Offline advertising channels drive online sales, and vice versa, and a new study reports that businesses embracing an omnichannel marketing strategy can increase ROI by 32% in comparison to those that do not.
The latest ROI Genome report from Analytic Partners, Omnichannel and a Brave New World, looks at omnichannel marketing in the context of the changes brought by the global pandemic and the resulting shifts in consumer behaviour.
One of the biggest shifts has of course been the growth in online shopping. Brands are leveraging e-commerce to stay connected with their customers while at the same time offering flexibility – and there is potential for improved performance with a stronger e-commerce presence, the study finds.
It cites one brand that altered its strategy, understanding that while all media and marketing is omnichannel, some media channels were more impactful for its e-commerce business than others. By optimising spending to maximise and drive its e-commerce business further, the brand was able to unlock a potential additional $58m in revenue through an increase in e-commerce investment while keeping overall spending flat.
In this context, “Amazon is proving to be a smart place to put advertising dollars”, the study notes – and not just for the obvious online performance effects. Almost half (48%) of the incremental sales impact from paid Amazon display ads is halo benefit onto non-Amazon sales.
That’s because consumers often use Amazon as a comparison-shopping engine, checking pricing and reviews before buying elsewhere.
“This highlights the critical importance of developing a clear understanding of how each channel impacts others in the ecosystem and having a holistic view of the relative importance of various marketing factors,” the study states.
And in fact, brands measuring only a single channel are in danger of underreporting ROIs by roughly half.
Sourced from Analytic Partners