The follow-up studies to the 2013 Beef Demand Determinant Study results will include a Return on Investment (ROI) Study and an Efficiency Analysis, both of which are being completed within the FY2014 checkoff evaluation program budget.
The ROI study is something that USDA requires of every research and promotion program at least every five years. Dr. Ron Ward of the University of Florida completed the last checkoff ROI study for the Beef Board in 2009. He used a comprehensive econometric model to conclude that, for every dollar invested in the Beef Checkoff Program, producers received $5.55 in value back, which amounts to an ROI of 555 percent.
This year’s study is being done by Dr. Harry Kaiser, a nationally recognized expert in the economics of generic advertising and promotion programs. His methodology varies from the checkoff's previous ROI studies in that it delves deeper into specific areas of investment rather than simply delivering an average ROI.
Hand-in-hand with the ROI study, and using data generated by Dr. Kaiser, the second study is being conducted by Dr. David Rockland, CEO and managing director of Ketchum Change and Global Research Group.
This efficiency study will identify common key metrics to determine how each individual program affects beef demand. The study comprises two parts: a performance-efficiency analysis and a cost-efficiency analysis, and it will help identify metrics (e.g., percent target audience reached with demand-driving messages) to enhance development and tracking of performance trends for checkoff programs in coming years.