Tag Archives: marketing roi

Challenge #1: Proving the ROI of social media

As marketers, we’re under constant pressure to prove that our tactics are working. In order to show that what we’re doing is effective, we need numbers – cold, hard, measurable numbers to back up a high return on investment.

Unfortunately, when it comes to social media, finding those measurable numbers can be  quite challenging.

Marketers cited the “inability to measure ROI” as one of the largest barriers to adopting social media tactics by their company, according to MarketingSherpa research.

“This barrier is more of a perception than a reality because social media often requires qualitative measurement rather than the quantitative metrics that online marketers have become accustomed to,” say the Sherpas.

In order to measure ROI, you need two numbers: an investment cost and income returned. The easier you can find these two factors, the easier it is to measure your tactic and show that what you’re doing is working (or not).

MarketingSherpa’s most recent Chart of the Week reveals the social media tactics marketers find to be the most accurately measurable.

Proving the ROI of social media

Proving the ROI of social media

The top three most measurable tactics include advertising on blogs or social networks, online news release distribution and user reviews or ratings.

Instead of throwing out the bottom tactics – forums or discussion groups, blogging on a company blog, creating profiles on social networks – the Sherpas suggest factoring in more qualitative values into your perceived ROI.

“Those who don’t include qualitative factors in the planning of their social media programs may find themselves employing much less effective tactics, simply for the sake of perceived measurability, resulting in a loss of confidence in performance.”

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They’re talking about you, like it or not

I ran across some great advice today at the B2B Marketing Blog that needed to be passed along. In today’s post, Brian Courtney delivers some wise words:

“People will be talking about your brand with or without you. You may as well take part in the conversation.”

And he warns that there’s a new type of ROI out there – the Risk Of Ignoring.

Even if you thing you’re doing it wrong, just being a part of social media is the right way to go.

Read the full B2B Marketing Blog post.

How to save on PPC and get the best ROI

As we said in yesterday’s post, this year marketers will be moving dollars into more reliable ROI generators, including pay-per-click (PPC) search ads. Because of it’s precise targeting and easy measurement, paid search provides a great return for many businesses.

Whether you’re dealing with a $20 or $20K daily PPC budget, you want to know you’re saving money wherever you can. Especially if your PPC budget has been scaled back in 2009, it’s more important than ever to get the most bang for your buck.

Peter Prestipino, Editor-In-Chief of Website Magazine, recently wrote an article featured at Blog Mango explaining how to make saving money on PPC a priority in 2009. Here are a few of Peter’s tips:

Assess your “broad match” campaigns. By default, Adwords campaigns are set as “broad match” campaigns. Peter’s example: “If WebsiteMagazine.com were to bid on the on the keyword “Website Magazine” on a broad match level, we’d receive a lot of unrelated traffic from queries related to “magazines” – which is not what we want. So if you have done the required keyword research and are confident with the effectiveness of a few keywords, use the “Phrase” or “Exact Match” instead of Broad Match.”

Take another look at negative keywords. “Negative keywords enable advertisers to ensure that they do not, under any circumstances, appear under certain keyword or key phrase combinations.” When used correctly, you can filter out keywords for which you don’t want your ads shown. For more information, go to Adwords Keyword Tool, enter a keyword and choose “Negative” in the drop down menu under “Match Type.” It will show you a slew of negative keywords that may fit your primary keyword.

Restructure your campaign to improve conversions. Peter explains that the most efficient PPC campaigns follow a similar process: “group similar keywords together in individual ad groups, develop sets of ads for those individual groups and point those keyword focused ad groups (and often times on a keyword level) to designated landing pages.” Restructuring your campaign this way will improve your click-through rate and improve conversions.

Schedule your ads. Control the days and times your AdWords campaigns appear by using Ad Scheduling. If you’re running a campaign on a certain day of the week, you can use Ad Scheduling to only show ads on that particular day. You can even schedule ads to run during a certain time of the day where you receive the most business. With a little trial and error, it could improve your conversion rates.

Read the full article at Blog Mango.

Any other advice out there on how to save money on PPC? We’d love to hear it!

Marketers share plans for marketing in a recession

MarketingSherpa, in collaboration with ad:tech, recently released the results of another year-end survey of more than 1,200 marketers. Their research provides an inside look at which tactics have the best ROI and how marketers are adjusting their plans this year for marketing in a recession.

The following chart illustrates which marketing tactics were put to work the most, were given the biggest budgets and provided the best ROI.

Best ROI marketing tactics

Best ROI marketing tactics

The ‘x’ axis marks the percentage of marketers that describe each tactic as a “great” return on investment. The ‘y’ axis shows which marketing tactics were implemented the most. The size of the bubble illustrates the relative budget compared to other tactics.

According to the findings:

  • Paid search is a clear front-runner in both budget and ROI with about 50% of respondents saying it had a great return.
  • More than 40% of marketers said that email marketing to their house lists had great ROI.
  • More than 70% of marketers use display ads, such as banners and buttons, but less than 15% said they generate good ROI.

The gurus at MarketingSherpa are predicting that as the economy gets tighter more marketers may move dollars into more reliable ROI generators this year. Topping the list of reliable ROI efforts are pay-per-click (PPC) search ads, emails to house lists and search engine optimization.