27 Questions
What is the formula to determine the revenue per lead?
$\frac{Sale hinspace value}{Leads hinspace required}$
How is the ROI calculated when a sale is worth $150 and it takes 15 leads to generate one sale?
$\frac{150}{15}$
What are micro conversions in the context of measuring campaign success?
Actions that contribute to the purchase decision-making process
How can non-conversion activities like social media or display be measured for their impact on leads and sales?
By looking at how much engagement is required to deliver a sale or lead
What should be examined to determine the impact of non-conversion channels on sales?
$Brand hinspace PPC hinspace searches$
How can video views impact brand awareness?
$Video hinspace views$ can deliver higher awareness and positive conversations about your brand.
How can customer awareness of a brand rise during or following a social media campaign?
Positive conversations about the brand resulting from the campaign
What should be observed to assess if non-conversion channels impact sales?
Changes in $Brand hinspace PPC hinspace searches$ or $PPC/SEO hinspace conversion hinspace rates$ in Google Analytics.
What is an example of a valuable outcome of video views?
Higher awareness, positive conversations about your brand, and higher brand search volumes.
What is the largest budget consideration of any digital marketing plan?
Media costs
What factor should determine the allocation of more budget into PPC in a digital marketing plan?
Sales as the goal
What should a meticulously planned budget provide?
Necessary detail to justify expenses
What can be included as part of the overall budget in digital marketing?
Staff costs, training, and processes
What should be prioritized towards channels that deliver on your goals in a digital marketing plan?
$1$
What should you use for budgeting and forecasting in a digital marketing plan?
Historical performance or estimates from the channels or media platform
What is essential for implementing a budget in digital marketing?
A plan of how you're going to implement the budget
What is the second largest expense in digital marketing budget allocation?
Creative production
Which factor may influence budget planning in digital marketing?
All of the above
What may be a better model for driving performance than charging a percentage of media spend?
Hourly fees for third-party agencies
What should be carefully evaluated before budget allocation in relation to digital tools?
Associated fees
What is crucial in focusing marketing efforts effectively with a small budget?
Understanding the size of the target audience and the budget available
What is the formula to measure ROI?
ROI = (revenue - marketing spend) \times 100 / marketing spend
How can traffic cost be estimated for digital marketing?
By using historical CPCs or CPMs
What is a common challenge for late-adopting businesses in digital marketing?
Under-investing in digital
How can ROI planning help in digital marketing?
It helps in understanding the return generated from digital activities
What does the formula ROI = (revenue - marketing spend) x 100 / marketing spend represent?
$ROI$ calculation based on revenue and marketing spend
What is the purpose of developing a budgeting plan for digital investment?
To allocate resources efficiently to channels
Study Notes
Digital Marketing Budgeting and ROI Planning
- Allocate budget to channels efficiently delivering on digital marketing objectives
- Forecast channel performance using historical data as a benchmark
- Estimate traffic needed at historical conversion rates for a certain number of sales or leads
- Estimate cost of traffic by using historical CPCs or CPMs
- Evaluate realistically available budget for digital investment
- Common challenge of under-investing in digital for late-adopting businesses
- Anticipate ad spend allocation for media channels used in the marketing mix
- Prioritize budget allocation to avoid under-investment and under-performance
- Develop a budgeting plan to secure long-term digital investment
- Understand the role of ROI as the cost of digital activities versus the return they generate
- Measure ROI using the formula: ROI = (revenue - marketing spend) x 100 / marketing spend
- Determine ROI through sales and leads generated by digital activities, and their associated revenue values
Learn about forecasting channel performance and estimating traffic and costs for digital marketing campaigns based on historical conversion rates, CPCs, and CPMs.
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