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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ROI of Paid Digital Media

  1. 1. BERGHS SCHOOL OF COMMUNICATION INTERACTIVE COMMUNICATION! ! ROI & MÄTBARHET! ! ! ! ! ! ! ! ! ! ANTOANETA NIKOLAEVA! ! 15 APRIL 2014
  2. 2. BERGHS SCHOOL OF COMMUNICATION ! ! THE INTERACTIVE COMMUNICATOR’S ! GUIDE TO ! PAID DIGITAL MEDIA! ! ! ! ! ! ! ! ! ANTOANETA NIKOLAEVA
  3. 3. 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
  4. 4. • What can marketers do to end global poverty? ! • How to create a strategy for paid advertising? Key Concepts Planning Timing Evaluating and ROI Agenda
  5. 5. Half the money I spend on advertising is wasted; the trouble is I don't know which half.” ! John Wannamaker, father of modern advertising “
  6. 6. 503 000 000 000 $
  7. 7. 503 000 000 000 $ Global Ad Spent in 2013
  8. 8. 60 000 000 000 $
  9. 9. 60 000 000 000 $ Enough to end global poverty
  10. 10. THE CHALLENGE…
  11. 11. 77% of web display ads are not seen… Source: Sticky
  12. 12. 18%44% 10% Source: www.annons.se/sites/default/files/novus_reklamrapporten_2012.pdf
  13. 13. 18%44% 10% had a positive attitude towards advertising in 2005 Source: www.annons.se/sites/default/files/novus_reklamrapporten_2012.pdf
  14. 14. 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
  15. 15. 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
  16. 16. THE REAL CHALLENGE…
  17. 17. 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/
  18. 18. PAID DIGITAL MEDIA
  19. 19. Digital marketing trifecta Owned media Earned media Paid media
  20. 20. Digital marketing trifecta Owned media Earned media Paid media Web properties! Owned websites Social media channels Email
  21. 21. Digital marketing trifecta Owned media Earned media Paid media Web properties! Owned websites Social media channels Email Sharing! Mentions Shares Reviews SEO
  22. 22. Digital marketing trifecta 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
  23. 23. 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. $
  24. 24. Display Pay per 1000 impressions (CPM) ! Brand awareness Retargeting Dynamic ! Easily ignored ! ! $
  25. 25. Affiliate marketing Cost per action (CPA) ! Low risk High ROI High availability of networks ! Cannibalisation ! ! $
  26. 26. Social media ads Pay 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 ! ! $
  27. 27. 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
  28. 28. PLANNING…
  29. 29. 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
  30. 30. 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
  31. 31. Desired outcome Set 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
  32. 32. Conversion rate ! ! ! Revenue !! Orders!! ! ! Av. order value! Retention! Profit Engagement! ! ! Brand awareness ! Leads ! Subscriptions! Downloads $
  33. 33. Don’t make decision only on vanity metrics:! ! ! Make you feel good but are bad for business action
  34. 34. What KPIs would you suggest for the following campaigns …
  35. 35. CHANNELS
  36. 36. 77% 67% 65% Source. http://www.thinkwithgoogle.com/tools/databoard.html
  37. 37. 77% 67% 65% of television viewers use another device at the same time Source. http://www.thinkwithgoogle.com/tools/databoard.html
  38. 38. 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
  39. 39. 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
  40. 40. Journey to online purchase Source: Google, http://www.thinkwithgoogle.com/tools/customer-journey-to-online-purchase.html
  41. 41. What doesn’t work for others, might work for you!
  42. 42. Multi-channel funnels
  43. 43. TIMING
  44. 44. YOU ARE THE DIGITAL PROJECT MANAGER OF A CHARITY ORGANISATION.! ! …..WHEN DO YOU START YOUR ADWORDS CHRISTMAS CAMPAIGNS?!
  45. 45. 30% Source. think with google 2 weeks September
  46. 46. Donation related searches start to increase. 30% Source. think with google 2 weeks September
  47. 47. Donation related searches start to increase. 30% Source. think with google increase from August to September 2 weeks September
  48. 48. 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
  49. 49. MEASURING SUCCESS
  50. 50. KPIs,KPIs,KPIs! Calculate impact before, during and after advertising Continuously evaluate, test and optimise - keywords, copy, design, landing pages. !
  51. 51. Some cases…
  52. 52. Adwords Type 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 ! ! !
  53. 53. Without branded CPC:
  54. 54. Yahoo DR Type 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 ! ! !
  55. 55. The value of a lead generation campaign Av. Lead Value= (Revenue during Y time frame/ Leads during Y time frame)* profit margin
  56. 56. Model for calculating effect of media buying
  57. 57. TOOLS & TIPS
  58. 58. Online calculations tools http://www.clickz.com/stats
  59. 59. Google Analytics
  60. 60. Don’t forget to tag your campaigns URL Builder: http://goo.gl/cyv2rV
  61. 61. Eye tracking Source: Sticky
  62. 62. Google Consumer Barometer
  63. 63. You are the other 33%!
  64. 64. 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/
  65. 65. THANK YOU!

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