For this blog post (and its been a while since I wrote one – sorry Diana!) I thought I’d share some thoughts I’ve been having recently on how we measure return on investment (ROI) of online marketing spends and campaigns.
The music business is a funny old world. This I know for sure having been involved in it for a while now. In my opinion, sometimes it doesn’t seem logical how the business spends money or markets music. I get both frustrated and excited by this industry on a daily basis….but never weary!
I joined this business during a time of change which has been a great thing for me as I have looked on and seen how record labels have poured millions of dollars on initiatives without having a way to measure how effective they really are. I have seen labels spend fortunes on billboards and print ads without being able to, with any degree of real accuracy, measure its true effectiveness or return on investment.
Then I look at the online world, particularly online advertising, and see how it allows for laser precision accuracy in tracking and analyzing data. It’s exciting to see music marketing evolving in this world and beginning to grasp its true potential.
Now, don’t get me wrong, I get it that sometimes ROI is pointless to try and assess too deeply. You can often get too bogged down by metrics. Especially in this world of music and art, it’s not always good to get too scientific. Sometimes you just do something because you know it works. Indeed, I was only recently teased for using too many acronyms like ROI’s and KPI’s. It’s all about creativity right? Well, yes it is but I would argue there is room for a little science in there too, especially when it comes to marketing the creative products we make.
In the world of the social web and online marketing, where data and tracking is so easy, ROI is something that should be simple to see and analyze, yet I rarely see ROI measured in the best possible way and sometimes still not at all.
How do YOU measure return on investment of an online marketing spend? Likes on Facebook? Emails collected? Video views? Album sales?
I guess it depends on goals of the project; there are many ways to look at ROI and all the above have their merits. However, I want to suggest that none of the ways above show the true potential ROI of a modern online marketing spend. I think, in certain scenarios, we should be looking a little further to get a more informed picture of ROI. This is what I want to explore with you a bit more now.
So…… I am going to go off on a slight tangent now but please bear with me as I do have a point to this…….