Proving Advertising ROISeptember 24, 2010 1:45-3:15

How do you Quantify a Kiss?

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Source: MPA Handbook, 2010

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Source: MPA Handbook, 2010

- 14 -- 14 -Source: MPA Handbook, 2010

- 15 -- 15 -Source: MPA Handbook, 2010

- 16 -- 16 -Source: MPA Handbook, 2010

- 17 -- 17 -Source: MPA Handbook, 2010

- 18 -- 18 -Source: MPA Handbook, 2010

Source: MPA Handbook, 2010

Definition of ROI

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Return generated by each dollar invested

Incremental sales volume generated by a media investment

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The ROI Sales Teeter-TotterThe ROI Sales Teeter-Totter

Analytic vs. ImpressionisticAnalytic vs. Impressionistic

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ROI: Client PerspectiveROI: Client PerspectiveWill my ad

pay off?Will my ad

pay off?$1,000

Client’s definition of ROI

ROI vs. “Accountability” and/or “quantifiable results”

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ROI: Your PerspectiveROI: Your Perspective

How do we convince the client that we can deliver?

How do we convince the client that we can deliver?

Advertising ROI Checklist

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•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

Media Audits

Integrated Brand ReachSM Audit

Social Media

Wireless

RSS Events

E-newsletter

Website

Magazine

Brand

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Gross individuals for each channel

Unique individualsAverage 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…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 ROIMeasuring ROI

• Increased brand awareness• Customer value• Dollar & unit sales• Engagement• Actions taken• Leads

– Number– Cost per lead– Cost conversion to sale– Shift in market share

Digital Advertising ROI

• Number of unique visitors site/page

• Clicks to website• Quality of leads• New readers

• Number delivered

• Open rate

• Bounces- hard/soft

• Opt in/double opt in

• Unsubscribe /retentions

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A Competitive CPM A Competitive CPM

What’s the

real cost?

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. CPHCPM Vs. CPH

VS.VS.

How does your Market Measure Yield

• 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

It’s not who you knowIt’s about who knows youIt’s about what they think of you

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Branding StudiesBranding Studies

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Not Merely A Sale – Not Merely A Sale – But A CustomerBut A Customer

First sale $____________

Additional sales $____________

Renewal/repeat sales $____________

Referral sales $____________

Total value of a new customerTotal value of a new customer $____________ $____________

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% 33%

- 40 -- 40 -Source; Marketing ROI, James D. Lenskold,

Measuring Buyer Action

• 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– 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

4242Source: www. clickz.com, may 25, 2010

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

4343Source: Clickz

Buzz and SentimentChatter: 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

4444Source: Clickz

Social Media Actions Taken

• 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

• 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 ROIConsider the Negative ROI

Lost sales

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Helen BermanHelen 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.

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 Corporation15332 Antioch #164

Pacific Palisades, CA 90272

Phone: 310-230-3899www.helenberman.com

e-mail: hberman@helenberman.com

Proving Advertising ROISeptember 24, 2010 1:45-3:15