How to better understand the ROI of ad efforts
- AUTHOR Kristina Knight
- January 25, 2017
- No Comments
While many brands and retailers continue to push budget dollars online, there remain some that don’t understand the ROI of what they do online. Here are three tips that will help brands better understand marketing ROI.
Kristina: Everyone is talking about video and social and other new formats; we aren’t seeing a lot of talk of the ROI of these measures. Why is that?
Bonnie Crater, CEO, Full Circle Insights: It’s somewhat difficult to show ROI from these formats but not impossible. If the interaction is anonymous (e.g. not gated/no form fill) then it’s impossible to show the actual impact on revenue UNTIL there is a response (e.g. form fill). If the individual has been cookied and then responds, then you can gain visibility into previous activity that was once anonymous and show impact on revenue.
Kristina: How can marketers better understand the ROI of their efforts?
Bonnie: Using attribution is the best way to show impact on revenue and ultimately ROI. If your marketing efforts cost less to do than the impact on revenue, you have positive ROI. And clearly, the greater the delta between cost and impact on revenue the better. The key to measuring impact on revenue is to keep the connection between your marketing engagement data and your revenue data, and the easiest way to do that is to automate this connection continuously inside your sales system of record or Salesforce.
Kristina: How can marketers ensure the efforts they put into these have strong ROI?
Bonnie: Continuously use attribution data to determine which campaigns are performing well and weed-out those that aren’t. By taking measure often, marketers can continuously optimize the channels and offers. It’s helpful to also regularly validate findings with your sales counterparts.
Kristina: What are your top 3 tips for marketers to increase ROI?
Bonnie: Measure often and measure to learn. Use the data to optimize your mix – don’t be afraid to adjust several times a year (depending on sales cycle length). Report off a single source of truth shared between sales and marketing (e.g. Salesforce).