Digital ROI

IRI Macroview Big Question, Digital ROI:

How can I make the most of digital media investments to grow my brand?

By Martin Wood & Carl Carter

Digital Media
With the advent of the virtual world and hand-held devices digital media has become an important method of advertising. Nowadays advertisers find themselves with a whole host of options on where to place their marketing spend. But how do marketers choose which method of advertising to use, and how do they know the impact of each on their bottom line.

What is digital ROI?
To work out the return on investment (ROI) of a marketing initiative you create a ratio. This ratio explains for every £1 spent, how much incremental revenue you get back for that pound.

ROI = Revenue from Investment – Cost of Investment
Cost of Investment

A key measure for any marketing campaign is the ROI it gains. So how can you measure Digital ROI? And how can you measure Digital ROI for FMCG brands?

Often digital advertising does not lead to direct sales on a website, they may happen in-store or on the internet at a later time. So many marketers turn to other key performance indicators to determine the success of a digital media campaign instead.

However it is possible to identify the true ROI of a digital media campaign. IRI has carried out hundreds of these evaluations on behalf of clients by using econometric regression modelling of granular store-level EPOS data. The models control for various marketing inputs with a great degree of accuracy. Sales uplifts can be decomposed and attributed to specific marketing inputs and when their associated media costs are included in the analysis, IRI can provide the ROI for the marketing activity.

Digital ROI Benchmarks
From these hundreds of digital media ROI studies, we have provided lists of media ROI benchmarks and digital media ROI benchmarks within the digital media Big Question white paper.

The Big Question, digital media
This new Macroview Big Question white paper draws on the teachings of Byron Sharp, esteemed academic and author of 'how brands grow‘.

Using Sharp's recommendation that to drive brand growth companies need to firstly increase penetration, this white paper identifies how you can do just that using digital media marketing. 

Using geographically clustered EPOS data, we show you how it is possible to identify target areas to focus digital media activity towards; areas of light and non-buyers. Thereby improving purchase penetration and therefore increasing the size of your brand.

If you want to learn more on how to drive brand growth using digital media, and how to make your digital media more efficient and effective, read the white paper below.


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