Indirect ROI for the short term
Posted: Tue Jan 07, 2025 5:10 am
That is why we look at reach for these brands in particular; how many earned impressions do our Facebook activities yield and what would be the commercial media value of that (where we look closely at the 'earned' media value vs. the 'bought' media value). The chance that these impressions yield a positive ROI is not yet great, but with the growth of the fan base and good engagement, this ROI can sometimes yield surprising results.
Another way to gain insight into direct ROI is the use of Facebook Offers and perhaps in the long term also Facebook Gifts (provided that this is also opened up to third party e-commerce parties). When an Offer or Gift leads to redemption, this can be directly attributed to Facebook. The direct short-term ROI is often easy to measure by a social media jordan phone data marketer and therefore important to include as standard in the periodic management reports.
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In addition to the directly measurable ROI, it is useful to gain insight into the non-directly measurable short-term ROI. According to research by Social Embassy, interaction with a brand contributes to brand commitment and thus to increased usage intensity, brand preference and brand promotion (word-of-mouth). The more intensive the engagement, the greater the effect. In this case too, it is important to work on engagement between brand and fan. In this way, your dialogue on Facebook contributes to the direct short-term ROI (earned reach) and to indirect short-term ROI (including brand preference).
A frequently heard critical note here is that a fan on Facebook by definition has a stronger relationship with a brand than a non-fan and may even already be a customer. This suggests that the incremental effects of Facebook with regard to these KPIs are limited. Whether or not this suggestion is correct cannot be determined for every advertiser. But with the Facebook Custom Audiences recently introduced by Facebook , e-commerce parties can at least see whether customers among their Facebook fans buy more and/or more often than the non-Facebook fans among their customer base. An effect that can be added to the direct ROI quadrant.
Another way to gain insight into direct ROI is the use of Facebook Offers and perhaps in the long term also Facebook Gifts (provided that this is also opened up to third party e-commerce parties). When an Offer or Gift leads to redemption, this can be directly attributed to Facebook. The direct short-term ROI is often easy to measure by a social media jordan phone data marketer and therefore important to include as standard in the periodic management reports.
matrix2
In addition to the directly measurable ROI, it is useful to gain insight into the non-directly measurable short-term ROI. According to research by Social Embassy, interaction with a brand contributes to brand commitment and thus to increased usage intensity, brand preference and brand promotion (word-of-mouth). The more intensive the engagement, the greater the effect. In this case too, it is important to work on engagement between brand and fan. In this way, your dialogue on Facebook contributes to the direct short-term ROI (earned reach) and to indirect short-term ROI (including brand preference).
A frequently heard critical note here is that a fan on Facebook by definition has a stronger relationship with a brand than a non-fan and may even already be a customer. This suggests that the incremental effects of Facebook with regard to these KPIs are limited. Whether or not this suggestion is correct cannot be determined for every advertiser. But with the Facebook Custom Audiences recently introduced by Facebook , e-commerce parties can at least see whether customers among their Facebook fans buy more and/or more often than the non-Facebook fans among their customer base. An effect that can be added to the direct ROI quadrant.