Transcript NEW YORK MARCH 30

Proving Advertising ROI
September 24, 2010 1:45-3:15
How do you Quantify a Kiss?
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Source: MPA Handbook, 2010
Source: MPA Handbook, 2010
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Source: MPA Handbook, 2010
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Source: MPA Handbook, 2010
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Source: MPA Handbook, 2010
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Source: MPA Handbook, 2010
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Source: MPA Handbook, 2010
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Source: MPA Handbook, 2010
Definition of ROI
Return generated by each dollar invested
Incremental sales volume generated by a media investment
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The ROI Sales Teeter-Totter
Analytic vs. Impressionistic
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ROI: Client Perspective
Will my ad
pay off?
Client’s definition of ROI
ROI vs. “Accountability” and/or
“quantifiable results”
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ROI: Your Perspective
How do we
convince the
client that we
can deliver?
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Advertising ROI Checklist
•What “proof” does the advertiser need to make the
buy?
•What criteria will they use to determine success?
•Can you deliver based on that criteria?
•If not, can you negotiate the criteria?
•Set reasonable goals
•Don’t promise what you can’t deliver
•Review campaign success
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Media Audits
Integrated Brand Reach Audit
SM
Magazine
Website
Social Media
Brand
Wireless
E-newsletter
RSS
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Events
Gross individuals for each channel
Unique individuals
Average channels per individual
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Matrix of channels
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Website traffic
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Recency of involvement
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Or put it this way…
• “Proof”: Beyond a reasonable doubt
• “Proof”: Preponderance of evidence
• The “burden of proof” is on you!
• Goal: To use evidence to build your case
so that your client can use their judgment
to easily conclude that your media is an
excellent marketing investment
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Measuring ROI
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Increased brand awareness
Customer value
Dollar & unit sales
Engagement
Actions taken
Leads
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Number
Cost per lead
Cost conversion to sale
Shift in market share
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Digital Advertising ROI
• Number of unique
visitors site/page
• Clicks to website
• Quality of leads
• New readers
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Number delivered
Open rate
Bounces- hard/soft
Opt in/double opt in
Unsubscribe /retentions
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A Competitive CPM
What’s the
real cost?
•CPM– lowest common denominator
•Effective CPM- target for this advertiser
•Best readers: demographic, buying power
•Exclusive readers
•Behavioral targeting
•No waste
•Larger reach
•Vertical vs. horizontal targeting
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CPM Vs. CPH
VS.
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How does your Market Measure Yield
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Hotels-- occupancy rates
Airlines--seats filled/ revenue per seat
Aerospace--cargo load
Agriculture: yield per acre
Micro-technology--yield per microchip
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It’s About Mindshare
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It’s not who you know
It’s about who knows you
It’s about what they think of you
Branding Studies
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Not Merely A Sale –
But A Customer
First sale
$____________
Additional sales
$____________
Renewal/repeat sales
$____________
Referral sales
$____________
Total value of a new customer $____________
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ROI Math
• Investment
$400,000 $500,000 $600,00
• Gross margin 548,000
675,000 798,000
• Return
148,000
175,000 198,000
• Net ROI
37%
35%
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Measuring Buyer Action
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Purchase product or service
Recommend product or purchase
Gather more information
Visit advertiser’s website
Purchase consideration
Visit brick and mortar store/venue
Save ad for future reference
Social media, word of mouth
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Social Media ROI
• Best practices online media (e.g. paid
search, SEO, online advertising)
• Transactions and ROI
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Inquires: Clicks, visits, page views, phone calls
Actions: Valuable brand interactions
Conversions: Data capture, lead capture, sales
ROI: Cost per click, cost per lead, revenue
Source: www. clickz.com, may 25, 2010
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Social Media Stats
• Connections: Friends, fans, likes,
subscribers, followers, application installs
• Engagement: Likes, comments, sharing,
re-tweets, interaction
• Views: Video plays, SlideShare plays,
social site page views
• Traction: Engagement rates, re-tweet
rates
Source: Clickz
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Buzz and Sentiment
Chatter: Levels of Twitter tweets, blog
posts, forum posts and comments
Reach: Influence and reach of the people
and bloggers posting the chatter
Sentiment: Positive and negative ratings of
the chatter being posted
Context: subject matter, specific themes of
the chatter and comments
Source: Clickz
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Social Media Actions Taken
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Contests/sweeps entries
Coupons downloaded/redeemed
Games played
Videos viewed
Uploads (e.g. images, videos)
Poll votes
Messages sent (e.g. bulletins, updates,
emails, alerts)
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Social Media Actions Taken
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Invites sent
Newsfeed items posted
Comments posted
Friends reached
Topic/forums created
Number of group members or fans
Reposts (“shares”)
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Consider the Negative ROI
Lost sales
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Helen Berman
Helen Berman is a publishing consultant specializing in print, Internet and
exhibition sales training and management-development programs.
Founded in 1984, the Helen Berman Corporation has trained thousands of
salespeople with customized in-house workshops and regional seminars.
Helen is a frequent speaker at many publishing conferences, including,
FOLIO, Magazine Publishers of America, and American Business Media.
Helen is the author of the two-volume book Ad Sales: Winning Secrets of
the Magazine Pros, available in hardback and as e-books. Helen is also a
regular contributor of articles and columns on publishing, selling techniques
and management to FOLIO Magazine and to EXPO Magazine.
The Helen Berman Corporation
15332 Antioch #164
Pacific Palisades, CA 90272
Phone: 310-230-3899
www.helenberman.com
e-mail: [email protected]
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Proving Advertising ROI
September 24, 2010 1:45-3:15