Tuesday, October 30, 2007

How do Marketers Measure Online Marketing?

While there is a big push these days to get to the true ROI of your online marketing campaigns, we don't seem to be there yet.

According to a Penton Media Custom Research study commissioned by PROMO Magazine, click-throughs and response rates are still mostly used to measure the success of marketing campaigns.

Measuring Email ROI

On another note, the DMA found that e-mail's ROI will reach $45.65 for every dollar spent in 2008.

Anna Chernis of the DNA claimed: "E-mail produces the highest response rate for lead generation —especially for house campaigns—of direct mail methods we have studied,"

The one item to note is that in 2005, email delivered
$57.25 for every dollar spent on it so there is a downward trend here.

Bottom line: You can produce with email but in order to secure your marketing budget, you need to prove that sales are directly related to your marketing efforts. Can you really prove marketing's effectiveness based on click-throughs? Here is one way you can use to improve the way you track your marketing campaigns using a closed-loop approach.

In addition, email ROI is decreasing but there are ways to leverage email with other marketing channels such as search, direct mail, podcasts and videos to help increase the effectiveness of email.

Happy marketing!

Chad H.

PS: Here's a related article over on ClickZ called:
Why E-Mail ROI Is So Amazing

1 comment:

Kevin said...

Interesting post. We also have top 5 metrics that should be measured by every site.

http://www.delphicsage.com/home/blog.aspx/d=376/title=Top_5_Web_Marketing_Metrics

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