43% of businesses find that proving the return-on-investment (ROI) of their marketing activities is one of their biggest challenges. I think this is both a worrying, but also a fascinating statistic.
The ROI of your marketing activities is all about understanding the effectiveness of your marketing efforts.
It’s about answering the question: is the effort and money I’m putting into marketing really paying off?
What makes ROI difficult to prove is that your marketing efforts are already difficult to measure. And because of that, we often end up measuring elements that are not that relevant at all. Let me give you an example.
A few years ago, there was an interesting article published in the Harvard Business Review about measuring marketing effectiveness.
The authors gave the example of a YouTube video they produced for a sports organization called DoSomething.org . The video featured some very well-known YouTube celebrities, who asked young people to donate their used sports equipment to youth in need.
The video gained 1,500,000 views. But was it successful? No.
When the data report came in, the authors found that only eight viewers had signed up to donate equipment, and zero actually donated. It became brutally evident that views do not equal success.
What’s fascinating about this example is that any business would be overcome with joy if a video they produced got 1.5 million views. But this same business would still go bankrupt if those views did not lead to sales.
The lesson here is that the start of measuring marketing effectiveness starts with using the right metrics; it starts with knowing what you want to achieve. Do you want more followers? More likes on social media? Do you want to generate leads? Or perhaps directly influence sales? Only if you know your goal, you can accurately measure against it.
Liked this article? Share it! Love this type of stuff? Subscribe below!
Discover the world's greatest advertising
Free weekly updates via email.
Thank you for subscribing!
Something went wrong.