I am not a handy person, but I know how to use a tape measure. If I use a tape measure to calculate the height of the fence, I can determine the value of the house, right?
Well, no, of course not.
However when it comes to Measure marketing effectiveness, We often make such a leap. We look at some arbitrary metrics, such as page views or downloads, and try to link them to return on investment.
In the latest episode Marketing manufacturer – For those engaged in marketing, I studied the sometimes incredible process of measuring the return on marketing investment – more specifically, the method of providing content to the marketing machine. I will guide you through the art and science of combining all these arbitrary numbers together, and tell a story about improving business performance.
Why is marketing measurement so difficult?
The book “Marketing Cost Management” written by James Culliton in 1948 introduced many ideas about marketing mix. The first episode of the marketing maker.
Part of the reason why I like this book is the introduction of Culliton. He wrote in the preface:
The discovery of the fact that I could not find what I was looking for at the beginning (useful data about the manufacturer’s marketing use) made the writing of this book disturbing.
Chapter 1 begins with the subtitle “I wish I knew…” and ends with the following observation:
The management of marketing costs is a job of “smart skills”. This work is not completely scientific, and many people at the same time believe that it will never be complete, but should be more than it is now. . . However, the emphasis on artistry or wisdom is not good for the other party, and no real progress will be made.
About 75 years later, the marketers still stay in place.
It seems that when Don Drapers of Madison Avenue roamed the earth, we didn’t seem to lose some ability suddenly. As long as this practice exists, marketers have been trying to find a return on marketing investment.
However, the idea of marketing as an “investment” is a relatively new development. The concept of Marketing Return on Investment (ROMI) was widely circulated in the late 1990s and early 2000s. Digital technology Commit to a more detailed analysis of marketing-related transactions.
Whether your acronym is ROMI or ROI, or even ROC (return on customer), the goal is the same: to maximize the efficiency of each marketing spend.
Are you measuring campaigns or assets?
In one view, the job of a marketer is to use the cheapest ingredients and combine the elements of the marketing mix in the cheapest way.
But this is the trick. This view leads marketing to a very specific goal-efficiency.
Efficiency is the simple ratio of useful output to total input. It is P/C-where P is the number of useful outputs (products) and C is the cost of resources consumed.
If marketing is only one of the total costs, this measurement method is good investment In the success of the business.
However, there is another side to marketing metrics. How do you measure an investment in an asset whose value increases over time?
Remember our ratio of measuring marketing efficiency? It is the number of products (ie media, events or events) divided by the cost of production.
In most cases, you have little control over costs (physical space, wages, etc.), and every company has to pay for it. You will work hard to get the best things and make the most of them.
But you may affect the products produced.
Involving traditional marketing and advertising Battle Exist in the form of a series of activities at a specific time. Imagine a TV commercial that has been broadcast for three months, a digital commercial that has run for a month, or an event sponsorship that lasts for a week. Once the deadline is over, these things are no longer investments.
Content marketing aims to create an asset that increases over time as the percentage of cost (relative to the value provided by the product) decreases.
For example, consider the value Monster.com created for it Career Counseling Center. In the first year of the site’s establishment, the site spent an actual budget, but viewed hundreds of thousands of pages. But by the end of the second year, it attracted 48,000 new potential customers, 22% of which were naturally acquired. It also created an efficiency of $3 million in the following areas: Paid advertising expenditure.
Essentially, you have two ways to make your company more valuable: you can increase revenue or increase efficiency.
From a measurement perspective, event-based marketing is almost always focused on improving efficiency and saving organizational funds.
with Content marketing, The focus is on creating effective content products (driven by audience engagement) to drive actions that continue to increase profits.
A marketing activity is a cost that provides value in an instant. Content marketing is an investment, and if done well, it can add value over time. This is why it should be measured as an asset.
#MarketingAd campaigns can provide value at any time. @Robert_Rose stated via @CMIContent that #ContentMarketing provides higher and higher value over time. #Measurement#MarketingMakers Click to tweet
Content Marketing Measurement Pyramid
Marketing metrics for both methods involve agreed reference points.
I like to consider marketing metrics from the perspective of an inverted pyramid:
It works as follows:
- Set a goal.This the goal Represents the investment value achieved through a common goal. It’s like “adding $10,000 in new income this year.”
- List your Key Performance Indicators. The agreed total measurement is the standard for assessing progress. Depending on your goals, these parameters may be average conversion rate, number of potential customers, quality of potential customers, revenue for each new customer, or other metrics.Determine how often to check Key Performance Indicators See if you need to correct the course. It could be monthly, weekly or daily, depending on the time you set for achieving your goals.
- Agree with the indicators. index It is a more fine-grained measurement of things that can help you achieve or optimize any KPI. Think of them as the “real need” numbers to optimize your KPIs.
Do you need more traffic to reach your goal? Do you need existing traffic to drive more conversions? It’s almost certain. Do you need better content? Do you need to test creatives? Do you need to try other paid media? Do you need to spend less money on PR? List everything you want to track.
This method provides you with a very organized and discrete set of metrics to help you measure your progress towards a specific goal.
You can then assemble a measurement pyramid for each goal of the marketing or content team.
The pyramid below shows four goals-two sports goals (the number of qualified leads increases by 10%, and the number of forms filled with potential customers in a year increases by 20%) and two contribution goals (the solvable range increases by 10%, The content is reduced by 10%.)
Since it affects KPIs, the indicators that need to be paid attention to include likes/followers, sharing, traffic, website time, content production cost by platform, traffic cost and SEO ranking.
What’s the next step?Measurement intent
What are our expectations for marketing measurement in the future?
One thing that will not change is that you need to understand what is critical to your business so that you can focus on measurement and improvement based on what you find. Recently, CEO Kate Bradley Chernis explained how her team measures the important content of this part.
So, what is changing? On the one hand, artificial intelligence will be increasingly used to process large amounts of data generated by digital content consumption.
In most cases, this measurement is used to understand who has entered our sphere of influence, and intention While they were there.
The idea of intent data is to determine the target audience and time of a particular campaign.
For example, many companies use website visits as a trigger to retarget visitors with ads.
There is a technology to track the behavior of visitors on the site and only target those who have taken the behavior that you define as a display of purchase intent. Intent data will determine whether to show other ads to specific visitors or not show ads at all based on the actions they take or don’t take.
In the next few years, there will be many artificial intelligence and algorithmic methods to measure marketing.
But remember, you don’t have to measure everything just because you can. Set the standard for measuring success and make sure to reach agreement to measure the progress of important things.
Don’t fall into the trap of making things important because they are measurable. Make them measurable because they are important.
Cover image: Joseph Kalinowski/Content Marketing Academy