Friday, 13 August 2010

It's all about s-t-r-a-t-e-g-y!

A friend posted this on Facebook the other day...

http://whatthefuckismysocialmediastrategy.com

If you click on the page title it will automatically generate a new strategy for you.

It's brilliant. ;)

Tuesday, 3 August 2010

Social Media Testing :: Calling a Spade a Spade

Firstly, let me say this...I love Social Media. It's my favourite Online Marketing Channel. The potential of Social Media marketing is enormous. I think we can all agree on this, right?

But what's wrong with saying: "I cannot provide a robust ROMI model for Social Media"? Let's call a spade a spade. Social Media at this moment in time is a big test which we all think could work extremely well if done properly. Whatever "properly" means. ;)

If you lay out on a table what Social Media is, the pros and cons, its reach potential, case studies, the costs involved against other marketing channels and so on...no normal rational person could ever say that Social Media marketing provides 0% ROMI.

So let's find a middle ground on this issue.

Social Media is a new channel with unique brand/customer interactions that can be tested and measured - if done properly. As we cannot provide a robust ROMI model, part of Social Media marketing involves testing with one of the benefits being that we obtain Customer Insight. So why not state that part of the Social Media budget is R&D, Market Research or just plain old testing?

Here's a good post about testing to boost marketing performance, enjoy.

Using Testing to Boost the Performance of Multichannel Marketing
http://blog.widemile.com/tag/return-on-marketing-investment/

Monday, 2 August 2010

Measuring ROMI in Outdoor Advertising

Well first things first. Here's some good news, OOH Advertising revenues are increasing...


Just thought I'd share that with you.

I feel I'm walking into a mine field talking about OOH Advertising. I think the main reason is that I don't believe outdoor advertising works as a single channel strategy. By that I mean, outdoor advertising relies on other channels to be highly effective or, it forms part of an integrated marketing strategy. I know I know, I'm stating the obvious. But hear me out. I haven't finished yet. ;)

Take a car manufacturer. You could "assume" that billboards within a specific geographical region and the sales of cars in that same region could be linked in order to calculate the ROMI. But at the end of the day, you are still going to have to ask the customer whether they came into the dealership because of the billboards they saw. How does that work with a mobile phone? How do you link phone sales to the outdoor advertising budget without asking the customer which campaign/channel made them look into purchasing that mobile phone in the first place? And how do we measure OOH Advertising effectiveness?

The problem that I see is as follows...get ready for the jargon...

The effectiveness of advertising is traditionally measured in terms of cost per thousand (CPM). Let's ignore Online for now. Anyway, this is computed by dividing cost of advertising with the Audience measure. But for OOH Advertising, Audience is measured using a dynamic method in order to make it comparable to traditional TV advertising. This is generally called Opportunity to See (OTS), which is based on three qualifying characteristics – Presence, Notice, and Dwell Time. But this is mostly best estimates so calculating ROMI is tough at best.

In order to improve the market viability of OOH Advertising, a system is required for also improving the method of measuring Audience metrics and, ultimately, its effectiveness. I'll talk about the different systems in another blog post.

I just think asking the customer the question about what triggered their purchasing enquiry is crucial in order to calculate the ROMI for OOH Advertising. Well, that and asking your advertising partner where your ad is going to be displayed.

Saturday, 31 July 2010

WEBlogosphere News - July 2010

Looks like the crisis is almost over according to this...

Publicis posts 28% profit jump and Levy calls 'end of economic crisis':
http://www.brandrepublic.com/news/1019285/Publicis-posts-28-profit-jump-Levy-calls-end-economic-crisis

Maurice Levy: chairman and chief executive of Publicis Groupe


Interpublic records 9.7% revenue boost in Q2:
http://www.mediaweek.co.uk/news/1019440/

Michael Roth: chief executive of Interpublic Group

Advertising uplift helps BSkyB's profit rise 10%:
http://www.mediaweek.co.uk/news/1019289/



Why do I get the feeling that the ROMI fanatics and their finance departments will soon go into hibernation?

Friday, 30 July 2010

ROMI-lus and ROI-mus

I've taken up a new hobby. Finding posts criticising ROMI. Do you know how many there are? Plenty.

We've heard the myth. Romulus wants to build a new city in one place and Remus in another. In the end, Romulus kills Remus. God (pick whichever one you like best) forbid if a marketing department ran a company and had an "open budget". A company's ROI would be dead in minutes! :)

Ok, I'm exagerating of course. I think. But I saw this post today...

Is your business still hung-up on Social Media ROI?
http://www.wallblog.co.uk/2010/07/19/is-your-business-still-hung-up-on-social-media-roi/

...then I saw this one...it fooled me! lol! This is a great post looking at ROMI in a more pragmatic way...

Social media monitoring: absolutely pointless
http://www.wallblog.co.uk/2010/07/27/social-media-monitoring-absolutely-pointless/

The Key Takeaway from Jed Hallam which I totally subscribe to is this: "always look at the macro, not the micro".

Wednesday, 28 July 2010

ROMI Measurement :: Ring-fence that budget!

Hi, I almost forgot I had a Blog! Ok, so. Back to work!

I was mulling over one of the main problems that I've noticed in most marketing departments. The lack of ROMI measurement.

It was interesting to read this article from PR Week:

Comms Directors Survey: We've turned the corner
http://www.prweek.com/uk/news/1016107/Comms-Directors-Survey-Weve-turned-corner

The line that caught my eye was "the recession has prompted more efficient, effective campaigns". It got me thinking, shouldn't we be trying to be more efficient and effective regardless of whether there is a recession or not?

But wait! I'm not trying to suggest that we base all marketing on what is more efficient and effective. We don't always know whether a campaign is going to be more or less efficient or effective than another. I love Creatives, believe me! ;)

I just found it interesting that due to the financial crisis we are suddenly "in an era of eagle eyes poring over every piece of expenditure" and that "measurement techniques have become comms directors' new obsession".

I guess when times are good, the eagles hibernate.

Sunday, 18 July 2010

In The Lab :: Calculating ROMI

Ok so, first things first. Let's get the not-so-clever math out the way and refresh our memories on the ROMI formula.

ROMI = Total Revenue Attributed to Marketing divided by Marketing Spend

Now the ideal set-up would be to calculate ROMI for each and every campaign, channel or marketing activity. But that's not only an extremely difficult thing to achieve (due to the R&D factor - see my previous post) but most businesses are not structured in a way that enables them to attribute every dollar or euro of revenue to a specific marketing budget.

Take for example a multi-channel campaign using TV, Social Media, Google SEO, Online Advertising and OOH Advertising. Unless you 'ask' the customer what triggered their purchasing decision, it's impossible to assign the generated revenue to a specific campaign or marketing channel. With 100% certaintiy that is. Sure, you can 'guesstimate' based on an uplift in sales (for example) but that lack of accountability doesn't sit well with me.

But maybe that's because I have a need to make sense and explain what I do. Sure, we all let our unknowledgeable butt do the talking on occasion but let's not make that the norm when it comes to ROMI. Having said that, I actually thought England could win the World Cup. OK but difference is, I'm not ashamed to admit it. Well...maybe just a little.  ;-)

Anyway, I was overjoyed when I saw this article on the NMA website the other day: IAB devises ways of benchmarking social media work. Establishing Objectives, Defining Metrics, Benchmarking and Creating Standards. Hello!

Nirvana. Smells Like Teen Spirit. Don't know why that came to mind.  ;-)