As the overall consumer attention span is plummeting by the day, companies are fighting to capture fleeting eyeballs with maximum impact by boosting their marketing spend, especially for digital marketing. According to a Deloitte study, companies have seen over a 33% boost in performance due to their Digital Marketing efforts in 2020 alone. Based on this 2020 growth, the study predicted another 15% jump by the end of 2021. While these statistics indicate that companies have benefited immensely from Digital Marketing to get the maximum ROI, much deliberation is needed regarding the specific Digital Marketing strategy and platform an organization must spend on. Here are a few things organizations must consider to ride the digital marketing wave most effectively.
ROI is a measure of an investment’s efficiency. It is calculated as, ROI = (revenue/cost of investment) x 100. For example, an investment with a profit of $400 and a cost of $400 would have an ROI of 100%, meaning that for every dollar invested, one dollar was earned in return. ROI should be considered alongside other factors such as risk and time horizon when evaluating an investment’s success.
To begin with, businesses and their designated marketers need to define the objectives of the marketing activity, be it exclusively engaging industry players, as is often the case in B2B enterprises, or directly targeting the retail consumer.
For example, according to Word Stream, the average landing conversion rate is 2.58%, while the top 25% of performers achieve a conversion rate of 5.31%. This finding by the marketing giant reveals that conversion rates, as well as required strategy, both vary as per the company. Therefore in the absence of a one-size-fits-all approach, marketers and their clients need to set the aim of the campaign, which once set, makes it easier to choose the right platform for the next step.
Some of the most common goals of campaigns are spreading brand awareness among existing or new customers, boosting brand visibility to capture the attention of the target audience, giving a personalized experience to the consumer, and gleaning consumer behaviour metrics to optimize marketing efforts.