Friday, December 16, 2011

ROI Tools and Metrics for Digital Media

The latest data sited by IAB in Oct 2011, only Internet Advertising Revenues shoot up to 7.9 Billion $ in 2011.
Since the advent of social media in the marketing , marketers are in quandary to justify the impact of this marketing phenomenon using advertising metrics.New ROI calculators for social media are created as fast as social media sites and are rejected at the same rate. Most of these ROI calculators become unworkable under real conditions.ROI has given different terms in digital media from Return on Influence to Return on Engagement

Quoting David Alston in Marketing Profs,‘ The discussion of ROI has focused mostly on the search for the Holy Grail of a metric, but adapting traditional metrics to fi t social media would be akin to sticking a square peg in a round hole. ’

Social Media on the consumer behavior has been able to drawn following statistics:-

1. 70 per cent of consumers have visited social media sites to get information;
2. 49 per cent of these consumers made a purchase decision based on the information they found through social media sites;
3. 60 per cent of people in the study said they are likely to use social media sites to pass along information to other online;
4. 45 per cent of people who searched for information via social media sites engaged in word of mouth compared to 36 per cent who found information on a company or news site.

With the growing influence of digital media, the measures to measure ROI is getting skewed in their reliability
This is where the IAB’s ‘ Social Media Ad Metrics Definitions ’ have gone some
way to filling the gap. They provide a clear framework by which advertisers can gauge ad effectiveness across three main social media: social media sites, blogs and widgets /social media applications. The document divides social media into three distinct categories and defines the metrics specific
to each type: social media sites;blogs; widgets and social media applications

‘ Evaluating the most important measurement terms will help marketers, agencies and publishers quantify the value added by consumers as they distribute the content throughout their personal networks, one of the
defining characteristics of the platform ’

What this means in effect is that the IAB has clearly defined each platform, and then provided metrics by which the effectiveness of each might be measured when planning a campaign. In other words,
how to judge where to place your ad in order to obtain the best ROI. The metrics include the following:

1. Social media sites : Unique Visitors, Cost per unique visitor, Page views, Visits, Return Visits, Interaction rate, Time spent, Video installs, Relevant actions taken.

2. Blogs : Conversation size (number of sites, links and reach of a conversation whose content includes conversation phrases relevant to the client), Site relevance (Conversation density, Author credibility,
Content freshness and relevance).

3. Widgets and Social Media Applications : Installs (number of applications), Active
Users, Audience Profile, Unique User Reach, Growth, Influence, Installs (number installed per user).

But for any business drafting a marketing plan on digital platform should clear out what is its objective of plan. You can measure the traffic, audience, source, no. of visits, conversation and no. of installs and downloads but the question is that is this sufficient?

Draft your objective - Sales, Entry into Market, Opinions, Customer Feedback or Awareness and Decide your metrics accordingly.

Social Media may be a way to create easy brand experience for the customers, which in turn is a way to customer engagement and customer loyalty.Its about the experience you are creating that can reach or match the passion of your customer.

Recent ranking of Social brands on Yomega, a social media agency.

Dear All,

An interesting presentation on Flagship Television Models for year 2012

Please check it out!!!