Strategy 01 - Resources, Budgeting, ROI

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the formula to determine the revenue per lead?

$Sale hinspace value \times Leads hinspace required$

$Sale hinspace value - Leads hinspace required$

$\frac{Sale hinspace value}{Leads hinspace required}$ (correct)

$\frac{Leads hinspace required}{Sale hinspace value}$

How is the ROI calculated when a sale is worth $150 and it takes 15 leads to generate one sale?

$150 - 15$

$\frac{150}{15}$ (correct)

$150 \times 15$

$\frac{15}{150}$

What are micro conversions in the context of measuring campaign success?

Actions that only occur after a sale

Actions that have no impact on the purchase decision-making process

Actions that contribute to the purchase decision-making process (correct)

Actions that directly result in a sale

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 Signup and view all the answers

What should be examined to determine the impact of non-conversion channels on sales?

$Brand hinspace PPC hinspace searches$ Signup and view all the answers

How can video views impact brand awareness?

$Video hinspace views$ can deliver higher awareness and positive conversations about your brand. Signup and view all the answers

How can customer awareness of a brand rise during or following a social media campaign?

Positive conversations about the brand resulting from the campaign Signup and view all the answers

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. Signup and view all the answers

What is an example of a valuable outcome of video views?

Higher awareness, positive conversations about your brand, and higher brand search volumes. Signup and view all the answers

What is the largest budget consideration of any digital marketing plan?

Media costs Signup and view all the answers

What factor should determine the allocation of more budget into PPC in a digital marketing plan?

Sales as the goal Signup and view all the answers

What should a meticulously planned budget provide?

Necessary detail to justify expenses Signup and view all the answers

What can be included as part of the overall budget in digital marketing?

Staff costs, training, and processes Signup and view all the answers

What should be prioritized towards channels that deliver on your goals in a digital marketing plan?

$1$ Signup and view all the answers

What should you use for budgeting and forecasting in a digital marketing plan?

Historical performance or estimates from the channels or media platform Signup and view all the answers

What is essential for implementing a budget in digital marketing?

A plan of how you're going to implement the budget Signup and view all the answers

What is the second largest expense in digital marketing budget allocation?

Creative production Signup and view all the answers

Which factor may influence budget planning in digital marketing?

All of the above Signup and view all the answers

What may be a better model for driving performance than charging a percentage of media spend?

Hourly fees for third-party agencies Signup and view all the answers

What should be carefully evaluated before budget allocation in relation to digital tools?

Associated fees Signup and view all the answers

What is crucial in focusing marketing efforts effectively with a small budget?

Understanding the size of the target audience and the budget available Signup and view all the answers

What is the formula to measure ROI?

ROI = (revenue - marketing spend) \times 100 / marketing spend Signup and view all the answers

How can traffic cost be estimated for digital marketing?

By using historical CPCs or CPMs Signup and view all the answers

What is a common challenge for late-adopting businesses in digital marketing?

Under-investing in digital Signup and view all the answers

How can ROI planning help in digital marketing?

It helps in understanding the return generated from digital activities Signup and view all the answers

What does the formula ROI = (revenue - marketing spend) x 100 / marketing spend represent?

$ROI$ calculation based on revenue and marketing spend Signup and view all the answers

What is the purpose of developing a budgeting plan for digital investment?

To allocate resources efficiently to channels Signup and view all the answers

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

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Learn about forecasting channel performance and estimating traffic and costs for digital marketing campaigns based on historical conversion rates, CPCs, and CPMs.