forbes.com | http://goo.gl/tSdIV
But the new ROI of marketing goes even further than investments and impressions. It also encompasses return on engagement, objectives, and opportunity. Today, people share information via the social web faster and more frequently than ever. Traditional ROI analysis is just the tip of the iceberg. The really interesting part of the story is what happens beneath the surface of the water. The hard metrics related to return on investment barely touch the surface.
Return on Impression = Eyeballs Seguir leyendo “Understanding the New ROI of Marketing”
Statistics vary, but overall RTB made up about 10% of the overall UK display advertising in 2011.
While this is predicted to grow rapidly during 2012, there is a feeling that ad exchanges still need to convince marketers of the benefits of investing in RTB.
On the face of it, the positives are obvious: it allows advertisers to set the price they are willing to pay to target specific users.
Which, in theory, results in better ROI. However, critics of RTB suggest that it can be too complicated, results in inflated prices and is really just a way for publishers to sell off unwanted ad space.
To find out more about how RTB works I spoke to Sue Hunt, EMEA Director for Yahoo’s Right Media Exchange.
RTB seems like a great deal for advertisers and publishers. Why is the industry still fairly small?
The expected growth in RTB spend this year in Europe is likely to follow the same trend as in the US last year – 140 to 150% growth year on year.
Publishers have long worked with platforms (exchanges or SSPs) or networks to improve their revenue, and we are seeing the large agency and independent trading desks really gathering momentum now too. Seguir leyendo “Q&A: Yahoo’s Sue Hunt on real-time bidding”
Communities are bullsh*t. That’s right, I said it. Go ahead … think about that Twitter page you manage. Consider the amount of time it took you to build your first 100 followers, let alone your first 1,000. You are feeling pretty high about your ability to grow a “community”, aren’t you? I hate to burst your bubble, but for all your efforts (I know the hard work firsthand) how much is that “community” affecting your brand’s bottom line? Chances are, not a whole lot.
For most Social Media professionals, the dreaded words “Return On Investment” are difficult to explain. Time-and-time again, I’ve read blogs and watched videos of people talking above the clouds with fluffy words like “brand awareness,” “community,” “curate” and “conversation.”
A popular response to people requesting the ROI of a community management campaign is, “it’s difficult to show the ROI of a conversation.” I completely agree with that statement, because there is none.
Recently, Mashable posted an article that stated 51% of consumers are more likely to buy from a brand that they follow / like. Well duh! Was that really news to any of you? If you like or follow Subway, it is likely because you first tried a Subway sandwich – not the other way around. Seguir leyendo “Communities are Bullsh*t”
The fundamental part of marketing is to generate more money than you spend; to deliver a return on investment (ROI). This can be part of a sophisticated, long-term, multi-faceted marketing campaign, or a simple direct marketing campaign. Regardless of the campaign size, conversions are critical and ROI essential.
Digital marketing is no different. Digital campaigns should be focused around delivering a substantial ROI. The only way to achieve this is by having a clear conversion that you can measure on your site, and deliver a CPA (cost per acquisition) lower than the value of the conversion.
This sounds obvious; however 90% of websites fail to achieve this. Instead, generic, simple brochure style websites without sufficient call to actions are the norm. Unsurprisingly when digital campaigns are set-up, that solely drive traffic to these sites, they are unsuccessful. Simply driving targeted traffic to your site and hoping for results is a recipe for disaster. Targeted traffic will not convert if there is no conversion! This applies for both B2C as well as B2B industries. Seguir leyendo “Focus on online conversions, not visitor numbers”
Here’s a question for you: would you agree that creating a great user experience should be the primary aim of any Web designer? I know what your answer is… and youʼre wrong!
Okay, I admit that not all of you would have answered yes, but most probably did. Somehow, the majority of Web designers have come to believe that creating a great user experience is an end in itself. I think we are deceiving ourselves and doing a disservice to our clients at the same time.
The truth is that business objectives should trump users’ needs every time. Generating a return on investment is more important for a website than keeping users happy. Sounds horrendous, doesn’t it? Before you flame me in the comments, hear me out. Seguir leyendo “Business Objectives vs. User Experience”
With the recent advancement and diversification in online marketing strategies, some might think that email marketing is a relic of the past; but the numbers tell a different story. Not only is marketing via email a cheap alternative to other forms of direct marketing, but the ROI is also exceptionally high – giving marketers the best of both worlds. Here is a look at the email marketing industry, and why it might be the right marketing option for your business.
Citing a recovering economy and increasing marketer interest in the space, research company eMarketer recently raised its 2010 spending forecast for advertising on social networks by nearly 30% to $1.68 billion domestically.
Within the social media world, however, a number of trends are dictating how, why and where money gets spent — trends that will push the industry past the $2 billion mark in 2011, according to eMarketer’s projections.
A Snowball Effect at Facebook
Not surprisingly, the biggest beneficiary of the current euphoria around social is Facebook (), with several estimates now pegging the company’s 2010 revenue at better than $1 billion. That growth is being fueled in part by what some advertisers see as competition to scoring prime advertising space on the site.
“Most of our clients see a real need to spend a lot on Facebook ads … the amount of dollars other brands have spent has forced spends up overall,” says Andrea Wolinetz, a partner at MEC Global, which represents the likes of Ikea, AT&T, and Citi. “There’s so much noise and clutter on Facebook now, that spending a good deal has become important in order to be heard.”
There’s also a growing sense that social media advertising can deliver a return on investment. Neil Kleiner, head of social media at Havas Media UK, says “We’ve found advertising on social networks to be very effective, but mainly as a part of a larger piece of activity that involved more ‘traditional’ social media techniques … ads on social media work best when they drive interaction and engagement. Interaction and engagement can then drive purchase.”
Twitter’s Experimental Phase
After years of fielding questions about how it plans to make money, Twitter () has launched numerous experimental business models over the past several months. At the forefront is Promoted Tweets, a program that inserts a brand-sponsored topic into Twitter’s “trending topics” list and presents a tweet from that sponsor to users, in hopes of generating retweets, replies and other forms of engagement.
Early testers of the program include Virgin America and Coca-Cola, the latter of which reported 86 million impressions and an “engagement rate” of 6% back when it used the program in June during the World Cup. More recently, the online brokerage firm Zecco reported that engagement on its promoted tweets was 50% higher than its regular tweets, with “200 to 300% increases in some cases.”
Case studies are still limited, though. Kleiner says, “Promoted Tweets have not seen that much traction [with my clients],” though he sees an opportunity to “add real value to a long tail of advertisers.” For the moment though, that long tail is mostly left out of Promoted Tweets, as the program remains in limited beta.
As the program sees public rollout later this year, the results could be significant for Twitter and advertisers. In its report, eMarketer wrote that it expects “spending on the microblogging service [to] be low in 2010,” but adds that, “the potential for 2011 and beyond could be dramatic if it proves that its ‘resonance’ model of measuring advertising effectiveness works.”
Location Excites Marketers, Maybe More than Consumers
The latest extension of social — knowing not just what your friends are doing but where they’re doing it — is one of the hottest trends of the year.
The field collectively referred to as “location” has marketers from Starbucks to Best Buy excited about the possibilities of increasing foot traffic through programs that reward customers for “checking in” and sharing their location and brand affinity with their friends.
That said, such programs are largely experimental, and many of the startups in the space lack the critical mass to significantly move the needle for big brands. “Foursquare is the buzz word on a lot of people’s lips,” says Kleiner, “but it has such a comparatively small audience that are niche to the point of incestuous. It’s mainly used by people that work in marketing, not ‘normal’ people.”
Still, getting started in the location realm requires less of an investment than competing for space on Facebook, says Wolinetz. “We spend a lot of our time testing and focusing interest in location-based services and Twitter, as our clients are eager to ‘master’ these emerging platforms, and [they] generally require less of a paid media investment than Facebook does.“
Kleiner concedes that he’s bullish on the potential of Facebook getting into location with the recent launch of Places, though the tools aren’t yet there for advertisers. “We will have some real mass to play with when Facebook allows advertisers to buy against location,” he said.
Social No Longer Sits at the Kids’ Table
While the market sorts out the winners and losers from a platform perspective, one thing that’s becoming clear is that social — which eMarketer estimates will account for 6.7% of total online ad spend this year — is being thought of in a much broader light than even the increasingly optimistic projections show.
“Social campaigns used to be more siloed from the rest of the communications and marketing strategies,” says Wolinetz, “but now we’re seeing social as either an extension of an overall activation idea that occurs throughout other media outlets, or conversely, the marketing/communication strategy is at its heart and inception social, and we’re using other media outlets to drive awareness and scale.”
And while that might mean social’s share of ad dollars is still relatively small, its importance within organizations is as high as it has ever been. “The biggest shift for us is that we are now seeing brands move away from pure campaign planning altogether and are allowing social media to be the bedrock for a 24-7, 365 days a year chance to engage their customers,” says Kleiner.
With increasing interest in social media marketing among advertisers, we’re excited to see where the industry will go in the next year. Let us know your thoughts on the topic in the comments below.
Internal IT innovation is all about converting ideas, those specifically supported by new technologies, into business value. These innovations often focus on needs such as improved internal processes or alternative and creative ways to support market activities. Four years into leading PwC’s IT innovation efforts, I’ve certainly observed enough of what works and what creates challenge to write a book on the subject. For this blog posting I’m going to briefly discuss an element of what I’ve experienced. It’s what I will call the 3 tensions of internal IT innovation. Seguir leyendo “The 3 Tensions of Internal IT Innovation”
by Stefan Lindegaard
What is the ROI – return on investment – for companies engaged with open innovation? I can imagine that many executives ask this question as they seek out more proof that open innovation is worth doing.
Truth told, there is much talk about the ROI, but it is very difficult finding solid documentation on the value of open innovation. I tried, but not much luck. This is a short list of cases on the topic. Seguir leyendo “The ROI on Open Innovation: Call for Cases”