These metrics are a reference point to measure the effectiveness of social media campaigns, but I assure you that no brand has as its annual plan objective, to increase the CTR of its ads by 2% or to have 1,000 'likes' on social media posts, but most companies and I mean 99% have an annual growth goal expressed in “MDP's” (millions of pesos) or a percentage of growth compared to the previous year, but also expressed in money.
In this sense, agencies must migrate the models of reporting the success of a campaign in the Return on Investment (ROI) that our work generates, the new CMOs are clear that for every peso they invest in digital platforms they must obtain that weight, plus a return profit to consider that their campaigns are being successful. But what do agencies need to do in the face of this truly new normal?
4 points to measure the effectiveness of your business
#1 Clear objectives
Knowing the client's objectives, preferably quantified in money, this will allow calculations and projections to be made that are much closer to reality. Sell results, not illusions.
#2 Measure
This seems obvious, but in the middle of 2020, we have encountered clients who come from other agencies that do not measure the results of the campaigns or measure them poorly, this does not mean that you have implemented Analytics poorly, I mean that they do not measure the entire sales process, whether direct or through leads and worse still, they do not know what to do with the data they extract from the platforms. Data should help you make better decisions, in the end what makes digital advertising different from conventional advertising is the accuracy of the impact of the campaigns and with this information we can optimize and improve every day.
#3 Project
Today has already passed and tomorrow is too late for decision making, the secret of successful long-term campaigns is precisely to use the data that results, to be able to make future projections about the investment and results that we can obtain.
For this to make sense, you must take into account temporalities and acquisition costs. Thus, investments will not be linear, but based on data that makes us more efficient.
#4 Monetize
It is similar to point 2, but goes a little further and is worth seeing independently. It is about assigning the specific value to each platform, each format and each advertisement, this will determine how much money each member of your 'media mix' is leaving you. In this sense, the more precise your measurement is, the better decisions you will make in your next planning and ROI projections.
By the way, here are the famous anglicisms with which we measure success in real value:
Metrics that impact your business
#1 ROI (Return on Investment) is the return on investment or the monetary value generated from Marketing efforts.
Formula (income-expenses) / expenses x 100
#2 ROAS (Return On Advertising Spend) is a slightly more advanced metric that allows us to know the return on advertising investment calculated in relation to the amount invested and the amount obtained with said investment. With this metric we know how much we have earned for each peso we invest in advertising.
Formula (income/investment) / x 100
Now that you have a broader overview of the KPIs that your company needs, think about whether the agency you work with is giving you the results you expect.
If you are part of an agency, we invite you to raise the quality a little when it comes to reporting metrics that have value or defining KPIs in your digital strategy for ones that are truly relevant to business experts.
