RETURN ON MARKETING INVESTMENT . JUNE 2012. A BIT ABOUT ME . MEDIA PLANNER DIGITAL MEDIA STRATEGY ADVERTISING . My objectives . Get you to rethink the value and process of marketing and how you look at the measurement of marketing inputs . Consider getting into the habit of measurement .
A BIT ABOUT ME MEDIA PLANNER DIGITAL MEDIA STRATEGY ADVERTISING
My objectives Get you to rethink the value and process of marketing and how you look at the measurement of marketing inputs . Consider getting into the habit of measurement .
Persuade you …that marketers are not guesstimators and fluke artists
TO AGREE ON ROI , WE MUST FIRST AGREE ON HOW MARKETING WORKS .
HOW DOES MARKETING CONVERT TO A SALE?
MARKETING IS ABOUT IDENTIFYING NEEDS AND SERVING THOSE NEEDS AT A PROFIT
NEEDS FUNCTIONAL EMOTIONAL
RANK AND IDENTIFY MOST IMPORTANT DRIVERS IN A CATEGORY OR CONSUMER GROUP
QUANTIFY EACH OPPORTUNITY IN CONSUMPTION OR PURCHASE VOLUME/BUSINESS OPPORTUNITY PER BUSINESS /CONSUMPTION DRIVER.
Execute VS each variable –Example
Marketing Mix Modelling
What is MMM X Based on historical data , companies are able to establish how each of the important variables affect business growth . These models measure combinations of these variables and can attribute sales to how these variables work together.
VARIABLES AND CO RELATION
Return on objectives What is the cost vs benefits attributed towards achieving an objective. Sampling Awareness Trial
ROMI This measure attempts to quantify the amount of additional revenue attributable to marketing efforts . Incremental revenues attributable to marketing in Tshs * Contribution margin % - Marketing cost . If you spend 100,000 and gain 500,000 in additional sales and you make an average of 60% margin then your ROMI is 60% x 500,000 = 300,000
Media ROI Establish your market Establish how many of them you can reach on media without being wasteful. Track message delivery . Track ROI.
Barriers to measurement Attitude of the business to negative information. Cost of objective measures . Structural issues within the business –Data collection not a defined area of work for any department . Management culture of the business
Who is responsible for marketing measurement processes within your business ? US Association of National Advertisers Poll
US companies Key issues Lack of alignment between marketing and finance on ROI Lack of alignment of ROI goals with company goals and strategies. Over half have no written ROI goals .
Getting started Attitude – Test and learn Start with realistic and available information . Encourage admission of errors and encourage non repeat . Scale and add on new measures.
Online Media planning Setting up your campaign objectives? Like all campaigns, those that use online need to be clear and tangible. (SMART) A SIMPLE awareness objective could read – To raise awareness of our product – We aim to reach 100,000 of our target audience with a message introducing our new product in the first 2 weeks after launch
The decision Funnel
ROMI on Ads on a Baby and Mother`s Fair 2009Media director –Frank Maina
Digital media spans categories and types Online Mobile Digital Outdoor
Tools to measure digital media ROI are more immediate and diverse The technology platforms have measurement in built . Ease of data interpretation Accountability
Case study A moms event in Kenya
2010 Objectives Grow awareness for the 2010 fair in Nairobi Optimise communication across all media at least cost Leverage on PR services to communicate credibility and connect with moms. Provide mothers with a reason to attend the fair by providing them with useful information Seed the campaign to facilitate word of mouth communication in the target group.
Media SummaryPost buy –All women 24-34 Nairobi TV:- Reach 85% AVF 3.1 Coverage 442,850 Print:- Reach 17% AVF 1 Coverage 88’570 Radio:- Reach 8% AVF 1.5 Coverage 41,680 Online:- Impressions 8,849,023 Clicks 10,912 Click through Ratio 0.123 Street Banners (Traffic Counts not available) Jogoo Road Gigiri Nyayo Consolata shrines Ngong RD Uchumi hyper
Lower savings as compared to last year because of exclusion of Radio and minimal print deployment.. TV offered lower discounts
Banner click through was optimised so as to remain within budget limits
Media schedule compliance was at 95% with KTN rescheduling spots that were missed to later date with acceptable ratings. PR enhanced the schedule through News items and print coverage that boosted the ratings of the media Schedule by approximately 30% of core target
N=2129 respondents Aprox 5% of the Questionnaires were repeated and therefore counted only once
Despite addition 3 spots on TV we have only 1% increase in awareness through TV Increase in online performance is as a result of face book content updates, newsletter broadcasts. Increase in people (WOM)may also include the viral nature of news letter references, face book articles forwards. Loss of awareness through Roadside Banners with increased sites may be due to clutter at banner areas
Spend budget proportions Online still remains the best return on investment at a conversion to budget ratio of 1.3 ie 16% budget investment giving 12% return. Print effectiveness was greatly aided by prvs cost People, TV and online yields 75% awareness on media People increased by 7% from last year by virtue of News letter, and facebook sharing of among facebookers Online grew by 4% as a result of enhanced banner rotation to address demographics and psychographic. TV remained largely the same at 1% growth despite additional spot adverts
0.116 0.160 0.099 0.151 0.109 0.121 0.083
There were approximately 10 complaints out of 571 newsletter opened. Aprox 40% of newsletters opened, were opened twice. Showing that the content was engaging. 19% of the news letters opened supplied extra info through links that were clicked on 39% of the news letters that were forwarded, between recipients were opened
learning's TV:- Additional 3 spots yielded 1% increase in awareness in comparison to last year’s schedule. Therefore need to maintain tight ROI on spot buying. PR:- Pr yielded coverage equivalent to 30% of exposure on TV radio and Print at competitive rates (not Solus), and may be an avenue to explore in raising the profile of the fair. ROAD BANNERS:- Despite three extra sites, banner awareness fell by 2% from last year, indicating that traffic may be substantially lower towards the mid of the month rather than the end of the month. Time may be saved buy separating printing works from banner hosting solution providers, when dealing with small providers. Online:- Online contribution to awareness improved by 4%( with improved our face book page likes, 300%) because of relevant useful content updates, longer online advertising, and newsletter broadcasts.