How Can Brands Boost Advertising ROIby Buana Sari Digital Marketer
According to the Nielsen Company 2022 ROI Report, global advertising return on investment for the latest spend is low. The ROI Report looks at what is impacting ad investment returns today and how brands can secure more tomorrow. The report says that ROI can be low because some brands haven't spent enough on breakthrough advertising channels in 2022. 2023 is the right time for brands to properly detect the underinvestment in digital advertising. When armed with the right advertising tools, brands can achieve maximum ROI.
Underspending on advertising is a major impediment in ROI maximization. Experts have found that fifty percent of advertising investments were inadequate to get maximum ROI. The median underinvestment level was fifty-two percent — a big gap that most brands need to cover. Brands that cover the gap can improve ROI by a median of fifty-one percent by optimizing their marketing mix instead of reducing their ad budgets. Several brands have either overinvested in one advertising tool and underinvested in another. Experts suggest that they should rather focus on finding a one-stop advertising solution.
In the past, the digital advertising industry has showcased resilience and adapted to challenges. This year the trend is likely to continue with pivoting ad budgets towards ROI-rich mobile advertising. There is a growing importance of mobile devices in the global advertising landscape and potential for brands to capitalize on this growth to increase their ROI. Advertising, in 2023, is expected to be driven by mobile with mobile ad spend set to hit USD 362 billion (Source : Data.ai report). It is driven by growth in short-form mobile videos via well-acclaimed mobile advertising platforms including Meta Ads, moLotus, Google Ads, Tik Tok, AdMob, Tube Mogul, Apple Search, and Airpush. 2022 witnessed mobile advertising spending reaching a record of USD 327.1 billion worldwide. This figure is likely to increase to nearly 399.6 billion by 2024 (Source : Statista).
With skyrocketing smartphone penetration and mobile usage, big brands are devoting larger budgets to mobile advertising than ever. They are leveraging the mobile revolution particularly by investing more on real mobile advertising platforms such as moLotus adding to advertising ROI in a big way. Brands like HSBC, Amazon, Suzuki, DBS, Dell, and Samsung across industry verticals like banking, insurance, ecommerce, automobile, consumer electronics, government, etc. have launched unique mobile advertising campaigns using tools like moLotus to achieve more revenues and more ROI.
Brands are using ROI index to compare the profitability of different investments on advertising tools, making informed decisions about where to allocate their budgets. They are also considering other factors such as reach, risks, conversions, market conditions, interactions, personalizations, time horizons, etc. while selecting profitable advertising platforms. Here is a list of ways how brands can boost their advertising ROI.
1. Respond Better & Convert More
For brands, customer response has a deep impact on conversion rate and ROI. Advertisers have concluded that response time makes or breaks revenues. According to a report published by Harvard Business Review, the brands responding within an hour are almost seven times more likely to get conversations, gaining decisive customers. Any late response on the part of the brand may lead to missing the chance to sell to the right customers.
As regards to customer responses, slow advertising platforms do not win the race for returns and conversions. Most brands are using mobile advertising tools like moLotus, Meta Ads, Google Ads, Tube Mogul, AdMob, etc. ensuring shorter customer response times.
Brands are responding to huge numbers of customers, supporting them using moLotus video ads instantly. moLotus mobile video interactions lead to better return on investment. Adding to sales conversions. By far it has been the fastest and most cost-effective way of getting the best ROI for businesses.
2. Capture More Leads
The Lead generation process has been quite cumbersome for brands over the years. Brands focusing on ROI have been in search of superior lead generation tools which could help them in capturing more leads at low cost per lead.
Latest research shows that mobile advertising platforms are surfacing as the best way to generate leads at low cost and obtain better return on the investments. For example, lead generation campaigns offered by advertising platforms like moLotus, Meta, Google Ads offer unique and attention-grabbing ads influencing prospects to share valuable contact details.
If ROI indexes provided by reputed research firms are to be considered, moLotus lead generation campaigns offer maximum optimization options and are completely spam-free. These campaigns assist brands to attract more leads at minimum cost per lead than any other ad platform resulting in increasing ROI.
3. Acquire More Customers at Optimum Cost
Research estimates that the average cost of customer acquisition is eight times the amount spent on retaining existing customers. High cost of customer acquisition has been identified as one of the biggest impediments to enhancing ROI.
Digital advertising has come a long way in lowering the cost of acquisition, pushing ROI for brands. However, all digital advertising tools are not equally likely to reduce the cost of acquiring new customers. For instance, tools like Google Ads, Apple Search Ads, etc. assist brands in getting new customers but at high costs.
A new mobile tech like moLotus is making customer acquisition more and more cost-effective for struggling brands. The customer acquisition campaigns offered by the tool are augmenting the customer base of brands, boosting return on investment. moLotus campaigns are supported by illustrative product videos and offer enticing customers; influence them to interact, and the real-time automated reporting system organizes every response detail and sends it to the brand advertisers in a purposeful way.
4. Emphasize More Brand-Customer Communication
Surveys unveil that brand-customer communication directly and positively impacts brand profitability and return on investment. For brands, easy interactions with personalized communication create a favorable impact on the minds of customers. Therefore, brands should invest more in personalization and building better customer relationships, for building superior marketing ROI for businesses.
This year more brands are pushing hard to hyper-personalize their ad campaigns and tailoring brand messages via moLotus using relevant customer data including names. They are reaching customers using offers, recommendations, and other messages - all hyper-personalized using massive customer data; bringing in more sales and ROI.
Most brands are interacting more using moLotus easy interaction options like SMS, Web Click URL, USSD, Call, and more. Also, unique moLotus multimedia formats including video, greetings, brochure, slideshow, and showcase with interactive elements are improving and inviting profitable brand-customer communication.
5. Focus on Customer Convenience
Customer convenience has a significant impact on advertising ROI by increasing customer satisfaction, and ultimately driving conversions and sales. A survey held in the US points out that close to eighty percent of consumers consider convenience to be one of the most important elements of a better customer experience.
Mobile advertising has been the backbone of customer convenience and a big reason behind the upliftment of many industries like ecommerce that have boomed over the last few years. By offering convenient options such as easy product understanding, easy product ordering, quick delivery, instant feedback, and hassle-free returns, customers are more likely to have a positive experience with the brand.
Brands are using mobile marketing tools like moLotus for offering more convenience to customers. For instance, Millennials and Gen Z customers watch comprehensive moLotus product videos, understand the products as per their convenience and place orders easily via mobile phones almost in a click.
moLotus technology has transformed the purchasing process for customers making it convenient and delightful. Now there is no need for them to communicate with intrusive sales representatives or visit stores. Sales have increased due to easy moLotus mobile purchasing opportunities resulting in high ROI for brands.
6. Automate and Digitize Advertising
Automating and transforming advertising has become the top priorities for brands across the world. Brands are allocating more resources on mobile advertising technologies that will make them eligible for more ROI and return on ad spend (ROAS). Automation technologies are completing organizing customer data, segmenting customer base, sending messages quickly to huge customer databases, and much more without any hassle, incurring less costs, enhancing bottom-line for brands, finally contributing to more ROI.
Advertisers are using automation tools like moLotus, Customer.io, Pardot, Airpush, etc. to scale marketing ROI via end-to-end digital transformation. moLotus allows advertisers to automate the creation of ads, tailoring ad content and messaging in real-time to the individual customers based on their behavior, language, interests, demographics. Brands are automating the entire customer lifecycle - lead generation, new customer onboarding, support, loyalty, and more contributing towards better customer engagement and higher ROI. Using moLotus automation, brands can reach consumers directly in their inbox and keep them involved on their mobile phones at low cost without the need of any mobile application download or expensive data plans.
7. Focus on Customer Loyalty & Retention
Research has reflected that loyal customer relationships translate into ROI escalation with existing customers spending more easily on products than customers newly acquired. As per data presented by Brain & Company, a five percent boost in customer retention can increase business revenue by 25 to 95 percent. Further, new customers would cost six to seven times more than loyal customers. The figures indicate a direct relationship between customer loyalty and ROI. The more loyalty, the more ROI for brands.
2023 is experiencing a major disruption in loyalty-based advertising with mobile technology like moLotus adding to bottom lines and return on investment significantly for brands. For example, moLotus has introduced brands to innovative loyalty and reward campaigns focusing on special occasions like festivals, anniversaries, birthdays and reminders yielding more ROI. These ad campaigns are custom-branded with multiple options for call-to-actions, greetings, names, and rewards for each customer.
8. Track & Optimize Ads
Advertisers need to closely monitor and track their individual campaign performance across customers, regions, demographics, etc. to increase campaign ROI. Using the campaign statistics and data analytics could be handy for reviewing performance attained against the standard performance parameters set. Using the right advertising tools, brands can easily monitor customer interactions and track how customers are engaging with different campaigns.
Mobile advertising tools like moLotus, Adpush, InMobi, etc. assist businesses with powerful advertisement tracking and data analytics. moLotus platform is empowered with real time progressive campaign tracking and data analysis. Brands get comprehensive ad reports and Big data analytics. They can further optimize and enhance advertising performance and secure more revenue for video ads.
Overall, boosting ROI requires a customer-centric approach prioritizing exceptional customer experiences, interaction, personalization, automation, digitization, and more. For brands, maximizing advertising ROI is no longer difficult in 2023 with most of them rapidly adopting appropriate mobile advertising technologies like moLotus. With proper strategizing and by embracing appropriate technologies, brands are expected to yield a good advertising ROI driving business performance.
Created on Mar 15th 2023 05:42. Viewed 74 times.