Return on investment (ROI) is an important part of digital marketing (and really, almost every part of marketing)—it tells you whether you’re getting your money’s worth from your marketing campaigns. And if you’re not, it’s critical to get to the bottom of it and understand why so you can learn how to improve your campaigns. But first, you need to understand how you can effectively measure the ROI of digital advertising.
The most instinctive way to measure digital advertising ROI is to track metrics that tie directly to revenue and profit (think conversions, opportunities, etc.). While it sounds great on paper, in the real world, this oversimplified view can paint an inaccurate picture of your ROI, especially if your product is sold at a low price per unit. Big picture measurement often factors in soft metrics—things like brand impressions, impressions, website visitors, and downloads—which help tell a more complete story.
Here’s how to measure ROI using soft metrics for three popular digital advertisements—mobile video ads, native advertising, and programmatic advertising:
1. Mobile Video Ads
Mobile video advertising can be more Belgium Phone Number effective than regular web video advertising or even television advertising. This is because mobile is a much more intimate medium—it’s less of a shared experience and has fewer distractions.
Measuring the ROI of Mobile Video Advertising
When evaluating the success of your mobile video advertising, take these metrics into account:
- Brand awareness: Measure brand awareness by looking at your direct traffic numbers (hits that come from viewers typing the URL directly into their search bar), the number of people who searched for your video by its name or hashtag, the number of clicks that came from referrals, and the number of social media shares and mentions. You can also find current search data on your brand name by using a tool like Google Trends.
- Purchase influence: Did your ad lead to an increase in sales? This ensures people actually have access to your ads.
- Mindshare: While you have no way of measuring how often people discuss your brand with friends over coffee, you can get a good idea how often people are talking about it by looking at the comments and shares on your mobile videos. A successful mobile video ad will have both.