Can A Specialist Digital Agency Help In Improving Your ROI

Asha Ravaliya, CFO, BC Web Wise

Asha Ravaliya, is CFO at BC Web Wise

In the new world of marketing, Return on Investment (ROI) has become a key performance indicator for marketing managers. The shift is towards a real-time approach to evaluate how well marketing strategy is working, and how and where money can be best spent. Ideas are still the foundation of creative strategy, but it today has to match the medium of advertising – and most importantly, deliver the goods.

BUDGETING FOR TRADITIONAL V/S DIGITAL ADVERTISING

Digital spends have started carving out a bigger chunk of the advertising pie.  But it is not just the incremental monies that are increasing. No longer do traditional/mainline ad agencies monopolize the client’s time on planning for a campaign. Most clients who have realized the digital opportunity involve their digital agencies right from the beginning of a launch/campaign. Joint meetings are held for the briefs, and thereon for shaping the entire campaign. And given the spread of digital work, often enough more time is spent in doing spadework together with the agency on all the digital touch points, and the customized communication that one needs for each.

SO CAN DIGITAL AGENCIES DELIVER BETTER

A specialist digital advertising firm thrives on digital business. Your business is critical to digital outfits, and as a result there is no choice but to be very responsible for delivering returns. Work with a digital arm of a large advertising agency, if you can treat the digital arm independent of how you treat the mainline. Expect a common spread sheet for budgeting, measuring deliverables, and you risk undermining the extent to which you can exploit digital power.

IT IS SIMPLE MATH

If your overall advertising spend has anything less than 10 per cent on digital, but natural that your full-service agency will be biased towards the medium that has the higher spends. Unwittingly digital work can get a step-motherly treatment, even if the top brasses of the network realize that digital is the next wave. This is simply because right here, right now, the team that’s working on your project has to act on the entire budget allocated to them. With campaign pressures, it would be very difficult to focus on deliverables from the smaller of the campaign elements, however critical it might have appeared at the start. Even you as a client, may allow digital to take a backseat since the agency is finally going to be measured with the total scores on the report card.

HOW CAN YOU HELP YOUR DIGITAL AGENCY TO DELIVER BETTER ROI

Considering that you have indeed allocated smaller of the budgets to a digital agency, the best way to help the one who is working for you is by giving them a better leverage on budgets by centralizing the work on all your brands with a single agency. So other than having better understanding of the digital medium, the need for the digital agency to deliver, bigger budgets that result due to centralization can give your agency better economies of scale, be it related to optimization of media budgets, dedicated resources on your account, investing in research, tools, etc. A single AOR for digital medium for all the brands can help securing the volume the agency will need, and will finally benefit you as the client. Clients can also get better rates having consolidated their business and assuring revenue to its digital agency, all finally resulting in better ROI.

DIGITAL AGENCIES WORK WITH SMALLER OVERHEADS

Mainline agencies that have been around for a longer time, and have managed to build layers of cost that add to their overheads. Moreover digital work is often outsourced by the larger agencies, and they do add their premium to the costs actually incurred. Digital agencies have largely emerged only in the last decade. Since budgets have always been smaller for digital work, specialist digital agencies have learnt to keep their costs in control, being wary of large sized conference rooms, work stations, walled cabins, limos for their top brass, and all the perks that may have come with it. A purchase manager while negotiating and justifying why he paid more for a mainline agency simply stated that it was fair because of the overheads they had, siting the office location, the size of their office, etc. Really, it is time to step back and take a look at the amount of investment that is going into addressing nice-to-haves that your brand might not be in a position to address today.

CREATE COMPETITION & BENEFIT WITH HARDER WORKING AGENCIES

By keeping two separate agencies for traditional medium and digital medium, you do keep both your agencies on their toes. Larger agencies are waiting to grab the digital business, and the smaller digital agencies just work harder to deliver and build client relationships and incremental allocations of budgets as well as keeping any competition at bay.

Your advertising rupee will really turn to be the investment it is meant to be, and not an expense that it often turns out as, if done with the 3Rs – Right medium, Right budget & Right partner

What Is The Future of Digital Marketing, A Marketer’s Guide – 2012-22

Digital can be mainstream in 10 years

Youth in the larger metros and hand-held devicescould be responsible for driving this change.

Why?

  • Already a major source for news even in real-time
  • TV networks seeking online model to secure their share of the online revenue pie.
  • Online ads are not just cheaper, but efficient and can be customized and served in real-time.

Social Communities Will Be a Part of Life

Current Global Trends:

  • 57 percent of people talk to people more online than they do in real life and 78 percent of people trust consumer opinions posted online.
  • Social networking has exploded globally. Nearly 1 in 5 minutes online is spent on social networking sites.
  • What does it mean for brands: Digital media is increasingly becoming a part of life. Weave social media into everything you do to reach, engage, listen to consumers and invest in ORM.

Auction-Based Buys Will Take-over

  • The top ranking reach networks Google and Facebook operate on bidding. The display investment with Google increased by 92 per cent in the past year.
  • Real-Time-Bidding (RTB), based on audience data will become a ‘must’ for marketers due to their potential to enhance campaign performance.

Digital Media Agencies Will Buy Audiences

As it is an era of an increasingly data-driven market where consumers play a central role,traditional ad space buying model will slowly disappear, in exchange for an audience-centric model with greater efficiency to eliminate campaign waste.
This is the most outstanding trend that every marketer, publisher, agency, data mining company and technology enabler will have to watch out for.

Real Time Planning Will Take Over

Pre-campaign planning will be replaced by planning during the campaign. Instead of inventory, marketers will choose for an audience based on valuable intelligence that satisfies an advertiser’s requirement in real time.

Websites Will Be Critical

  • Branding is going to play an enormous role in the future of website marketing because consumers are seeking information when they want and not necessarily when you are pushing content.
  • Web marketers who take a strong branding and business building approach to the online platform (brands like Nike, the Mini, Adidas, Uniqlo, etc.) will flourish as opposed to those who do one off tactical initiatives on their websites.

Connectivity Will Be Independent of Devices

By 2016, it will all be about connection and what your device can do to achieve that. Media communications will be simplified owing to everything being well connected. Increased compatibility will facilitate communication across multiple platforms through which, the advertising industry will benefit tremendously.

Technology Will Drive Marketing Online

Will we be using a search engine like Google in 5 years? Will we be using desktop computers in 5 years? What will future social networks look like?
The acceleration of innovation in online technologies and the ways we can discover, consume and engage with information can be a challenge to keep up with.

Technology Will Drive Creative (& vice-versa)

  • Driven by consumer expectations who need stimulus beyond the ordinary, first movers, stand alone innovations – that deliver a WOW experience to the consumer will stand out
  • Marketers will need to look for communication opportunities that have the right mix of relevancy & surprise – To have long term ‘Top of Mind’ impact in the increasingly competitive space.

App-based Behaviour Will Drive Mobile Ads

  • With mobile internet usage and mobile search already ahead of desktop, behavioral and geo-targeting, apps will completely change the way ads are sold and consumed on mobile.
  • In the Indian context, apps can drive rural marketing where other modes of reach are limiting.

Location Based Services on the Go Advertising

  • If used right, LBS can be a boon and offer an important basic capability that enables all sorts of innovation in mobile device tools and marketing.

Branded Apps Will Be a Norm

  • Letting someone download a branded tool to enhance their experience of your brand, offers great potential for engagement, lead generation and even direct sales.
  • The App revolution is fueled by a new level of utility in content for mobile devices. The popular tagline “there’s an app for that” is based on this utility. When you can find an app to enhance just about anything you are doing, the net effect becomes transformative.

M-comm will take Over E-comm

  • Easily click a button on a device to trigger a micropayment from your own account without having to re-enter or re-confirm credit card details. M-coupons and offers will further fuel marketing efforts.
  • As the recent text-to-donate campaign for Haiti from the Red Cross showed the world, trying these payments to user’s phone bills may offer another solution.

Digital Will Go Beyond Desktops & Hand-held

  • Digital will link to outdoor, ambient and unexplored realms; all with traditional digital linkages to the Internet
  • National Geographic’s Augmented Reality (AR) Experience in malls, Lynx Falling Angels outdoor AR experience, will be unforgettable for a long time to come and looked up on the web- way beyond the time when these events actually happened.
  • For Marketers it means – Integrating digital in all your plans and capitalizing on activation opportunities where digital can add a revolutionary layer plus long term shelf life.

Consumer-centric Approach v/s Brand Approach

  • Consumer data in terms of their likes and preferences is more accurately available. These can be harnessed to deliver a communication that is relevant and meets intangible consumer needs thereby strengthening relationships. Brands need to be more humane and grounded in order to strike a chord with the audience.

Brands with Pull Strategy Are the Dark Horses of This Race over push strategy.

@bcwebwise

We build a digital architecture that is rooted in research, strategy, branding and content. Layering it with the right brand building assets and maximizing deliverables with the right reach vehicles and technology in the digital spectrum is the key. Through this approach, we strive to achieve the extraordinary and build businesses.

Facebook’s New ‘Promote Your Status Update’ Feature!

We read about it, but then today we stumbled on it on our brand page. The Facebook’s ‘Promote’ feature that has been introduced to your status updates. For as less as USD 5 you can have your status update reach out to as many as 2500 Facebook users! The feature is similar to Promote a Tweet, only here seems to work quick and fast with the click and buy views model built in to the status update bar.

Facebook's Promote Feature

Facebooks Promote Feature

The feature is sure to bring in newer types of advertisers into Facebook folds, individuals, smaller companies and even large brands with big campaigns who want to quickly reach out with an update to a larger audience rather than get into a complete campaign management program with sponsored stories, premium ads or buying Facebook fans/likes.

Our thumbs to this new feature from Facebook that allows specific messaging (your latest wall posts or status updates) to reach out to a larger audience than an average status update would, and also for the user friendly and simple mechanics. Would be good to see Facebook add features such as targeting to the Promote tool.