In the last few years, lawsuits have emerged citing that several online platforms are making huge errors in the placement of advertisements. Facebook, in particular, was accused of fraud by advertisers in a class action lawsuit. These advertisers claim the social media giant knowingly inflated the amount of time users viewed videos by as much as 900 percent for more than a year, causing businesses to spend more on ads than they otherwise would have.
Conversely, Yelp has won several lawsuits charging that Yelp should be held responsible for online reviews users post about companies. This is important because today online reviews can be the source of your BEST marketing, or worst marketing if reviews are consistently bad.
So, does Digital Marketing generate revenue? The answer, according to Nielsen, is that the promise of digital marketing has yet to be fully realized.
Over the last 18 months, some of the largest and most influential advertisers in the world raised concerns about digital advertising, calling the industry “broken” and pointing to high incidence of fraud and lack of brand safety.
Promote On Purpose CEO, Terri Maxwell, believes the reason for the gap between promise and reality is clear, “People buy for the same reason they always did, they just buy a different way. Rather than responding to advertisements the way we did 20 years ago; prospective customers prefer to use digital tools to do research. So, brands who use advertising in an effort to sell products, turn off the buyers they want to win over.”
The Nielsen Report also states that across all business verticals (automotive, consumer packaged goods, financial services, retail, and technology) marketers are shifting how they evaluate, measure and budget across media channels.
Maxwell, whose career blossomed 20 years ago as a sales and marketing executive, says that the true extent of a digital strategy’s effectiveness can be measured by ONE metric: the strategy’s impact on revenue generation.
Maxwell notes, “Profitable growth is the only measure that matters when evaluating a marketing strategy’s impact. Everything else is a leading indicator and doesn’t prove it’s effective in generating an ROI.”
Maxwell developed an ROI methodology in 2007, called I-Score. The premise behind I-Score was to measure the impact of marketing channels against other forms of growth.
“What we found with I-Score is that there were other forms of growth that were more effective than many marketing channels, from a purely ROI standpoint” Maxwell said.
Maxwell evolved the I-Score methodology into the ROI Algorithm that Promote On Purpose uses in its revolutionary ROI Guarantee.
She noted, “We expanded our research into Marketing ROI after the recession, and by 2015 cracked the code on how to use digital strategies to get a revenue-based ROI. We’ve been fine-tuning this ever since.”
The Nielsen Report supports many of Maxwell’s insights. Respondents made it clear that digital marketing impacted business growth, however, results-based measurement was the key to realizing the potential of digital marketing strategies.
Over the last 10 years, digital ad spending has eclipsed traditional channels and Nielsen expects that trend to continue. As high as 82% of respondents expected to increase their digital media spend as a percentage of their total advertising budget. By comparison, only 30% of respondents planned to invest more in traditional media channels.
Maxwell believes that digital marketing that can generate brand awareness AND lead generation is the most effective for revenue generation. She lists 5 key digital strategies as her go-to mechanisms for revenue-generation.