roi of paid digital media
DESCRIPTION
A lecture at Berghs School of Communication on the topic of of Paid Digital Media.TRANSCRIPT
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 : [email protected] 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
Google Analytics
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!