Sunday, January 03, 2021

Murky world of #online #advertising ROI.

It is becoming increasingly difficult to demonstrate the ROI of online advertising clearly. Uber just run an experiment by turning off 2/3 of their ad spending ( $100M out of $150M). Uber discovered they’d been defrauded as there was no change in buying behaviour.

That said, companies like P&G, Airbnb, and Uber, which are oft-cited as examples of digital not being worth it, often fail to understand their own brand recognition and organic power. There brands recognition and organic power have been built through prior marketing efforts as key to their current standing.

Sure, TODAY, it doesn’t have the impact they’d like it to have, but the investments PRIOR were key to ensuring their success.

In the end, it is still hard to quantify the real ROI, how much is wasted, how much has any impact.