What is roi?
Digital marketing is at the forefront of the marketing industry as it is an access point to the industry that is grossing one of the highest incomes in the marketing industry. Roi is an acronym for Return on Investment.
So when looking at this term in relation to the digital marketing industry, it would be in relation to the return of an investment for a digital marketing campaign, for any said company.
It is crucial to know where to look when needing to find these numbers. The easy way out is to simply look at the metrics that tie to your revenue or profits. This would be something that would always reflect well but it is nowhere near to the big picture. To have a true reflection of return you need to look deeper. Much deeper. Finding a true ROI has no easy fix to get the numbers. Looking at conversions is often the go to rooky mistake.
Soft metrics is your golden goose for accurate readings. In things like your natural brand impressions or downloads and site visitors you will start seeing the paint to your painting for the bigger picture.
Looking at, at least three high reach aspects such as
- Native advertising.
- Programmatic advertising.
- Mobile advertising (video).
Native advertising is one of the older forms of digital marketing. It is a safe tried and tested method and is still one of the higher methods used when looking at seamless organic content. When you are looking to provide useful information in a non-invasive or unbranded method then this is a very useful method. Providing adverts to readers that don’t feel like they are being “harassed” by irritating adverts. This provides interest and tips that interest your target market making them want to pay that little bit of attention to see what you have to say.
How to measure the ROI of this advertising method?
Does this method reflect you as a leader in the industry? Are you perceived as a thought leader? If so, this ad method should increase the amount of traffic through to your website. Has it? Look at the comment section on your website and see if any comments relate back to your advert or if they are queries relating to your product.
Recognition of your brand should be a large key to your determining of your ROI in this method. It is easy to determine increase in this aspect as you can go directly to your analytics and see if the traffic you are receiving is directly from your native ad. You can also go to Google trends and see the amount of people searching for your brands.
Finding out if your brand and content is being shared via social media should also be a big go to step in this aspect and you can measure this directly from your social media profile page.
These steps take time but it is well worth it in the end. Your brand reputation is the highest stake in this aspect as you need to consider whether or not your native ads are healthy for your reputation or not. In terms of brand reflection you need to present your company as a trusted expert in the industry. If you have achieved this then look at your number of click-through and customers turning to you for advice from this ad. This should also increase your traffic to your website. When looking at your click – through via your native advertising, look at what turned to information acquisition which can lead to conversion. When wanting to measure this simply take the total number of click through and divide it by the amount of people who submitted contact details e.g. quotations or newsletters.
Programmatic Advertising is specifically targeted advertising that is software created and is often displayed on applications or online websites such as Tubidy or even YouTube. These are called banner ads or side bar ads. Annoying as some may be these are very tailored to specific markets. These would be mainly aimed towards youngsters or business people that are online a lot.
This is a very automated system and generates its own traffic without any interfering from outside sources. This type of advertising will be seen by anyone that goes to these types of popular pages. These ads can be tailored in any way to achieve what you set them out to do. This all being based on factors such as demographic behaviour or even location. Trends have shown that programmatic advertising is best received when it reflects understanding of the specific setting and empathising with the targeted market.
When wanting to measure the ROI of this method, it is found that it is very easy to achieve high results. Tracking the positive and negative feedbacks in relation to the ad, as well, keeping in mind that the longer the ad is in circulation the higher the result would be. It is important to also look at the recognition of your brand in the advert. If your ad has resulted in higher search results for your brand specifically and whether or not your brand is being mentioned more on social media.
If your brand is being received well due to this advert you should also see an increase in traffic to your site. Look at whether this is from a click-through via your advert or a direct URL search. These are two very good indicators for the ROI response to your programmatic adverts.
Mobile advertising has been deemed as the more effective method when looking at the affectivity of mobile ads versus standard web videos. This being on the rise since mobiles have taken over the industry by storm and is now seen as the more intimate way to advertise directly to your market. A well formulated and well placed video can have tremendous impact on your results. This can lead to viral response through mobile sharing on instant messaging and social media. Offering tips and improvement methods are a sure fire way to have a positive response.
Measuring the ROI of this method
This can be tricky to measure as there are numerous ways in which one can measure its success ratio when wanting to measure its ROI. Google trends is often the best way to measure the success, but looking at factors such as click- through via referrals, searches via your hash-tag or direct URL searches can give you a more specific result number.
Looking at accessibility in reference to your ad placement can be a very good way to test whether or not your ad will be received well by your audience. Making sure they will not be a nuisance and will not be hidden by anything else on the page in question on any mobile devices.
In terms of mind share, one would want to look at aspects such as how often people are now discussing the brand with others. You will get a good indication of this by looking at your comment section for the video and by how many people respond with a ‘like’.
The most important factor to look at when measuring the ROI of this type of campaign is the infamous purchase ratio. Finding out whether this type of campaign leads to the purchasing of your items. Have a look at your first touch and multi touch attributes that have been generated solely by this video ad. This will show you a very good reflection of its affectivity in the targeted market. Then have a look at the amount of traffic brought through by the campaign. To have a clear indicator of this campaigns result for your ROI, measure your values before and after the campaign.
It is very important to measure your ROI beyond your revenue impact. Spend some time measuring your vanity metrics as well as your hard metrics. This is a key factor to push your advertising to a whole new level and offers your team a comprehensive way in which to measure affectivity and full engagement thus improving your sales margin considerably.