ROI of Paid Digital Media

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A lecture at Berghs School of Communication on the topic of of Paid Digital Media.

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BERGHS SCHOOL OF COMMUNICATION

INTERACTIVE COMMUNICATION!!

ROI & MÄTBARHET!!!!!!!!!!

ANTOANETA NIKOLAEVA!!

15 APRIL 2014

BERGHS SCHOOL OF COMMUNICATION

!!

THE INTERACTIVE COMMUNICATOR’S !GUIDE TO !

PAID DIGITAL MEDIA!!!!!!!!!

ANTOANETA NIKOLAEVA

Who: Antoaneta What do I do : Analyse and optimise Where: Aftonbladet Past: Outfox Consulting, DT Group !Email me : anikolaeva@gmail.com Link me: linkedin.com/in/anikolaeva

• What can marketers do to end global poverty? !

• How to create a strategy for paid advertising? Key Concepts Planning Timing Evaluating and ROI

Agenda

Half the money I spend on advertising is

wasted; the trouble is I don't know which half.”

!John Wannamaker, father of modern advertising

503 000 000 000 $

503 000 000 000 $Global Ad Spent in 2013

60 000 000 000 $

60 000 000 000 $Enough to end global poverty

THE CHALLENGE…

77% of web display ads are not seen…

Source: Sticky

18%44% 10%

Source: www.annons.se/sites/default/files/novus_reklamrapporten_2012.pdf

18%44% 10%

had a positive attitude towards advertising in 2005

Source: www.annons.se/sites/default/files/novus_reklamrapporten_2012.pdf

18%44% 10%

had a positive attitude towards advertising in 2005

with a positive attitude towards advertising in 2012

Source: www.annons.se/sites/default/files/novus_reklamrapporten_2012.pdf

18%44% 10%

had a positive attitude towards advertising in 2005

with a positive attitude towards advertising in 2012

with a positive attitude towards mobile advertising in 2012

Source: www.annons.se/sites/default/files/novus_reklamrapporten_2012.pdf

THE REAL CHALLENGE…

67% !of marketers today don’t believe marketing ROI requires a financial outcome

Source: WARC, the World Advertising Research Center

https://www.fournaisegroup.com/marketers-not-trained-in-marketing-performance-and-roi/

PAID DIGITAL MEDIA

Digital marketing kit

Owned media

Earned media Paid media

Digital marketing kit

Owned media

Earned media Paid media

Web properties!Owned websites Social media channels Email

Digital marketing kit

Owned media

Earned media Paid media

Web properties!Owned websites Social media channels Email

Sharing!Mentions Shares Reviews SEO

Digital marketing kit

Owned media

Earned media Paid media

Web properties!Owned websites Social media channels Email

Advertising!PPC Display Affiliates Social media ads Content promotions Video advertising

Sharing!Mentions Shares Reviews SEO

Search engine marketing (SEM)

Pay only for the click (PPC) !!Short time to market Reach Control over audience Control over budget Flexible !Competition can be high.

$

DisplayPay per 1000 impressions (CPM) !Brand awareness Retargeting Dynamic !Easily ignored !!

$

Affiliate marketingCost per action (CPA) !Low risk High ROI High availability of networks !Cannibalisation !!

$

Social media adsPay per click (PPC) or optimised impressions(oCPM) !!Targetable Control over budget Flexible Increase fan and follower base Beneficial for word of mouth !Wrong advertising can easily backfire !!

$

Key terms to know• PPC - Pay per click

• SEM - Search engine marketing

• CTR - Click through Rate

• CPA - Cost per Action

• CPC - Cost per Click

• CPM - Cost per mille - thousand ad impressions

• oCPM- Cost per mille - thousand ad optimised impressions

• ROI - Return on investment

• KPI - Key performance indicator

• QS - Quality score

PLANNING…

An online paid advertising strategy is a plan of action to achieve a goal with the help of digital advertising tools

Who, What, When, Where,How

An online paid advertising strategy is a plan of action to achieve a goal with the help of digital advertising tools

Specific, Measurable,Time-related

Desired outcomeSet clear, specific and time based goals and KPIs for the campaign that are connected to your digital and business objectives.

Key Performance Indicator: a quantifiable measure used to compare performance in terms of meeting the strategic and operational goals

Conversion rate ! ! !

Revenue !!

Orders!! ! !

Av. order value!

Retention!

Profit

Engagement! ! !

Brand awareness !

Leads !

Subscriptions!

Downloads

$

Don’t make decision only on vanity metrics:!

!!

Make you feel good but are bad for business action

What KPIs would you suggest for the following campaigns …

CHANNELS

77% 67% 65%

Source. http://www.thinkwithgoogle.com/tools/databoard.html

77% 67% 65%

of television viewers use another device at the same time

Source. http://www.thinkwithgoogle.com/tools/databoard.html

77% 67% 65%

Start shopping on one device and continue to another

of television viewers use another device at the same time

Source. http://www.thinkwithgoogle.com/tools/databoard.html

77% 67% 65%

Start shopping on one device and continue to another

of television viewers use another device at the same time

of total revenue comes from purchases made in more than one step

Source. http://www.thinkwithgoogle.com/tools/databoard.html

Journey to online purchase

Source: Google, http://www.thinkwithgoogle.com/tools/customer-journey-to-online-purchase.html

What doesn’t work for others, might work for you!

Multi-channel funnels

TIMING

YOU ARE THE DIGITAL PROJECT MANAGER OF A CHARITY ORGANISATION.!!…..WHEN DO YOU START YOUR ADWORDS CHRISTMAS CAMPAIGNS?!

30%

Source. think with google

2 weeks

September

Donation related searches start to increase.

30%

Source. think with google

2 weeks

September

Donation related searches start to increase.

30%

Source. think with google

increase from August to September

2 weeks

September

Donation related searches start to increase.

30%

Source. think with google

increase from August to September

1 in 3 donors spend over 2 weeks researching before making a donation2 weeks

September

MEASURING SUCCESS

KPIs,KPIs,KPIs!

Calculate impact before, during and after advertising

Continuously evaluate, test and optimise - keywords, copy, design, landing pages.

!

Some cases…

AdwordsType of organisation: Online retailer

Goal: Increase of orders and revenue

KPIs for the campaign: CR, Revenue,ROI

Channel: Adwords

Time: Continuous optimisation

Other drivers: Brand awareness, relevant traffic

!

!

!

Without branded CPC:

Yahoo DRType of organisation: Software provider

Goal: Increase of leads , Sign up for the freemium service

KPIs for the campaign: Sign ups,CR & ROI

Channel: Yahoo DR

Time: September 2013

Other drivers: Relevant traffic, Retention

!

!

!

The value of a lead generation campaign

Av. Lead Value= (Revenue during Y time frame/ Leads during Y time frame)* profit margin

Model for calculating effect of media buying

TOOLS & TIPS

Online calculations tools

http://www.clickz.com/stats

Google Analytics

Don’t forget to tag your campaigns

URL Builder: http://goo.gl/cyv2rV

Eye tracking

Source: Sticky

Google Consumer Barometer

You are the other 33%!

33% !of marketers today know that marketing ROI requires a financial outcome.

Source: WARC, the World Advertising Research Center

https://www.fournaisegroup.com/marketers-not-trained-in-marketing-performance-and-roi/

THANK YOU!