ROI – RETURN OF INVESTMENT MEASUREMENT VS. MARKETERS INTUITION

Marcel Vašš, CEO, Etarget Budapest, 27.11.2012

HOW TO CALCULATE ROI? PROFIT / INVESTMENT = ROI %

profit gross margin or net profit - per sale - in 3 months - recommendation value coefficient

investment to traffic or to visibility (segmentate)

WHAT TO MEASURE? KEY FACTORS THAT INFLUANCE METHODOLOGY

Size of your business / ambitions Uniqueness of product Complexity of Purchasing process

1. LAST CLICK SALE AD SALE

Easy to measure Direct advertising cost vs. profit generated on sale •No brand ambition •No uniqueness •Easy to decide •Easy to buy

2. MULTI CHANNEL SALE AD+AD+AD+AD... SALE

Possible to measure funnel advertising cost vs. profit generated on sale •No brand ambition •No uniqueness •Longer decision process •Easy to buy

3. BRANDED SALE AD+AD+BRAND SALE

Hard to measure funnel advertising + brand awareness cost vs. profit generated on sale •Branded •High or low uniqueness •Shorter or longer decision process •Easy to buy

4. MULTI CHANNEL CUSTOMER TO SALE AD+AD+CONTENT CUSTOMER SALE

Hard to measure Investment vs. engagement vs. sale •Branded •High uniqueness •Longer decision process •Complex buying process

HOW TO MEASURE? BE AWARE OF ONLINE METRIC LIMITS

• technical limits of internet • people are deleting cookies • people are using more browsers witch mean more cookies • people are using more devices witch mean more cookies (work PC, home PC, mobile, tablet)

TIPS FOR MEASUREMENT METRICS AND TOOL

MEASURING • last click analytics (GA, Etarget conversion) • multi channel clicks analytics (GA, coremetrics, omniture,webtrends) • retargeting analytics (GA, Etarget conversion) • post click engagement (Clicktale, CrazyEgg) • post ad view analytics (Coremetris, omniture)

TIPS FOR MEASUREMENT METRICS AND TOOL

TESTING • regional tests (or other targeting) • coupon tests, call tests (internal metrics) • brand value analytics (branded vs. non branded store) • on store effect of online campaign (Facebook inspiration with loyalty cards)

a) think about goals and ambitions b) find key influencers and their power to your success • right time on right place navigation • knowledge • brand Awareness c) define right metrics d) measure Total ROI is sum of partial ROIs. Lets combine it smart!

THANK YOU!

QUESTIONS?

marcel.vass@etarget.eu