Proving Marketing ROI: A Digital Marketing Framework

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View metadata, citation and similar papers at core.ac.ukbrought to you byCOREprovided by Bowling Green State University: ScholarWorks@BGSUBowling Green State UniversityScholarWorks@BGSUMaster of Arts in Media and CommunicationPlan II Graduate ProjectsSchool of Media and CommunicationSummer 7-7-2017Proving Marketing ROI: A Digital Marketing FrameworkAndrew WiltsieBowling Green State University, adwilts@bgsu.eduFollow this and additional works at: https://scholarworks.bgsu.edu/ms smcPart of the Advertising and Promotion Management Commons, Marketing Commons, Public Relationsand Advertising Commons, and the Social Media CommonsRecommended CitationWiltsie, Andrew, "Proving Marketing ROI: A Digital Marketing Framework" (2017). Master of Arts in Mediaand Communication Plan II Graduate Projects. 2.https://scholarworks.bgsu.edu/ms smc/2This Plan II Graduate Project is brought to you for free and open access by the School of Media andCommunication at ScholarWorks@BGSU. It has been accepted for inclusion in Master of Arts in Media andCommunication Plan II Graduate Projects by an authorized administrator of ScholarWorks@BGSU.

June 30, 2017

Proving Marketing ROI: A Digital Marketing FrameworkAndrew WiltsieA master’s project submitted to the faculty ofBowling Green State Universityin partial fulfillment of the requirements for the degree ofMaster of Arts in Media and Communicationwith a Specialization in Strategic CommunicationDr. Claudia Y. Owens, D.M.Date Approved: June 30, 2017

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORKiiExecutive SummaryThe era of digital marketing has arrived full steam ahead, and there appears to be noend in sight. While the old-fashioned, proven methods of traditional marketing (such astelevision, radio, and print) still hold their place in shopper marketing today, the rapidevolution of technology caused by the Internet has led to a correspondingly rapid shift fromtraditional marketing to digital marketing channels. As pressures on chief marketingofficers (CMOs) to prove marketing ROI are increasing, many brands are electing to usedigital marketing because of its proven ability to provide easier methods of tracking ROI,and its cost-efficiency.The purpose of this study is to analyze emerging literature on the best practices inselecting marketing objectives, web analytics/KPI goals, and marketing mix channels byusing digital marketing to provide executives with proof of marketing ROI. Evidencebased research was used to analyze emerging trends in digital marketing by combiningliterature on setting marketing objectives, web analytic and KPI goals, and selectingmarketing mix channels. This study will contribute a framework that can be used by botheducators and practitioners to showcase the most common practices in digital marketingand how they can be applied to create an effective and efficient digital marketing campaignthat can quantify and prove marketing ROI.

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORKiiiTable of ContentsChapter One: Introduction . 1Introduction . 1Statement of Problem . 4Significance to the Problem . 5Theoretical Background . 6Research Questions . 6Purpose . 7Definition of Key Terms . 7Summary . 9Chapter Two: Systematic Literature Review . 11Introduction . 11The Challenge of Designing a Marketing Brief . 11The Issue of Marketing ROI . 11The Trend of Digital Marketing . 12Research Question One . 14Theoretical Framework . 14Setting Marketing Objectives . 15Research Question Two . 17Theoretical Framework . 18Setting Web Analytics/KPI Goals . 19Research Question Three . 21Selecting Marketing Mixes . 21Summary . 23Chapter Three: Conceptual Model . 24Introduction . 24

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORKivComponents of Conceptual Model (Figure 3.1) . 25Increase: Brand Awareness, Digital Traffic, and Organic Search . 25Increase: Brand Knowledge, Search Traffic, Sales Leads, and ConsumerParticipations . 26Increase: Sales and Product Trial . 27Increase: Consumer Loyalty, Digital Traffic, and Repeat Consumers . 27Components of Conceptual Model (Figure 3.2) . 29Abandonment Rate . 29Bounce Rate . 29Click-Through Rate. 30Conversion Rate. 30Cost Per Click . 30Cost Per Sale . 31Customer Satisfaction . 31Downloads . 31Email Delivery Rate . 31Fans/Followers/Likes . 32Growth Rate . 32Impressions . 32Mentions . 33New Visitors . 33Online/Offline Sales . 33Online Reach . 34Open Rates . 34Recency/Frequency of Visit . 34

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORKvRepeat Visitors . 35Revenue Per Visit . 35Sales Lead Volume . 35Share of Audience . 36Share of Search . 36Share of Traffic . 36Share of Voice . 36Shares/Comments/Video Completions . 37Shopping Cart Start/Completion Rate . 37Sign-Ups. 37Time on Site. 38Un/Subscribe Rate . 38Unique Visitors . 38Components of Conceptual Model (Figure 3.3) . 39Display Ads. 39E-Competitions . 40E-Couponing . 40Email Marketing . 40Mobile Marketing . 41Online Public Relations . 42Search Marketing . 43Social Media . 43Viral Marketing . 44

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORKviWebsite . 44Summary . 45Chapter Four: Recommendations. 46Introduction . 46Key Recommendations . 48Recommendation One – Develop a Framework for Setting Marketing Objectives . 48Recommendation Two – Develop a Framework for Setting Web Analytic/KPI Goals. 51Recommendation Three – Develop a Framework for Selecting Marketing MixChannels . 54Recommendation Four – Develop the Framework for a Marketing Brief . 56Summary . 57Chapter Five: Conclusion . 59Introduction . 59Gaps in Literature . 59Suggested Additional Research . 60Conclusion (Significance to Scholarship and Practice) . 61References . 63

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORKviiList of TablesTABLE2.1Marketing Objective Themes . 172.2Web Analytic/KPI Measurement(s) . 202.3Marketing Mix Channel(s) . 22List of FiguresFIGURE3.1What is the objective for your marketing campaign? . 243.2What are the Web Analytics/KPI goal(s) for this objective? . 283.3What are the Marketing Mix tactics for this Web Analytics/KPI goal(s)? . 394.1Marketing Brief Framework . 57

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK1Chapter One: IntroductionIntroductionThe increasing use of internet, mobile, and tablet technologies by consumers isdriving a new understanding in shopper marketing. As a result, marketers are increasinglyable to use data and web analytics to gather consumer insights that help determine andjustify marketing strategies (MediaMath, n.d., p. 4). Concurrently, since the turn of themillennium, a new discipline – now known as shopper marketing – has emerged, andcontinues to gain momentum and cement itself as a critical piece in marketing toshoppers across the world. Shopper marketing presents many definitions, ranging fromvery broad to extremely narrow, but through examination of literature shopper marketingcan briefly be described as: “A cross-functional discipline designed to improve businessperformance by using actionable insights to connect with shoppers and influencebehavior anywhere along the path to purchase” (Breen et al., 2016, p. 55). One of the keyfactors leading to the rise of shopper marketing is how it differs from traditionalmarketing. Traditional marketing focuses on consumers and their patterns ofconsumption, while shopper marketing acknowledges that consumers have needs beyondconsumption, and continues to target them while they are in “shopping mode” (Shankar,Inman, Mantrala, Kelley, & Rizley, 2011, p. S29; Silveira & Marreiros, 2014, p. 93).Although shopper marketing is still a relatively new discipline in the marketingfield, it has evolved dramatically in recent years. “Shopper marketing today not onlyfocuses on driving sales, but on understanding what drives shoppers to the store and whatother items they might buy” (MediaMath, n.d., p. 4). The increased emphasis on data isnot only felt by shopper marketing agencies, but also by their clients. Although many

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK2clients have decreased marketing spend during difficult economic times, this has notstopped top executives from requesting proof of marketing return on investment (ROI)(also referred to as return on marketing investment – ROMI) from the marketing dollarsthey do spend. “There is an increased pressure to justify expenditures, and resulting incompany execs struggling to measure the success and return on marketing investment(ROMI) of marketing programs and campaigns” (Bawab, 2014, p. 67). As companyexecutives find a gap between the promise of data and its practice in marketing inachieving ROMI, CMOs are left with limited financial and creative flexibility to developthe appropriate marketing mix (Hanssens & Pauwels, 2015, p. 173).Literature demonstrates that retail digital marketing spend alone is predicted tojump to more than 20 billion by the year 2020, a significant increase from 13 billion in2015 (Allen, 2016, para. 2), and total digital marketing spend is expected to exceed 120billion by 2021 (VanBoskirk, 2017, para. 2). With most retailers agreeing that digitalmarketing spend provides a significantly higher ROI than traditional offline marketing(RetailMeNot Inc., 2016, p. 2), many clients are using emerging technology as a morecost-effective and efficient way to market, leading to increased spend on, and use of,digital marketing tactics in their marketing mix.While clients frequently view digital marketing as a crucial tool to provideevidence of marketing ROI, research demonstrates a lack of understanding in how toappropriately find and showcase the web analytics uncovered through digital marketing.The inevitable result of a constantly evolving set of digital tools, coupledwith a dearth in adequate training, is a generation of marketers who aremore prone to failures; either because they simply can’t keep up with the

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK3digital trends, or because they aren’t adequately equipped to implementthem successfully. (Sitecore, 2014, para. 8)As these factors create challenges for digital marketing and its ability to provide evidenceof marketing ROI, it becomes evident that the agency must work to ease the gap andprovide clients with the knowledge necessary to make decisions when determining theirdigital marketing mix.Evidence shows that 74% of clients want to be “data-driven” but only 29% claimthat they are effective at turning their analytics into actionable data (Hopkins, 2016, para.1). Combining the lack of knowledge with an inability to turn data into the proper ROI, itbecomes important for agencies to guide their clients to where they want to be to meetmarketing objectives. More CMOs are requesting that their agencies “lead” rather than“serve” their companies to help achieve their marketing objectives (Rooney, 2015, p. 2),emphasizing the ability of agencies to manage capabilities and to guide clients throughthe process of creating the proper marketing mix.While helping a client create an effective and efficient digital marketing mix mayseem simple, agencies must work to guide clients through the appropriate steps to createthe perfect marketing mix to achieve their objectives. Although research exists on thevarious steps required to create a digital marketing mix, there are no guidelines to aid thedecision-making process for marketing objectives and web analytics for a digitalmarketing mix.

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK4Statement of ProblemWith the increasing digitalization of marketing, CMOs are confronted with“increasing complex and rapidly changing markets which are beyond their control”(Leeflang, Verhoef, Dahlstrom, & Freundt, 2013, p. 4).Once you have decided that you do, in fact, need to pursue some form ofdigital marketing, the next step is actually to sit down and define yourstrategy. Unfortunately, there is no ‘one size fits all’ strategic panaceahere. (Ryan, 2017, p. 24)The issue facing many shopper marketing agencies conducting digital marketing strategyis that their clients do not always know, understand, or communicate their objectives.This results in a lack of focus in setting the appropriate web analytics and KPIs that willhelp the agency create the appropriate marketing mix aimed at meeting the client’smarketing objectives. With pressures on CMOs to provide proof of marketing ROIincreasing, and no ‘one size fits all’ digital marketing mix to meet all possible marketingobjectives, agencies and clients must work together to align on objectives and metrics tocreate the most effective and efficient digital marketing mix. A marketing brief can helplay the framework of a marketing campaign, and therefore help create the marketing mix.The brief enables shopper marketing agencies and their clients to verify marketing resultsat the end of the campaign, to determine whether it was successful (Lake, 2016, para. 1).The problem is that nobody has designed a marketing brief to guide clients through thedecision-making process of determining marketing objectives and analytics goals fordigital marketing campaigns.

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK5Significance of the ProblemIn today’s business landscape shopper marketing agencies and their clients arefighting for each marketing dollar, thereby increasing the importance of creating effectiveand efficient marketing strategies. With sales being viewed by executives as one of theleading ROI measurements, and with new research adding more elements to marketingROI, the emerging evidence shows that online advertising can provide as much as threetimes the marketing ROI by using analytics such as purchase-based data (Nielsen, 2012,para. 1), leading CMOs to turn to digital marketing as their tool for more effective andefficient marketing mixes. As shopper marketing agencies and their clients work togetherto build these efficient and effective marketing strategies and mixes, research revealsimportant hurdles to proving ROI.Research shows three major challenges that shopper marketing agencies and theirclients must overcome to succeed in digital marketing. These challenges includecustomer insights, metrics, and talent gap, all of which involve data and the underlyingcapabilities for analyzing data, which in turn provide firms a deeper and more actionableunderstanding of how marketing can contribute to a stronger performance in the digitalenvironment (Leeflang et al., 2013, p. 10). The root of these underlying challenges is thatclients do not know what to do with data to create the correct marketing mix for theproper marketing ROI.Concerns from clients regarding questions of the agencies ability to execute aneffective and efficient marketing campaign bring the problem into focus: agencies mustprove their worth by guiding their clients through the process of understanding what their

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK6objectives can achieve and how the agency can create a marketing mix to providemeaningful web analytics that can prove marketing ROI.Theoretical BackgroundFor shopper marketing agencies to create the most effective and efficientmarketing mix they must understand how consumers go through the process ofpurchasing, similar to the path-to-purchase concept of shopper marketing. EdwardStrong’s AIDA model shows that for an advertisement to be effective it must: (1)command Attention; (2) lead to Interest in the product; (3) create a Desire to own or usethe product; (4) and finally, inspire Action (Karlsson, 2007, p. 12). This model will serveas the theoretical foundation for guiding clients to marketing objectives.As marketing objectives are selected shopper marketing agencies and their clientswill begin choosing the web analytics that will gauge the success of their digitalmarketing campaigns. The theoretical background for this step will be Russell Colley’sDAGMAR model. DAGMAR, or Defining Advertising Goals for Measured AdvertisingResults, was created to encourage measurable objectives for each stage of a marketingcampaign (Karlsson, 2007, p. 13). This theory will be reviewed to help understand theneed and desire for web analytics in the new digital marketing era, in search of marketingROI based on marketing objectives.Research QuestionsRQ1: What does the literature suggest are the best frameworks for digital marketingobjectives?RQ2: What does the literature suggest are the best web analytics/KPIs for achieving aclient’s digital marketing objectives?

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK7RQ3: What does the literature suggest are the best digital marketing mixes for achievinga client’s web analytics goal(s)?PurposeThe purpose of this master’s project is to analyze emerging literature on digitalmarketing: objectives, web analytics, and tactics to recommend a marketing brief thatwill be discussed between a shopper marketing agency and its client prior to the creationof a digital marketing strategy. The brief will help the client determine what the desiredobjectives are, which will lead to a discussion on what web analytics best achieve thisobjective, and will aid shopper marketing agencies in determining the best marketing mixneeded to meet the overarching objectives and illustrate marketing ROI, using webanalytics. This systematic literature review will assist in developing a communicationbrief that will, in turn, help create an effective and efficient digital marketing mix throughdiscussion with the client, to select the marketing measurements and web analytics thatwill determine the marketing ROI for a marketing strategy.Definitions of Key Terms Clients: Businesses that use shopper marketing agencies for execution ofmarketing campaigns. Typically headed by Chief Marketing Officers (CMOs). Consumers: Individuals who purchase a client’s goods and services and thetargeted audience of a client’s marketing objectives. Consumer Packaged Goods (CPGs): “ a wide variety of food, beverages andgeneral merchandise pre-packaged for sale to consumers” (Breen et al., 2016, p.20).

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK 8Digital Marketing: “Any communication delivered through a digital technology,including the internet, networked place-based signage, in-store kiosks, personalshopping assistants, video games, and mobile phones” (Breen et al., 2016, p. 23). Effectiveness: The number of desired effects a marketing communication creates(Batra & Keller, 2016, p. 132). Efficiency: The cost of those marketing outcomes created (Batra & Keller, 2016,p. 132). Key Performance Indicators (KPIs): “A statistic or data point used to measurethe success of a business plan or marketing program” (Breen et al., 2016, p. 40). Marketing Brief: (Also referred to as a Communication or Creative brief) Adocument used lay the framework for marketing initiatives or campaigns (Lake,2016, para. 1). Marketing Mix: A set of controllable marketing tools and tactical components ina marketing plan used by a company for creating a desired response in thetargeted market (Khan, 2014, p. 95). Marketing Objective: The information provided by a client regarding desiredreactions from targeted consumers to a marketing strategy. Retailer: An individual or business that sells goods for use or consumption. Shopper Marketing: “The employment of any marketing stimuli, developedbased on a deep understanding of shopper behavior, designed to build brandequity, engage the shopper (i.e., an individual in ‘shopping mode’), and lead himor her to make a purchase” (Shankar et al., 2011, p. S29).

PROVING MARKETING ROI: A DIGITAL MARKETING FRAMEWORK 9Tactic: The tools and mediums used to implement a marketing strategy in amarketing mix (Hemmila, 2016, p. 22). Traditional Marketing: Marketing methods characterized by tactics includingnewspapers, magazines, telephone, books, radio, and TV (Lavinsky, 2013, para.6). Web Analytics: “The measurement, collection, analysis and reporting of Internetdata for the purposes of understanding and optimizing Web usage” (Jarvinen &Karjaluoto, 2014, p. 5).SummaryThis paper is a systematic literature review designed to help shopper marketingagencies and their clients understand the information needed to help the agency create adigital marketing mix that will provide evidence of marketing ROI for the client. Thispaper will review evidence-based literature on technological advancements

Proving Marketing ROI: A Digital Marketing Framework Andrew Wiltsie Bowling Green State University, adwilts@bgsu.edu . still hold their place in shopper marketing today, the rapid evolution of technology caused by the Internet has led to a correspondingly rapid shift from traditional marketing to digital marketing channels. As pressures on .

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