Looking for ROI & Happiness: Building a Sustainable Internet Marketing Strategy

LOOK ING FOR ROI & HAPPINESS

B U I L D I N G A S U S T A I N A B L E I N T E R N E T M A R K E T I N G S T R A T E G Y

THIS PRESENTATION HAS BEEN DESIGNED FOR BRILLIANT LAB’S TECH GURU PROGRAM, SPONSORED BY KUWAIT’S MINISTRY OF YOUTH

P R E S E N T E D B Y : M O H A M M E D A L M O D H A Y A N

ABOUT TMD

PAR

TN

ER

SC

LIE

NTS

http://tmd.com.sa/blog/tmd/2013/02/tmd-partners-with-mohtawa-content-marketing/

http://tmd.com.sa/blog/tmd/2013/02/tmd-partners-with-mohtawa-content-marketing/

CALCULATING ROI

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 (𝑅𝑂𝐼) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑓𝑟𝑜𝑚 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡− 1

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 (𝑅𝑂𝐼) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑓𝑟𝑜𝑚𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔

𝐶𝑜𝑠𝑡 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔− 1

RULEThe Higher Your ROI, the Happier You Should Be

RULEIf your ROI without marketing is GREATER than your ROI with

marketing, then YOUR MARKETING SUCKS!

FACTYou can take control over ROI!

From the above, we drive the following

Generally,

Revenues without Advertising/Marketing = KWD ___________ (enter your business’s estimate or KWD 2,500)

Revenues when Advertising/Marketing = KWD ___________ (enter your business’s estimate or KWD 4,000)

Costs of Goods/Service Sold (excl. Costs of Advertising/Marketing) = KWD ___________ (same or KWD 1,000)

Costs of Advertising/Marketing (Media & Production) = KWD ___________ (same or KWD 1,000)

𝑅𝑂𝐼 𝑤𝑖𝑡ℎ 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 = ______________%

𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔/𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔

𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑− 1

𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) = − 1

𝑅𝑂𝐼 𝑤𝑖𝑡ℎ𝑜𝑢𝑡 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 = _______________%

𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) =𝑅𝑒𝑣𝑒𝑛𝑢𝑒𝑠 𝑤ℎ𝑒𝑛 𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔

𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑 + 𝐶𝑜𝑠𝑡𝑠 𝑜𝑓 𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔− 1

𝑅𝑂𝐼 (𝑤𝑖𝑡ℎ 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔) = − 1

EXERCISE A / LET’S CALCULATE ROI

A HAPPY STORY

“We Have What You Need, and it costs $5”

Said the Ad

I NEED…

OK, TAKE WHAT YOU

NEED

TAKE MY $5

Awarenessof Need

Research

Decision

Guys!I got what I need

for $5 Only!

Loyalty andRecommendation

THE HAPPY STORIES FUNNEL

Recommend & Repurchase

DecisionResearchIdentify Needs

MAXIMIZING ROI & HAPPY STORIES ON THE INTERNET

ShareHard Conversion

Soft Conversions

WebsiteVisitors

Search

Direct Traffic

Advertising

Social Media

Referral

𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑽𝒂𝒍𝒖𝒆 =𝑹𝒆𝒗𝒆𝒏𝒖𝒆𝒔 𝒇𝒓𝒐𝒎 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏𝒔

𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏𝒔

𝑹𝒆𝒄𝒄𝒐𝒎𝒆𝒏𝒅𝒂𝒕𝒊𝒐𝒏 𝑽𝒂𝒍𝒖𝒆= 𝑪𝒐𝒔𝒕 𝒐𝒇 𝑪𝒍𝒊𝒄𝒌 𝑿

𝑺𝒉𝒂𝒓𝒆𝒔 𝑿𝑪𝑻𝑹 𝑿

𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑹𝒂𝒕𝒆

𝑪𝒐𝒔𝒕 𝒑𝒆𝒓 𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 =𝑪𝒐𝒔𝒕 𝒐𝒇 𝑪𝒍𝒊𝒄𝒌𝒔

𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏

𝑪𝒐𝒔𝒕 𝒑𝒆𝒓 𝑪𝒍𝒊𝒄𝒌 (𝑪𝑷𝑪) =𝑪𝒐𝒔𝒕 𝒐𝒇 𝑪𝒍𝒊𝒄𝒌𝒔

𝑪𝒍𝒊𝒄𝒌𝒔

Aware of Need

𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏 𝑹𝒂𝒕𝒆 =𝑪𝒐𝒏𝒗𝒆𝒓𝒔𝒊𝒐𝒏𝒔

𝑾𝒆𝒃𝒔𝒊𝒕𝒆 𝑽𝒊𝒔𝒊𝒕𝒔

𝑪𝒍𝒊𝒄𝒌 𝑻𝒉𝒓𝒐𝒖𝒈𝒉 𝑹𝒂𝒕𝒆 (𝑪𝑻𝑹) =𝑪𝒍𝒊𝒄𝒌𝒔

𝑰𝒎𝒑𝒓𝒆𝒔𝒔𝒊𝒐𝒏𝒔

EXERCISE B / SPOT THE CONVERSION OPPORTUNITIES 1

1. Draw circles around soft conversion opportunities2. Draw a circle around 1 or 2 hard conversion opportunities





EXERCISE C / LET’S OPTIMIZE ROI

KWD 1,500 KWD 2,000 KWD 0

KWD 200 KWD 400 KWD 100

100 500 20

KWD 1,750 KWD 4,500 KWD 150

KWD ______ KWD ______ KWD ______

______ % ______ % ______ %

Costs of Paid Impressions

Conversions

Revenues

Revenue per Conversion

ROI

Facebook Google Twitter

Costs of Content

Cost per Conversion KWD ______ KWD ______ KWD ______

1. Calculate Cost per conversion2. Calculate Revenue per conversion3. Calculate ROI (note: ROI= Cost / Revenue -1 * 100%)4. Draw a circle around ROI Optimization opportunity

EXERCISE C / LET’S OPTIMIZE ROI (POST OPTIMIZATION)

Costs of Paid Impressions

Conversions

Revenues

Revenue per Conversion

ROI

KWD 0 KWD 3,500 KWD 0

Facebook Google Twitter

Costs of Content KWD 200 KWD 400 KWD 100

20 875 20

KWD 175 KWD 7,875 KWD 150

KWD 17.50 KWD 9.00 KWD 7.50

75 % 102 % 50 %

Cost per Conversion KWD 10.00 KWD 4.80 KWD 5.00

TOTAL ROI = 95% (USED TO BE 52%)

REMEMBER!

TRACKING ROI? PROFITABILTY? RISK

NO NEGATIVE HIGH

NO POSITIVE HIGH

NO VERY POSITIVE HIGH

YES NEGATIVE MEDIUM

YES POSITIVE LOW

YES VERY POSITIVE VERY LOW

RULE: Always keep an eye over ROI

RULE: Your marketing sucks when ROI without marketing is greater than your ROI with marketing

RULE: Take control over ROI!

ASK ME YOUR QUESTIONS ON LINKEDIN & GOOGLE

sa.linkedin.com/in/modhayan/

+MohammedAlModhayan

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