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How to Choose Media Channels to Drive the Best ROI

Data maturity Data maturity, Media, Media Analytics, Media Strategy & Planning 3 min read
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Media.Monks

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When planning a media campaign, it is important to choose a mix of channels that will provide the greatest return on investment (ROI). The more sales driven by each unit spent on a channel, the more successful that channel has been at driving ROI. Marketing mix modeling tells us that channels vary in their average ROI, with some media giving you more bang for your buck than others. Where TV used to be the media channel that was most likely to pay back a company’s investments, marketers now primarily turn to social media. According to HubSpot’s State of Inbound Marketing Trends Report 2022, Facebook is still the leading social media channel in terms of engagement—and thus a go-to platform for marketers.

It’s not only important to know which media channels perform best, but also why they do better than others. To help your marketing team figure out what works best for your brand, our media experts have outlined four main factors that help explain the ROI of a particular media channel. 

Engagement. Due to the medium used, some channels are naturally more engaging than others. The more engaging an advert, the more memorable and more likely it is that consumers will react to it. Comparing TV adverts to print, the former makes use of visual and sound effects that allows for more engaging content, whereas the latter is more limited by its medium. When it comes to social media, popular platforms such as TikTok have shown the widespread impact of video content in any form. “From the addition of Reels into Facebook, to the rise of YouTube Shorts and TikTok overtaking Google as the most popular domain, the great shift to short-form video is in full swing,” according to HubSpot

Targetability. This factor refers to how well marketers are able to reach their target audience using their selected channels. Online channels tend to have greater targetability than offline due to their ability to choose to show adverts to very specific demographics. Online channels also allow for retargeting customers who have already seen an advert from the same company, which is very useful when it comes to selling a large amount of items like flight tickets. Greater targetability boosts ROI because less spend is wasted on people who see the advert, but aren’t likely to purchase the advertised product. That said, the requirement of targetability depends on what a brand is selling, as some products appeal to broad demographics and thus do not necessitate targeted advertising.

Adstock. The adstock effect—which is also known as the ‘memory’ effect of media—differs between media channels. TV, for example, tends to have a higher adstock because the adverts are often more memorable compared to channels like online display, where the adverts are typically simpler, subtler and therefore less engaging.

Reach. Last but certainly not least, the number of views and impressions that an advert can generate depends on what media channel is used. By working with channels that have large and widespread audiences, you increase the chances that your advert reaches many people. Some channels are more limited and simply have less consumers using them, which can lead to diminishing returns because your ads keep reaching the same, smaller audience.

In all, these pillars help explain the differences in sales uplift per dollar spent when comparing the impact of your ads across different media channels. This knowledge is especially useful when it comes to making a decision about your brand’s optimal media channel mix. However, that said, it is important to note that a channel’s ROI shouldn’t be its only measure of success. Some channels serve a particular purpose such as driving brand awareness, and thus might still deserve a place in your brand’s optimal media mix, despite their potentially lower returns. In short, ROI isn’t the main metric that brands should be chasing—rather, from a business point-of-view, it’s best to consider this in maximizing net profit. Learn more about how we can help now.

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The website has been translated to English with the help of Humans and AI

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