DIGITAL AND SOCIAL MEDIA

MARKETING
UNIT 4
TOPIC : DIGITAL TRANSFORMATION

Digital Transformation  is the adoption of digital technology to

transform services or businesses, through replacing non-digital or
manual processes with digital processes or replacing older digital
technology with newer digital technology. Digital solutions may
enable - in addition to efficiency via automation - new types
of innovation and creativity, rather than simply enhancing and
supporting traditional methods.
TOPIC : DIGITAL TRANSFORMATION

Digital transformation is the integration of digital technology into

all areas of a business, fundamentally changing how you operate
and deliver value to customers. It's also a cultural change that
requires organizations to continually challenge the status quo,
experiment, and get comfortable with failure. 
For instance, these digital transformation elements are often cited:
• Customer experience
• Operational agility
• Culture and leadership
• Workforce enablement
• Digital technology integration
Continued…

Digital transformation is the process of using digital technologies to

create new — or modify existing — business processes, culture, and
customer experiences to meet changing business and market
requirements. This reimagining of business in the digital age is digital
transformation.
Continued….
• An important element of digital transformation is, of
course, technology. But often, it's more about shedding
outdated processes and legacy technology than it is
about adopting new tech. The federal it dashboard
shows that in fiscal year 2017, over 70 percent of it
spend government-wide went toward operating and
maintaining legacy systems. 
Continued…
MAIN AREAS OF DT

 Business process,
 Business model,
 Domain
 Cultural/organizational
Continued…
Business Model Transformation
• 1- Social Media
• 2- Cloud Computing
• 3- Remote access and mobility.
• 4- Big Data
• 5-Internet of Things
• 6-Artificial Intelligence
Continued…
NEED

 Digital transformation can be defined as the acceleration

of business activities, processes, competencies and models to fully
leverage the changes and opportunities of digital technologies and
their impact in a strategic and prioritized way.
Continued…
DIGITAL TRANSFORMATION STRATEGY

A Digital Transformation Strategy is a plan of action describing how a

business must strategically reposition itself in the digital economy. As
customer habits change so do the way winning businesses operate.
They innovate, change operating and business models and leverage
emerging technology.
Continued…
 For the technology industry perspective, a digital transformation strategy typically
means the use of technology to complete tasks once manual. The challenge with this
concept is that businesses have used technology to improve how they deliver their
products and services since the dawn of commerce.
 From the creative industry perspective, digital transformation strategy is discussed
through the lens of digital marketing and user experience (Ux). The idea that
customers now utilise technology to research, find and select products and services
that match their needs. While this is true, building a website, an app or e-commerce
strategy is hardly transformational.
 From the management consultants perspective, they see digital transformation as an
opportunity to reshape a business. To align the operating model with new business
models. The product and services of a business can, if considered in the right way,
become more digitally infused. This reduces the operating cost and increases profit.
Continued…
Good Digital transformation strategy

1.Diagnosis
2. Guiding Policy
3. Coherent Plan of Action.
EXAMPLE

The importance of organization change is well illustrated by

kodak’s fall from its position of market dominance and its
ultimate demise kodak failed because it was not able to make
the necessary adjustment to adopt to new markets and
changing requirements
Digital transformation across industries.

• Meet customers in the digital channels they already frequent

• Leverage data to better understand your customers and the
marketplace as a whole
• Encourage once-separate groups like marketing, sales, and service to
collaborate
Digital transformation in banking.

Banking has been radically transformed by digital technologies in ways

that have greatly benefited many consumers. Not so long ago, the
majority of transactions were handled in person by bank tellers.
Automated teller machines (ATMs) came along and streamlined the
basic transaction process, extending business hours and reducing wait
times and dependencies on human employees for cash withdrawals
and other popular transactions. 
PayPal and Apple Pay, let consumers pay for everyday purchases with
accounts linked directly to their phones, no cash or plastic card required.
 Digital transformation in retail

Retail has also been radically transformed in the digital era. Digital
transformation has both impacted the in-store retail experience and
ushered in the age of ecommerce.
Aspects of digital transformation
EXAMPLE 1 :Nike Just Did It

One of the world’s top athletic shoes and clothing companies, Nike, felt
they were starting to become sluggish and outdated. Nike’s leadership
didn’t hesitate. It just did a digital transformation of the company’s
mindset, supply chain, and brand and was able to better connect with
its customer base. The company focused on more powerful data
analytics, updated its e-commerce strategy, created stronger digital
marketing campaigns and ramped up its direct to customer sales. More
efficient and effective use of digital consumer data led Nike to open
concept stores, create more membership opportunities and improve
the customer experience online and through apps.
EXAMPLE 2: MICROSOFT
Long known for its innovative Windows, Office Suite and other top
products, Microsoft saw increased competition from Apple, Amazon
and other companies causing its stock prices to lag. The company
decided to re-think its strategy. Its solution was to create a cloud
networking system business that’s more forward-focused beginning in
2014. It moved its focus away from its traditional software to a cloud
system that’s more fluid both for personal as well as enterprise use.
Microsoft also began to work with other technology and software
companies to create lucrative partnerships.
EXAMPLE 3 Deloitte
Deloitte began transforming within: Deloitte (Professional Services)
innovated themselves by founding Deloitte Digital Today, a competence
center where all the technical, digital, and creative competencies come
together to support their client base on their digital transformation
journey. In a panel discussion, Alcon Labs and doTERRA outlined the
importance of Deloitte’s partnership to their organizations, including
Deloitte’s digital and technical knowledge, as well as their ability to
model the actual solution. This partnership has enabled both
organizations to assess their current technology landscape, develop their
digital transformation strategy, and build and integrate the new systems,
side by side.
EXAMPLE 4
Porsche places the customer at the heart of their strategy: Customer
experience drives Porsche’s digital strategy. Porsche has heavily
invested in understanding the Porsche driver. All customer data is pulled
into a central CRM data center and allocated to a unique ID. Throughout
the entire lifecycle, every customer interaction at every touch point is
documented.
Continued…

Digital transformation is by no means easy to achieve

but for many firms ,it is a competitive necessity .Digital
diruption is spreading quickly across industries and
many executives are unsure of the appropiate responses.
DIGITAL LEADERSHIP

• Digital leadership is the strategic use of a company’s digital assets to achieve

business goals .Digital leadership can be addressed at both organizational and
individual needs .

• Organizations that value digital leadership ,often place value on communication

,creativity and a willingness to explore new ways that technology and digital
information can be used to successfully addresss outward facing business
projects ,internal projects etc.
Continued…
Digital leadership is the strategic use of a company’s’ digital assets to
achieve business goals. This can be dealt with both organizationally and at
an individual level. Looking at it from an individual level, this is often
carried out by those responsible for overseeing the digital assets.
An effective digital leader will be aware of the business goals and knows
how their job responsibilities support it. At an organizational level the
digital leader could for example be a company that has successfully taken
advantage of their digital assets to gain and also maintain a competitive
edge. These digital leaders will explore how technology can be used to
help their business become much more responsive to the needs of their
customers and the ever-changing business requirements.
Continued…

A successful digital leader understands the importance of

inbound data and the processes within the business that
supports it. They place high value on their communication,
creativity and willingness to explore the ways that new
emerging technology and digital information can be used to
help business projects.
IMPORTANCE OF DIGITAL
LEADERSHIP
• It builds a digital culture – different departments within a
business will require different digital tools to improve their
work. Having an effective digital leader helps to make this
happen within your organization giving them the right tools
available to them.
• Example: Let’s take Google Drive as an example. Companies can
use Google Drive to create and access specific documents which
contain specific information. Additionally, employees that work
remotely can collaborate and share documents via this platform.
Each edit that is made is saved and people can see who added,
removed or changed any information in real-time.
Continued…
2.Makes employees more productive – the tools provided to your
organization are designed to increase productivity levels, however, without a
digital leadership to drive this, employees could struggle to implement and
get the most out of these tools. Digital leadership ensures that your
workforce can concentrate on using it straight away.
3.Improves customer satisfaction – a satisfied customer will have no reason
to leave your business for a competitor, but a dissatisfied one will have
several reasons. Digital leadership can help this by improving and
introducing convenience, speed and customer support, for example. This in
turn makes a customer increasingly satisfied with your product or service.
4.Increases revenue – it’s simple, serving more customers in less time is an
effective recipe for making more money within your business. There are
many ways that digital leadership can help increase revenue.
DIGITAL LEADERSHIP SKILLS
 Communication
A perfect example is virtual meetings. Considering that
managers have tight schedules and can be out of town, virtual
meetings enable them to attend meetings within their company
virtually. This way they are updated with the lasest changes and
can communicate any information virtually.
 Vision – with a strong and clear vision it’s easier to get your
workforce onboard with you, when they believe what you
believe. This is arguably one of the traits that makes digital
leaders stand out from the rest.
Continued…
2.Digital Literacy – it showed that 90% believe their business is being disrupted or reinvented
by digital business models. But when asked about their capabilities, 70% believe they do not
possess the right skills, leader or operating structure to adapt.One of the problems facing
industries are with older generations having to learn new technologies, better known as
‘digital immigrants’. It’s important for digital leaders to get to grips with technology and the
tools and bring the entire workforce along with them.
3.Strategy – the most successful digital leaders will not only have a very clear vision for the
future, but also a strategy in place that helps nurture a digital culture internally, ready to
embrace changes. In order for this to actually happen, a coherent strategy outlining the
digital agenda is crucial.
4.Innovation – the digital landscape is ever evolving in the digital age and leadership must be
willing to try out new technologies and in order to do so, be flexible and adaptable with their
approach in creating a digital workforce. There are often calculated risks involved, for
example, trying out new systems before any other businesses where you have little evidence
or examples of success, but the rewards could be extremely beneficial. This leads us into the
next point, risk-taking.
 PRINCIPLES OF DIGITAL LEADERSHIP

Understand who you lead; not just the people working in your organisation, but the
customer’s and supply chain.
From mandate to conversation; persuasive powers are increasingly required
Fewer managers and more leaders — software is providing information into peoples hand
through mobiles, and this means that there is less need for managers. If you walk into a
burberry store, you experience the burberry brand, and this has less to do with management
and more to do with brand leadership.
A leader must be digitally present even though he or she also has physical interaction with
employees.
Authenticity or being genuine. Having the communication department write all your
material doesn’t fly any more. Employees demands a true sense of the CEO.
Despite the conversational focus, leaders still have to lead. Whether or not the hierarchy
has become more networked, leadership is still required.
 
EXAMPLE 1 NORDSTORM
• For almost a century, Nordstrom has been known for its elegant,
upscale customer experience. To maintain its position in the
marketplace, in the late 1990s the company embarked on a mission to
invest in digital technologies that served customers and further
empowered their customer-centric employees.
• By developing a digital business model and strategy the company
focused on providing the ultimate customer experience. Following the
creation of their website, they developed a new point-of-sale system
featuring personal book software, so sales could track individual
customer requests and needs. 
EXAMPLE 2 BURBERRY

Like most sectors that rely on the person-to-person experience, the

fashion industry has struggled to accommodate emerging digital
platforms. A fashion leader worldwide, Burberry was an early adopter to
the world of digital down to the hiring of its digitally savvy CEO.
 
TOPIC : ONLINE PR AND REPUTATION MANGEMENT
 

• Online public relations (e-pr, digital pr) functions the web

relationship influence among the cyber citizens and it aims to
make desirable comments about an organization, its products
and services, news viewed by its target audiences and lessen its
undesirable comments to a large degree.
• Online public relations shows differences from traditional
public relations. One of these is associated with its platforms.
Compared with traditional public relations channels (such as tv,
radio and printed press), the network systems used for online
public relations vary from search to social platforms..
DEFINITION
Online Public Relations (E-PR, Digital PR) refers to the use of the internet to
communicate with both potential and current customers in the public realm. It
functions as the web relationship influence among the cyber citizens and it aims to
make desirable comments about an organization, its products and services, news
viewed by its target audiences and lessen its undesirable comments to a large
degree.

Online public relations shows differences from traditional public relations. One of
these is associated with its platforms. Compared with traditional public relations
channels (such as TV, radio and printed press), the network systems used for online
public relations vary from search to social platforms.
.
Continued…
In the era of digital marketing, the major online public relations tools for the public
relations professionals and marketers such as content marketing, search engin
optimization are the results of mixture of digital technologies and public relations.
Those approaches have become the mainstream digital marketing machines and
learning to take advantage of these marketing tools is an essential part of modern
public relations strategies.

Online Public Relations is very similar to traditional Public Relations in the sense
that it’s about influencing the public instead than buying placement for brand
content. The influence could result in a story in a magazine, newspaper review on
google, yelp or blog. It could additionally result in other online pick-up, which
include by way of social media influences
Continued…

• In the era of digital marketing, the major online public relations tools for the
public relations professionals and marketers such as content marketing, search
engine optimisation are the results of mixture of digital technologies and public
relations

• Online is powerful because it is where people go to in order to find the majority of

their information ,and it is also the place where they confirm whether a firm they
are interested in its recognised by others .This peer approval mentality is seen by
interest in sites such as tripadvisor ,where reputation are made or lost by how
others perceive the organizations they have been in contact with .
GOALS
1.Acquisition and retention of new customers
2.Communication of information
3.Increase of attention
4.Creating a high cost-benefit ratio
5.Improving (online-) reputation
6.Measuring and controlling success
7.Achieving a high degree of actuality
PR ESSENTIALS

1. Story telling is the big buzz phrase of the moment .

2. Successful pr is about using your overarching story to the answer ‘so
what ‘.
3. It’s all about knowing the audience
4. It’s all about timeliness
5. It’s all about opinion
6. Create appropiate content
7. Keep the sentences shorter
Continued…

Online is different in a number of key respect . traditional pr is largely

commprises media liason ,with the majority of content coming in the
form of press release and articles.

On the digital side of public reations and articles are still important ,and
we have to think differently about how they are being placed which
means how they are going to appear on website .
 DIFFERENCE

Differences between online and traditional public relations.

• The organizations can communicate with its audiences directly through a
variety of online platforms instead of depending on the media channels only
• Audiences exposed to the information are linked to the network and then the
flow of information is multi-directional among people
• Multiple sources of information provided can be accessible to audiences
• Audiences are entitled to the right to review, comment and assess .
TACTICS
 Buzz marketing
Buzz marketing means marketers first identify the Alpha consumer in terms of a
new idea and technologies and then promote specifically made messages such as
a funny video or email with the help of the network of those Alpha consumers. 
 Display information Online
The internet platforms provide organizations a variety of channels to issue timely
news and information. The forms of information can vary from search to social to
brand management platforms such as email alerts or news stories. These
contents provided by organizations allow media channels to find news sources
easily, which can increase the exposure of organizations and then improve public
relations.
Continued…
 Link building is used to achieve and create hyperlinks to other third-
party website or related site to help netizens to navigate between
websites. Building high-quality links can have an effect on search
result ranking.Then finding partners websites to link and then
increasing more traffic is involved in the daily work of online public
relations professionals
EXAMPLE 1 Alfa Telecommunications
Alfa Telecommunications, Orascom Telecom Media &
Technology’s mobile network brand, have amassed over 89,000
Facebook fans and see an impressive level of engagement on
nearly every piece of company news they share. They are
skilled in maximizing their ROI from industry and company
events by sharing high quality, interesting photos and videos
with Facebook fans.
EXAMPLE 2 PEPSI

Attaching the promotion to the brand’s hashtag #LiveforNow was one

way they were able to reach a wider audience with the Halloween prank.
EXAMPLE 3 JETBLUE

JetBlue and Crying Babies

 REPUTATION MANAGEMENT
• Reputation management (sometimes referred to as rep management,
online reputation management or orm) is the practice of attempting to
shape public perception of a person or organization by influencing online
information about that entity.
• The first step in reputation management is monitoring references to the
person or business, primarily through social media monitoring and
carefully crafted search queries. Social media analytics and similar
processes on search results help to deliver a snapshot of current public
opinion of the person or business in question and then a campaign can be
designed to address any problematic issues that have been revealed.
MEANING OF REPUTATION MANAGEMENT

Reputation management is the practice of

attempting to shape public perception of a person
or organization by influencing online information
about that entity.
Continued…

Online reputation management is the process of

controlling what shows up when someone looks
you up online.
Continued…
• People are looking you up online at every stage of your career &
making decisions about you based on what they find.
• Anyone can say anything about you online without getting in
trouble, whether it’s true or not.
• Everything we do online, from the things we post to social media,
the sites we visit, the things we purchase, and even the
conversations we send via text/messenger, is stored somewhere.
• Building a positive personal brand online gives you an edge, but
most don’t know how to create one
Continued…
• Reputation management refers to the influencing and controlling or
concealing of an individual's or group's reputation. Originally a public
relations term, the growth of the internet and social media, along
with reputation management companies, have made search results a
core part of an individual's or group's reputation.
• Online reputation management, sometimes abbreviated as ORM,
focuses on the management of product and service search website
results. Ethical grey areas include mug shot removal sites, astroturfing
customer review sites, censoring negative complaints, and using
search engine optimization tactics to influence results.
ONLINE REPUTATION
MANAGEMENT STRATEGY
• Step 1: Purchase Your Domain (yourname.com). Purchasing
your domain name is quite possibly the most important step.
• Step 2: Build a Personal Website. Now to have your domain, it's
time to build a personal hub on the web
• Step 3: Get on Social Networks. Search engines tend to rank
social media profiles like Facebook, Twitter, and LinkedIn.
• Step 4: Create ongoing content to establish a personal brand.
EXAMPLE
• FEEDBACK SYSTEM ON EBAY

• FEEDBACK SYSTEM ON WIKIPEDIA

 Continued…
• Here are some of the tactics used by reputation management :
• Improving tha tagging and seach engine optimization of company
published materials ,such as white papers and positive customer
testimonials in order to push down negative content .
• Publishing original ,positive websites and social media profiles ,with
the aim of outperforming negative results in a search.
• Submitting legal take down requests if someone believes they have
been libeled.
• Getting mentions of the business or individual in third party sites that
rank highly in google.
REPUTATION MANAGEMENT PROCESS

• Evaluate the reputation situation

• Develop an action plan with a reasonable expectation
• Create a written proposal detailing the action plan items
• Proposal approved by client we begin work immediately
• 1st meeting –discuss content –press release –project requests
FEATURES OF ONLINE REPUTATION
MANAGEMENT
A SAFE AND SECURE ONLINE ENVIRONMENT
A COLLABORATIVE WORKSPACE FOR INTERNAL AND EXTERNAL PARTNERS.
ONE PLATFORM AND ONE WINDOW .
SEARCH AND MONITORING FUNCTIONS
A COST EFFECTIVE PRICE POINT .
OPEN EXTENSIBLE CONTENT ARCHITECTURE
REAL TIME ALERTS
EXPERT PACKAGING
REPORTING AND ANALYSIS
REASONS FOR ONLINE REPUTATION
MANAGEMENT
• INCREASE SALES
• BUILD TRUST AND CREDIBILITY
• SHOW THE BEST SIDE
• ONLINE INSIGHTS
• RECRUITMENT
VARIOUS TOOLS OF ONLINE REPUTATION
MANAGEMENT
• TRACKUR
It is a social media monitoring tool that offers instant notifications when
brand is mentioned .
• NAYMZ
It is a useful tool for tracking the social influence ,which is closely tied
to online reputation.
• BRANDSEYE
It has a full set of features that make reputation management simple .
Continued…
• ReputationDefender
Continued…
• Sentiment
Continued…
• BrandsEye
BrandsEye gives constant alerts about online conversation that include
the name of organization, brands, campaigns, and representatives. In
case of any emergency, it will be notified through email, SMS, RSS or
even Twitter. It also provides a scorecard which shows you where you
stand among the competitors.
EXAMPLE 1
EXAMPLE 2
Nike support
TOPIC : ROI OF DIGITAL STRATEGIES
 

To understand what the ROI is, we need to understand

what the goals or aims of the company are, what they
wish to get from a digital marketing campaign and then
measure these goals. For this we need to look at the key
performance indicators (kpis) and the goals for each one.
Continued….
• Here are some types of key performance indicators:
• General performance - traffic, leads, reach
• Channel based - website, blog, social networks, search engines
• Source based performance - direct traffic, organic search,
referrals, email, ppc
• Campaign based performance - lead generation, click throughs,
conversions, conversion rates
• Setting realistic and measurable goals
Continued…
1. COST PER LEAD
• If your website is collecting leads for your
sales team to “close,” you need to know how
much you’re paying for each lead.
• If the cost of each lead is more than what you
produce by closing leads, that is indicative of
a backward return on investment.
Continued…
2. LEAD CLOSE RATE
• How do we track our lead closes? If we’re doing this
offline, which means that data isn’t being integrated
into analytics or the online data we are gathering.
• That’s fine, but we need to make sure we keep an eye
on our lead close rate so we can check that against the
leads being generated. This will help to ensure that
digital marketing efforts are delivering leads profitably
Continued…
3. COST PER ACQUISITION
• USING THE DATA, WE SHOULD NOW BE ABLE TO
FIGURE OUT OUR COST PER ACQUISITION.
• THIS CAN BE FIGURED SIMPLY BY DIVIDING OUR
MARKETING COSTS BY THE NUMBER OF SALES
GENERATED.
• WE NOW KNOW WHAT IT COSTS TO GET A SALE,
WHICH WILL HELP TO GET A FIRMER GRASP ON ROI.
Continued…
4. AVERAGE ORDER VALUE
• WHILE WE WANT TO SEE THE NUMBER OF ORDERS
INCREASE, PAYING ATTENTION TO THE VALUE OF THE
AVERAGE TICKET CAN REAP SIGNIFICANT REWARDS.
• A SMALL INCREASE IN AVERAGE ORDER VALUE CAN
BRING IN THOUSANDS OF DOLLARS OF NEW REVENUE,
AND CAN OFTEN BE AS SIMPLE AS IMPROVING USER
EXPERIENCE AND PROVIDING UPSELL OPPORTUNITIES.
Continued…

5. CONVERSION RATES BY CHANNEL

We like to know where our traffic is coming from.
Whether it’s organic, paid, social media, or other
avenues, this information tells us where the bulk of our
customers are and/or where the marketing efforts are
producing the most buzz
Continued…
6. Landing Page Performance
There are a lot of things to measure when it comes to the
performance of our landing pages: Bounce rates, CTR,
conversions rates, conversion assists, etc.
Look for any landing pages that aren’t helping drive
conversions need to be fixed or eliminated, or the marketing
driving the traffic needs to change.
WAYS TO IMPROVE DIGITAL
MARKETING ROI
1.CLEARLY IDENTIFY GOALS EARLY ON
We need to know what are the goals of the campaign before
we can begin to measure digital marketing roi.If goals are
unclear then there is a good chance that we might not be using
the right metrics to track roi.
 Continued….

2.USE KPI’S THAT ARE DIRECTLY RELATED TO

GOALS
Once we have clearly defined goals and objectives in place
,we need to make sure that we are choosing kpi’s that align
with these goals .Key performance indicators are the key
metrics ,that we measure the progress towards these goals .
TOPIC : HOW DIGITAL MARKETING IS ADDING VALUE TO
BUSINESS AND EVALUATING COST EFFECTIVENESS OF
DIGITAL STRATEGIES

• If we are carrying out any business in the current era,

we must and should use digital marketing techniques
without overlooking at them. Digital marketing
definitely adds value to our business in a huge number
of ways.
•  People belonging to specific groups have realized the
importance of digital marketing while some are still
ignorant.
Continued…

• Social media channels like facebook, twitter, instagram, etc.,

Even play a crucial role indirectly for enhancing business.One
must have adequate knowledge about the latest trends in
technology and design the management strategies accordingly.
All these elements have been covered in this article to make you
concede about the esteem of digital marketing.
 VALUE ADDED TO BUSINESS
• Adds Value to your Business
• Unfolds Expansion Opportunities for small-scale industries
• Higher Conversion Rate
• Enhanced Customer Support
• Easy to Interact with the Consumers
• Raise your Brand’s Trust
• Great Return on Investments
• Digital marketing is Profitable
• Ability to Gain More Revenue
 TOPIC :HOW TO MEASURE THE COST-EFFECTIVENESS OF
DIGITAL MARKETING INITIATIVES.

• MEASURING AGAINST GOALS

The first step to understanding the cost effectiveness ratio of digital marketing
efforts is to understand what the goals of marketing are. If spending money on a
social media campaign, we can’t perform a cost-effectiveness analysis on the
results if we don’t know what you were trying to achieve.
If we established our goal was clicks and we paid less than average per click, we
might say that was a successful, cost effective campaign measure.
If you’re paying a blogger to share a product testimonial and we only get 6 new
followers from their efforts – that might seem like an expensive campaign metric
if our goal was more followers, but it might be a more valuable investment – new
fans – than simply generating clicks which are a lower form of engagement.
Measuring cost-effectiveness will always depend on our goals and our results.
Continued…
• Companies use the cost benefit method to help make financial decisions,
particularly those that involve the purchase of new equipment. The cost benefit
method involves placing factors in two columns on paper. In the first column,
the company lists all of the financial benefits the new equipment or
software will provide.
• Such benefits might include improved productivity, lower supply costs and
increased business. In the second column, the company lists the concrete and
peripheral costs of the new equipment or software. This includes the basic cost
of the equipment, any business lost during the transition to the new equipment,
training costs, the cost of changing suppliers, and the like. Administrators,
managers or executives look for options whereby the financial benefits
outweigh the costs.
 Continued…
• UNDERSTANDING NOT ALL COST IS MONETARY

While most people performing a cost-effectiveness analysis of their digital

marketing efforts might simply try to understand campaign bottom-line
dollars spent per impression, other businesses understand that the time it takes
to brainstorm campaign concepts, create content, design digital advertising all
have an inherent “cost” in the form of time or salary. The cost of marketing is
beyond the money paid to a publisher to promote a piece or host an ad – don’t
forget to factor in the “hidden” costs of creating digital marketing content.
 Continued…
• USE A COST-BENEFIT ANALYSIS TEMPLATE
Whether it’s an old-fashioned worksheet or a high-end software, strategizing
the cost-benefit of a project before it’s ever launched can help strategize the
most cost-effective concepts to begin with. Using a cost-benefit analysis
spreadsheet or software helps understand the strengths, weaknesses, and
alternatives for the idea, which makes it easier to calculate the risks and
possible roi.
 Continued…
• REMEMBER TO BUILD ON DATA
Once gathered the information and reporting that tells the story
of how successful our campaign was, as well as what it cost to
run, make sure we run future campaigns off that data. If our
blogger outreach was unsuccessful, don’t dump huge amounts of
our budget into those efforts because influencer marketing is
trendy. Spend according to our success.