How do you measure the effectiveness of your marketing campaigns?
Have you ever felt that the data of some marketing channels exists in a “vacuum” – meaning that it is difficult to detect their actual impact?
Channels such as connected TV, satellite radio, digital advertising, email and social networks have made analyzing marketing campaigns a complex field for marketers.
But you can find valuable insights for your strategies – if you know where to look.
Fortunately, you will discover exactly where this hidden data lies, now.
On September 28th, I moderated a webinar by Shaubhik Ray, Senior Director of Digital Analytics at iQuanti.
Ray explained how you can improve your ability to predict the success of your marketing programs.
Here is a summary of the webinar.
To access the entire presentation, Complete the application.
The what, why and how of marketing effectiveness
Marketing effectiveness goes hand in hand with efficiency. If your marketing performance is effective, the cost of acquiring or executing a campaign is more efficient.
The primary goal of all marketers is to understand the actual return on their investment in different channels.
It is important to measure marketing effectiveness because you want to improve:
- Marketing performance.
- Marketing budget.
- Business performance.
However, this is not always easy to track due to both external and internal factors.
Measurement techniques that must be used to measure success
First, create a KPI framework to define your company’s KPIs.
Then, design a solution to accurately capture your company’s KPIs.
Next, standardize your channel dataset.
Finally, develop a structured approach to identify marketing KPIs that need to be collected to measure business success.
Once you understand the different metrics you’re capturing, focus on standardizing how you capture that data.
These methods can include:
- Campaign tagging framework.
- Campaign naming conventions.
- Roll out a campaign tracker.
Advanced techniques for measuring effectiveness
You can measure the effectiveness of your marketing campaign by tracking:
- cause effect.
- Marketing mix modeling.
Digital attribution is the science of assigning credit to each marketing touchpoint in the customer journey based on the impact of that touchpoint on the final conversion decision.
The approaches include rule-based and algorithm-based attribution.
Incremental: Proof of cause and effect
Marketing augmentation is the raising or increase of a desired business outcome (eg, awareness, web visits, conversions, revenue) resulting from a marketing intervention.
You can handle this at the user level or the geographic level.
Marketing mix modeling
Marketing mix modeling (MMM) is a statistical technique used to identify and measure the relationship between a pre-determined KPI such as sales and the factors that influence it.
This approach is privacy-friendly, inclusive, and flexible.
Marketing spending metrics
By analyzing the spending metrics you are tracking for a particular campaign, you can get a good understanding of how effective different campaigns are.
There are a lot of spending metrics, but the three cost metrics that help you understand how well each of your campaigns is performing are:
- Cost per acquisition (CPA).
- Incremental cost of acquisition (CPIA).
- Marginal Cost Per Acquisition (MCPA).
Now that you know the techniques and metrics, you can proceed to choosing.
How to choose the right measuring techniques
Consider the following factors when selecting appropriate measurement techniques:
- Data availability
- Is the data basis in place?
- Historical data availability and data breakdown.
- Availability of resources
- What is the current technology stack for measurement?
- Access to skilled resources.
- use case
- The primary goal of the analysis.
- Industry and customer journeys (conversion path).
Knowing where to look allows you to find valuable insights for your strategies, gain clarity, and move in the right direction with your campaigns.
Measuring marketing effectiveness: What you need to know [Webinar]
Here is the presentation:
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