A common mistake of many marketers is to measure the success of their marketing campaigns one battle at a time. That is, many will focus on each ad and medium independently of one another, in order to measure the comparable strength of their campaigns. Thus, measuring TV, radio, online and print ads for their independent functionality can serve to under recognise the performance of an ad and limits the scope to improve and develop effectively.
A concept often missed by marketers and businesses is that adverts now frequently interact with each other to provide a combined effort and a strong force of ROI. For example, a TV ad can prompt an individual to Google search an item, which could then lead to a click through on a display ad. If this results in a sale there becomes a combined effort of adverts in that process.
This common mistake of measuring advertising touch points in isolation is known as ‘swim-lane measurement’– which can cause over or under attribution of advertising revenues. Swimming in lane will ignore the assisted effects of one advertising medium to another. Particularly, this error in measurement can underestimate the revenues attributable to social-media marketing and can place too much emphasis on PR and paid-search revenue.
Being mindful of not swimming in lane and seeking to look out to the open water is conducive in spreading your business-marketing budget efficiently. When examining the new product campaign of one business it was discovered that 85% of the marketing budget was spent on the TV campaign, whereas YouTube consumed just 6% of it. The latter was nearly twice as effective in initiating online searches that in turn lead to purchasing. In another twist to this tale, 4% of the total advertising budget in search ads generated 25% of the sales. With this analysis in mind companies can seek to reorganise and redistribute their ad campaigns across mediums and increase their revenues: all without spending a penny more.
Since digital marketing is now more popular than ever, this close monitoring of marketing down to literally every click has become very easy, and adjustments can be made quickly. Tracking consumer action online has demonstrated that a click on an ad banner can be linked to purchasing behaviour, thus social media advertising is a highly cost-effective exercise.
The new form of cross-medium advertising analytics is termed ‘Analytics 2.0’ (a development on 1.) which, in light of the big data we all produce now, provides insights into how marketing really affects our revenue. Three activities include: attribution (quantifying the varying effects of advertising touch points), optimisation (predictive analytics) and allocation (redistribution of resources across marketing activities in real-time). Precise and efficient management of marketing is the aim of this game.
Click to learn about the various mobile advertising analytics and tracking tools out there.
Picture credit to Harvard Business Review