Professor of Marketing
Right now, almost 54% of marketing budgets are dedicated to digital, which means that more than ever before, marketers need to be able to show a return on this investment.
The days of spraying and praying with digital marketing spend are over. So, too are strategies that focus on vanity metrics, including shares and likes. What’s needed now is a clear understanding of the digital landscape, customer journeys through it – and the touchpoints where conversion and lead generation are most likely to happen.
Professor Andreas Munzel, a digital marketing expert, says today’s integrated digital landscape gives marketers opportunities to drive up ROI. These are his valuable insights…
Understanding financial implications
Professor Munzel says a first step for marketers is to develop financial, as well as creative, capabilities.
He says: “Understanding the financial impact of marketing initiatives is paramount. Today’s digital marketing landscape requires marketers not only to be creative, but also to possess a profound understanding of financial metrics.”
Understanding metrics
It’s also important to ensure that digital marketing activities are measured – and that KPIs are aligned to strategic objectives.
Professor Munzel says this metrics-driven approach is critical if organisations are to get maximum returns from their digital marketing efforts. Why? Because it drives a focus on actions that directly influence financial outcomes.
In other words, the days of chasing vanity metrics are over. Instead, marketing teams must prove that activities result in leads and conversion.
He says: “Developing a comprehensive system of metrics, including a digital marketing return on investment (MROI), is essential for substantiating the financial value of marketing efforts.”
Using attribution models to boost ROI
Being able to identify the most profitable customer touchpoints is key to maximising ROI. This is because it allows marketers to more accurately target their spend – and tailor campaigns for different audiences.
But doing so in a mutli-touchpoint digital ecosystem can be complex. Professor Munzel believes this is where advanced attribution models have a critical role to play.
He says: "The adoption of advanced attribution models allows for a more nuanced understanding of how each marketing touchpoint contributes to the final outcome."
Experimenting to perfect
Marketers should also be making best use of analytics to identify the most successful campaign approaches – and to course correct along the way.
Professor Munzel believes A/B testing plays a vital role in refining campaign ideas – and maximizing the impact of marketing spend.
He says: "Experimentation lies at the heart of digital marketing success. A/B testing allows us to empirically determine the most effective strategies, facilitating agile adjustments and optimisation."
Using data to allocate budget
Using the insights provided by advanced attribution models, marketers can understand how to best target their efforts.
Professor Munzel says: "By understanding the specific contributions of each marketing channel, we're able to allocate our budgets more efficiently, maximising the ROI of our digital marketing investments."
Marketing teams have always been under pressure to prove ROI. However, with budgets tightening, there is more demand than ever to be able to do more for less.
The good news is that leveraged intelligently, today’s digital ecosystem can empower marketers to create even greater value.
Eager to know more? Discover our programme 'Digital Marketing' and learn to create future-proof, technology- enabled digital marketing strategies.