ROI
The Progression of Ad Cost & Measurement
The cost and measurement of advertising has changed over the years. Traditional advertising was all about eyeballs and the cost of it was based on how many people were “expected” to see the ad. I emphasize “expected” because traditional media channels were not able to track exactly how many people saw an ad.
Now, with the online medium, advertisement pricing and measurement are beginning to reflect the changing environment of consumer behaviour. People are no longer passively consuming information, they are reacting and taking action on information they see online.
Advertising goals are not just about eyeballs anymore. They are about a higher level of interaction, a stronger conversion measure, a profitable action.
It was a giant step when the cost per click model for online advertisement pricing was introduced. Advertisers were only charged when users clicked on an ad.
The next step forward is the pricing models being adopted by social media platforms. These pricing models make a closer connection between the cost of the ad and the goal of the advertiser.
For example, as of May 25, 2011, YouTube “will change the billing terms of all Promoted Videos campaigns from a Cost Per Click (CPC) basis to a Cost Per View (CPV) basis”. This means the promoted video ads will only cost the advertiser money if someone views the video.
Furthermore, the launch of Twitter’s Promoted Products also include unique pricing models. Promoted Tweets, for example, are charged on a cost per engagement (CPE) basis where advertisers only pay when users retweet, reply to, click or “favorite” a promoted tweet. On the other hand, Promoted Accounts are charged on a cost per follower (CPF) basis, which means advertisers are only charged when a user follows their account.
These pricing models help advertisers more accurately measure the return on investment. Gone are the days where advertisers are only looking for eyeballs. Measure everything you do to determine the best course of action.
Victor
Photo Credit: Nesster
Tags: advertising, cost, measurement, ROI, Twitter, youtube
ALERT! 5 Steps To Creating and Maintaining A Successful Online Presence
I’m an information junkie. I read almost everything I can get my eyes on if it relates to a topic of interest – social media, television, online marketing, cooking, travel, raising a toddler. Of course the problem is, there’s way more information than there is time.
A similar challenge faces businesses today. There are far more online marketing opportunities than time and money to support them. On one hand, it’s an embarrassment of riches. On the other, it’s a pain in the posterior for businesses trying to decide which tools will deliver the greatest ROI.
When I step into a bookstore, sometimes I “lose it.” My pulse quickens as I roam from section to section grabbing books I want to read that instant. Many of these books litter my home office waiting for me to crack their covers. The reality is, I can’t get to them all, just like I can’t get to every blog, forum and tweet.
Some businesses are “losing it,” too. I’m watching as they dabble with Twitter, Facebook, blogs, social bookmarking, and shiny apps that grab their attention. Trouble is, companies sometimes sew the seeds and forget to water them. They sit dormant, like my stacks of books.
For some reason, quite likely a combination of reasons actually, businesses are experimenting online without applying much thought or resources. When it comes to building an online presence, I’m all for experimentation. In fact, it’s necessary. But, that doesn’t mean playing fast and loose with your brand.
Perhaps it’s because many CEOs still dismiss the Internet as a frivolous frontier where their teenagers hang out and play games, where singles search for mates, serious types read news, and a whole lot of people watch porn. Perhaps, when it comes to engaging customers online, the barriers to entry are so low and so unregulated that it’s too far outside the costly and complex world of traditional marketing and advertising to make these opportunities seem credible … or comfortable. Whatever the reason, after fifty years of business obsessing about brand, it is remarkable that so many companies are throwing caution to the wind and jumping online without so much as a whiff of a plan.
That’s why we created A.L.E.R.T. It’s an acronym that spells out the five steps to creating and maintaining a successful online strategy. It’s a philosophy and for the Magnify team, a comprehensive system.
The core concept goes like this …
A.L.E.R.T. – ASSESS. LOCATE. ENGAGE. RESPOND. TRACK.
Assess – You need to know where you stand before you can figure out where you are going. This stage is all about figuring out what people online are saying about your brand, product or service, and what the conversations are about your competitors. It usually means paying attention to how users are finding and interacting with your website, too. And the websites of your competitors.
Locate – Where is your audience hanging out online? Once you start to find them, listen. Learn where they cluster, what matters to them, and how they like to engage in terms of platforms and communication style.
Engage – This is literally and figuratively the pivot point. It’s the most creative and often the most comprehensive part of the plan. How are you going to engage your target market? A paid advertising campaign? A simple blog? An aggressive Twitter and Facebook strategy? Quirky or eye-popping video? Games? Quizzes? All of the above? Whatever the plan, ensure you have the resources to make it thrive.
Respond – Listen more than you speak. It’s not a bad mantra for life and a darn good rule of thumb online. Monitor what is being said about your brand online. When someone asks a question, offers a compliment or throws a flame, a timely and authentic response can go a long way toward turning feedback into opportunities and critics into champions.
Track – Be sure to track your results each month. Dig into Google Analytics, Hootsuite, and the myriad other free monitoring tools. The only way to ensure ROI is to pay attention to the trends. Tweak the initiatives that aren’t working and amp up the ones that are.
Whether your company sells shoes or dreams, this process will help you build and maintain a successful online presence. It pays to be ALERT!
- Moyra
Tags: Business, facebook, internet marketing, online marketing, ROI, Social Media, Twitter
How to measure Social Media ROI? (Part 1)
Marketing campaigns can sometimes become very expensive. For this reason, it is important to calculate if the campaign brings you customers or new sales and if you’re making any money out of it. This is standard for traditional media in most businesses. However, when it comes to social media, most don’t calculate the return on investment (ROI) of their efforts.
I think the biggest reason businesses don’t track their efforts is because of the lack of tools and standardized metrics. Here are some ideas of what can be used to get meaningful results.
First, you need to set objectives. It is unlikely that you would want to put money into something that wouldn’t be profitable. The goal could be revenue (sales), new members, exposure, etc. What is important to know is how much money a new member or a published article will bring your company.
For example, let’s say an average member who found your website on a social media website spent $10 on your products, you can extrapolate the ROI by calculating how much money needs to be spent to acquire one member based on previous campaigns. Then just make sure it’s profitable!
To be continued…
eMarketing Strategist
Tags: e-marketing, ROI, Social Media
