It is a known fact that advertising is a very successful form of marketing. It involves investing a lot of time or money, and sometimes both to achieve the goals you set for your company. However, many of us make the error of assuming that if our ads get thousands of views or shares on the social media, then these huge numbers will also translate to a high return on investment (ROI). You could spend Rs.1 lac on advertising for your product, but it is very unlikely that Facebook advertising alone is going to win all your money back.
Jason Amunwa, Director of Products at Filament, states:
"Vanity metrics do nothing for your actual website objectives, but make your marketing efforts look good. This is problematic because oftentimes they siphon effort and focus away from the things that could really move the needle for you. Engagement metrics tell you what content is truly performing for you, what's just "meh", and what's ripe for enrichment and optimization; in short, engagement metrics tell you where the real opportunities are for growth."
The bottom line is, all your marketing efforts are only going to be effective if they are boosting your revenues. If they aren’t, you know there’s a problem.
In this blog, we look at 3 effective techniques that you can use to ensure your marketing channels are showing concrete results from your marketing spend.
Technique 1: RCQ (Reach, Cost, Quality) Assessments
This high-level framework works best to gauge the impact of your advertising channels. RCQ involves assigning a score for every channel (both offline and digital) in your marketing mix using qualitative knowledge and available data. These assessments let you estimate the benefits of all the advertising channels, both planned and used.
- Reach: how many consumers would be able to view the ads through an advertising medium
- Cost: the cost of each touch on every advertising medium
- Quality: targeted engagement with the audience
Brian Massey, a Conversion Scientist at Conversion Sciences, suggests that we “stop thinking of analytics as a discipline of data scientists,” instead we can make good decisions from unexpected sources.
Technique 2: Multi-touch Attribution (MTA)
Did you know MTA channels are used by 38% of B2C companies and 56% of B2B companies? MTA tools help you analyse the pattern and number of contacts your consumers make through digital channels before they decide whether to abandon or go ahead with a purchase. They help you gain a deep understanding of the consumer’s journey and identify the channels that have the biggest impact on conversion rates compared to last-click or first-click attribution.
However, there are some disadvantages to using these MTA tools. Firstly, they need large volumes of accessible data to create insights and only work for digital channels. Secondly, there are many privacy and identity concerns that have cropped up in the past for several consumers.
Technique 3: Marketing Mix Modelling (MMM)
MMM creates a holistic view of marketing’s impact on revenues by leveraging historical data on the marketing channel mix and techniques. According to a survey by Gartner, 65% of B2B brands and 71% of B2C companies use MMM to evaluate their multichannel marketing programs. Users have two options – either to take the services of an MMM service provider or invest in an MMM software. Both ways they can use it for historic analysis and use it to estimate how future tactics can lead to growth in the revenue stream. MMM works best for a complex marketing mix as it requires intensive data resources.
If you are looking for conversion optimization and high yield investments, you need to focus on how you create and implement your business strategy. At the same time, assess how your business can improve its income flows from marketing analytics using the three different approaches we discussed above.
Get in touch with illuminz if you want help in evaluating the impact of your marketing investments and require a strong business strategy that meets the goals of your brand. Our team of professionals are ready to push the limits to not just meet but exceed your expectations.
We look forward to discussing your business ideas with you. Let’s talk!