Today more than ever, advertisers need to ensure the merits of their communication campaigns. To do this, they must ensure that their advertising investments are effective and meet their objectives. The notion of return on investment (ROI) is absolutely essential to measure the profitability of investments. However, measuring these investments can be difficult, especially when implementing cross-media campaigns. This is why we want to decipher this subject and guide you in measuring ROI.
In this article we will only discuss paid media:
Calculating benefits: a major concern for businesses
With the growing importance of earned media (social networks, blogs, etc.) and the use of a media mix, it is increasingly difficult to measure the effectiveness of a cross-media campaign. Calculating the profitability of these media is essential for companies, because without this analysis, advertisers cannot favor the most profitable devices. Communication budgets are tight, and advertisers cannot invest in unprofitable media. It is therefore necessary to justify the level of investment and provide proof of results.
Difficulties in calculating ROI
Calculating the ROI of a cross-media campaign may seem simple at first glance. However, this analysis is much more complex than it seems. Indeed, it is necessary to centralize data from all the communication channels used. In addition to more traditional channels such as TV, radio, press and cinema, advertisers are now deploying their messages on digital communication channels with digital advertising, etc. Between these traditional and digital media, the KPIs analyzed are completely different. It is also difficult to link the efforts made on different media and the commercial benefits. The benefits are not necessarily immediate, because certain media, such as earned media, are long-term.
But rest assured, it is still possible to produce quality reports that meet the needs of your advertisers. We give you the keys below.
The methodology for calculating the ROI of your cross-media advertising campaign
Prerequisites
Before embarking on reporting your media plan, you must determine the financial and non-financial objectives that the campaign must meet. These objectives are often detailed in the advertiser's brief.
#1 Selection of performance indicators
Below is a list of indicators listed in tabular form:
#2 Definition of the organization and selection of tools
Once you have selected the indicators, you will need to distribute the tasks to your team. You will therefore try to know who takes care of which indicator and select the tools most suited to each indicator. For traditional media, you can use AdMonitor, which allows you to analyze the advertising investment of your advertisers. On the digital side, you can collect analytical information with tools like Google Analytics, etc. You will also need to define the tool used to centralize the information (dashboard tool like DigDash, or in Excel).
#3 Financial and non-financial outcome measures
For financial results, analyze the sales generated by the campaign. For non-financial results, measure audience, awareness, brand image and customer loyalty.
#4 The overall assessment
Finally, you are there! The final step has arrived: you will be able to take stock of your cross-media campaign. This will then involve defining the positive and negative points and drawing possible avenues for improvement for future campaigns.
If you would like to see a demo of our advertising investment analysis tool, AdMonitor, you can contact our sales team via this form.
