The growing concern from Marketing Managers about return on advertising is making them look more and more like financial managers.
Many millions are spent on advertising (in Central America about $ 1.8 billion per year), usually in a mix of different types of media and to apply expense optimization methods of portfolio investments, will lead to better rates of return on investments.
Here are some tips to optimize a marketing portfolio:
1 - Set the goal ROI
Leave for creative artists the pride of getting the best piece of advertising. The goal of CMO is ROI.
2 - Measure results
It is essential in order to evaluate and monitor, to measure as accurately as possible, the real benefit of each element of your marketing program.
3 - Consider the risks
Proper planning of the media mix should take into account the different success probability (risk) that each particular campaign has.
4 - Be cool and disciplined
Do not fall in love with a particular media. Don´t allow personal preferences make mistakes.
5 - Diversify
Do not put all your eggs in one basket. A well-designed plan should combine traditional media (TV, print, radio) with online media (banners, social media, email, search).
6 – Don´t pay more
Some current popular means, such as social media, are overpriced. Not necessarily because they are currently popular they will produce a positive ROI.
Advertising online is not an option anymore but a necessity, and requires stricter planning than traditional advertising.
Every cent spent in an advertising budget must be carefully planned. These are though times, with fierce competition in all fields. Preparing successful advertising campaigns requires a lot of work, and actions in several fronts.
Business to business advertisers which objectively measure the return on their investment in online marketing, believe it is more effective than traditional marketing.
According to a report from AMR International, among B2B advertisers who measure the return on their advertising investment, 64% say the Internet is the media which has given them better performance (ROI).