Pick the Right Test to Determine ROI from Your Online Advertising
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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. Useful links related to this articleNot a Subscriber to Sherpa's Chart of the Week? Click Here to Get a New Chart Delivered to Your Inbox Every Tuesday!
More Research Data from Sherpa:
MarketingSherpa’s 5th Annual Business Technology Marketing Benchmark Guide 2008–09: