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— Cost-Effective
Advertising —
The ramforless.com site has been up and running for several months
when a request comes in from Mark in marketing. It appears that he's placed five of
Denise's banner ads, and now he's looking for a way to track their progress.
To: E-commerce team
From: Mark, vp of marketing
Re: Measuring ROI
Team:
Hits and pageviews are important, but hey, the site is only three pages long!
Let's focus on real marketing numbers:
number of impressions distributed at source
number of leads from inquiry source
number of orders resulting from that source
cost of distributing impressions at source
With this information you can determine:
cost of generating a lead for each inquiry source
cost of sales for each inquiry source
Then we can test different media across a variety of inquiry sources and
determine which advertising tactics are putting us in the black and which are producing
red ink. This analysis can work not only for online media but also for print ads and
postcards that drive customers to www.ramforless.com. We just need to make sure people
enter their "savings codes" so that we know how they found our site.
If we can get these basics in place for the next release of the site, we'll be
able to show the top brass what return we're getting on the company's investment in
e-commerce and online marketing. And then we can get a bigger budget for the project next
year.
- Mark
The websites that are running your banner ads are giving you
clickthrough reports, showing you how many people came to your site during certain time
frames. But you still need to figure out which advertisements actually make money. It's a
good thing you picked an open application architecture for the site, because now it looks
as though you have an additional requirement: You need to start tracking.
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