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Online key to higher ROI

A varied media mix, combined with an increase in online ad spend, is a formula that is destined to lead to improved ROI for telecoms marketers, according to new research from Microsoft Advertising.

The role of digital in telecoms marketing explores the effect of the media mix on successful telecommunications campaigns. For the study Microsoft compared the performance of online to TV, print, outdoor and radio elements in a campaign. Overwhelmingly it was found that when online ad spend is increased the overall success of the campaign improves.

“Online makes the other media work harder,” explains Greg Forbes, research manager, Microsoft Advertising. “Online is yet to reach its full potential (in terms of share of ad spend), but its benefits to the overall media mix is clear.”

Across all other media in the study, when spend has increased ROI has fallen. Online was the only medium that delivered higher returns at increasing levels of spend.

While online may not always play the role of the dominant media in a campaign its effects on the retention of a campaign is significant. When online takes a large share of a campaign’s spend retention is increased in every instance, for every media.

When examining the top performing campaigns against bottom performing campaigns the main difference between the two was that the more successful campaign had a balanced split between all media and an increased investment in online.

While the research does not tell advertisers “the magic formula” for a successful campaign, it does explain the interaction of different mediums and why campaigns may or may not be successful.

“This is not about saying put all of your spend online. It is about achieving a balance, and not overlooking the importance of online in the media mix.”

By all accounts it is agreed that online ad spend levels are yet to peak, and its influence on other media can possibly be attributed to its infancy compared to more established mediums. Allocating a greater share of the ad spend pie to online activity will not necessarily work for all campaigns and reaching all target groups.

Information for the study was taken from the campaign activity of the top 10 telecommunication companies across Europe over two years, a sector already open to and benefiting from online investment.

The role of digital in telecoms marketing is the second stage of a three part study, the first arm looked at the retail sector and the final, which will be released in the coming months, will explore FMCGs.

Martina Lacey, London