Return on Advertising Investment

Marketing Managers are applying financial engineering methods to optimize their portfolio of marketing campaigns.

Tuesday, September 28, 2010


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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.

More on this topic

Increase the ROI of Online Advertising

February 2010

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.

The Effectiveness of Online Marketing for B2B

January 2011

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).

When Graphic Design Hides the Message

November 2009

Much too often, advertising designers emphasize visual appeal too much, forgetting the most important: efficiently communicating a message.

And that translates into wasting money. With the crisis forcing us to reduce costs in every front, we must demand results from our advertising investment.

Advertise Online - Count the Clicks - Optimize

June 2009

Advertising on the web is not only cheaper, it is also much more effective because its impact will be known quickly and it can be changed to optimize it.

Do not spend too much time thinking about “THE big idea” for a campaign. Put different banners on the web in different shapes and sizes, in different mediums, with different ideas and concepts.

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