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Sep 09, 2008

New Chart: Test for ROI to Get Best Bang for Your Online Advertising Bucks

SUMMARY: Online advertising is the focus of Chart of the Week for the next four weeks. This week’s chart looks at tests to help you determine how to spend your money. Base your decision on the way you determine all of your marketing: potential ROI.
Pick the Right Test to Determine ROI from Your Online Advertising

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Click here to see larger, printable version of this chart

We’ll be looking at online advertising for the next four weeks. Let’s start with the tests you run to determine the best bang for your online ad bucks.

In short, the test you choose should be determined in the same way the rest of your marketing is determined: potential return on investment.

Not every test is right for your marketing objectives. A test that works well against one strategy may not work well or provide the same ROI when applied to a different strategy. The table above may help in determining what to test – and in which circumstances.
o Step #1: Figure out which test meets your strategic needs
o Step #2: Calculate potential ROI assuming positive results
o Step #3: Find test options that meet both strategic and ROI-based budget constraints

Some tests are simply an investment of time; others need to be outsourced to specialists and will cost you cash. The most important thing to do is consider your objective when choosing what research to invest in.

Is your goal to increase brand awareness among your target audience? An A/B or multivariate test based on response metrics isn’t going to help you figure that out. An ad effectiveness study, on the other hand, isn’t very good at identifying the point in the purchase process where potential customers are abandoning.

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More Research Data from Sherpa:

MarketingSherpa’s 5th Annual Business Technology Marketing Benchmark Guide 2008–09:

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