Marketing has never been easy to measure. In this video, learn about the challenges of calculating ROI. Learn about the AIDA model and the external factors that can influence marketing results.
- [Narrator] There's a great quote by Jon Wanamake "Half the money I spend on advertising is wasted; "the trouble is I don't know which half." This is so true. Despite all the metrics available, it's particularly tough to know how much money you make from something like social media because it focuses so heavily on brand reputation and connections. The AIDA Model identifies stages an individual goes through during the buying process for a product or service, and we target each of these stages in marketing and with social media. Awareness, often it's difficult to isolate the activity that first generates awareness of your product or service.
Perhaps, harder still to identify the trigger point for real interest, when the prospect wants to find out more about your business. And then, converting that interest to a desire to purchase and to take action. There are many trigger points and multiple touchpoints for the prospect before purchase. Research says you need seven or more for every sale. So, to which marketing activity do you attribute success? The one that first generates awareness, or the final call to action that may trigger the sale? Social media doesn't work in isolation of other marketing activity.
Aside from multiple inputs, there are external factors that may influence our prospects, factors that may or may not be within our control. These can vary from politics to competitor activity, and even the weather. We often classify these external factors using PEST, Political, Economic, Social, and Technical. We need to be aware of both our micro and macro environment when assessing the effectiveness of marketing activity. It's the challenge of calculating ROI.
We may need to add a narrative to our calculations, and we will look at some of these calculations further on in the course. The other factor that makes marketing activity difficult to measure is time. It's difficult to switch marketing off. There's rarely a clear start and finish to activity. Yes, you can run time specific campaigns, particularly around seasonal events, but your business always has a presence, whether that's a physical store, a website, or a social media profile for your customers to see.
- Linking business strategy and social media
- Looking at the challenges of calculating ROI
- Determining the cost of social media
- Defining ROI
- Calculating social media marketing ROI
- Determining the financial and nonfinancial benefits of social media