The Anchor: 5 reasons why advertisers don’t get desired ROI from Digital Media plans

02 Jul,2012

By Siddharth Puri

 

1. Advertisers inability to identify right metrics to evaluate media plan performance

Digital Media advertisers end up creating metrics which are not 100 per cent aligned to the business goals, which they wish to achieve, with campaigns being driven via digital media planned. For example, e-commerce advertiser looks to advertise and drive more transactions, but instead deploys money on media and optimizing media plan for a metric such as number of visits received on the e-commerce store front, instead of owning up to all metrics in the funnel till business objective of transaction. Lot of advertisers end up treating metric like on-site conversion ratio as black box instead of demystifying up to product searches, carts created, number of users reaching closer to end metric of transaction and optimizing media plan on deeper in sales funnel metrics.

 

2. Cross Digital Media Channel Attribution Management

Digital Channels have evolved from being a single channel to a medium with multiple media channels like social, search, display, mobile, affiliate among many others. With advent of multiple channels and ability to measure via technology, it is important that the advertiser doesn’t make a mistake in establishing, not only channel which leads to last content before conversion of customer in campaign, but the medias which lead user down the funnel.

 

Performance channels like Search and affiliate networks sit lower in funnel and closer to conversion, but study of users’ path before conversion reflects strong display activities with correct frequency and media placement on media plan reflected as high as 50-60 per cent work done to influence conversion.

 

3. Digital Media plan created with over-dependency on single creative format type

To create 360 degree impact, it’s important that all formats, including Mailers and Text Ads, beyond Display should be used effectively to capture the user intent created. What’s required is the ability to synchronize communication across formats to deliver higher ROI than single creative format type plans.

 

4. Measuring of Google as single property/channel on media plan

Google is made up of multiple line items for an advertiser for instance:-

1. Brand Keywords – Users search for your branded products and are captured via Google text ad words advertisers at the cheapest cost. The ROI should compete with your SEO/organic traffic metrics as there is no effect of advertising but ability for technology to funnel direct demand for you. 30 per cent is the ideal spend for a brand advertiser.

2. Non Brand Keywords – Spend done on this bucket is for placing your ads in front of category specific searches happening and trying to influence or win SOV – 40 per cent spend for an advertiser

3. Google Content Network – Spend done on this bucket is to place your ad in contextually relevant environment basis audience targeting driven from content on page taken as input or measurement of relevance. This category constitutes approximately 30 per cent of an advertisers spend

 

From a ROI cost perspective, the above channels have been listed in order of their cost to return ratio, indicating clearly that the average ROI delivered by Google is lesser than ROI metric achieved on non brand keyword due to averages from brand keywords making other channels on digital media plan look ineffective in meeting goals. If, as an advertiser you treat all the three as different channels, you will be able to increase ROI efficiency on your media investments by 30-40 per cent.

 

5. Ad Network buys which constitute 20 per cent of the media plans are bought on price with comparison of channel against Search than Display Properties

Ad Networks are fundamentally Display Format Publishers and hence inherit strengths and weaknesses of Display. Their performance and optimization which can be achieved is similar to display properties. One uses Ad Networks over display properties due to the technology which brings along additional optimization capability beyond creative and placement optimization. Digital Media plans are being developed as operations plan rather than strategy plans. If brands marketers/advertisers change their approach to Digital Media plans, they will be able to generate desired ROI since the Demand being less than Supply scenario still exists on digital media.

 

Siddharth Puri is the Business Head, Tyroo Direct

 

Post a Comment 

2 responses to “The Anchor: 5 reasons why advertisers don’t get desired ROI from Digital Media plans”

  1. Siddharth P says:

    Appreciate you liking the content will try to simplify the language next time 🙂

  2. Sunny says:

    Mr Sid. Nice article but why can’t do you have to complicate things in order to drive your point.
    Half your sentences seem extremely complex to even gauge the very essence of your message.

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