Measuring advertising effectiveness is a hot button on the radar for most marketers in key client verticals. If you are a consumer package goods or retail, you know there is a tremendous amount of scrutiny on your marketing budgets. Also, part of that scrutiny is being asked to prove ROI from marketing efforts. So, what does that really mean?
A marketing campaign’s ROI is more of a snapshot then anything else. It’s an individual’s campaign tactic and means to measuring what is the return on investment with that campaign. For example, if a client is running an online display advertising program, very often they are going to spend a certain amount of money for a number of impressions over a specified period of time. The goal is to be able to measure what the sales lift was and if they got those from media impressions.
Once it’s determined that sales lift was derived entirely from that media campaign, it can be replicated across a variety of different campaigns. This KPI will help provide justification for investing in that particular channel.
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