Online advertising provides the best return on investment (ROI) for every rand you spend, easily outperforming other forms of advertising.
The ROI companies receive for their advertising spend has become critical in 2020, with the COVID-19 pandemic and subsequent economic downturn forcing marketing managers and business owners to thoroughly examine where they allocate funds.
Only high-performing marketing campaigns can be retained, and as businesses look to recover into 2021 these digital campaigns will be a cornerstone of their success.
Nielsen’s Media ROI Benchmarks report for South Africa provides a comprehensive overview of how much companies receive in return for their advertising spend across various channels.
Online advertising leads the way, with an ROI of R2.30 for every R1.00 spent.
Cinema and Print come in second and third, at R1.60 and R1.35 respectively – while TV, Billboard/Outdoor, and Radio occupy the bottom three positions at R1.30, R1.25, and R0.85 respectively.
The graphic below from the Nielsen report details the South African ROI rankings across advertising channels.
Reach the right audience
Once you have established that online advertising provides the best return for your business, the next step in the journey is to identify which online platforms and which audiences to target.
Google advises businesses to put themselves “in the mind of the potential customers” when formulating how to reach their target audience.
“Advertising online can take the guesswork out of marketing by helping you place ads in front of people who have a good chance of responding to them,” said Google.
“You’ll want to target ads to appear when they’re relevant to the people seeing them. And don’t forget to monitor your results and optimise accordingly.”
To find out more about online advertising on BusinessTech, please contact Kevin Lancaster on [email protected]