• Subscribe to our newsletter
The Media Online
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs
No Result
View All Result
The Media Online
No Result
View All Result
Home Advertising

Digital marketing agencies need to tap into offline data to elevate performance for their clients

by Grant Lapping
January 27, 2021
in Advertising
0 0
0
Digital marketing agencies need to tap into offline data to elevate performance for their clients
Share on FacebookShare on Twitter

Digital marketers can no longer merely be the people who load and optimise ads across programmatic ad platforms – they must also understand the customer metrics that drive the profitability of the business.

Brands often ask their digital agencies what the industry norm is for cost per click (CPC), cost per lead (CPL) or even cost per acquisition (CPA), presuming that they’ll know whether their marketing is efficient and effective if their cost per engagement compares favourably to the average in their sector.

Leaving aside that the comparisons aren’t always meaningful because each business is unique, knowing that one business’s CPA is lower or higher than the competition doesn’t paint a complete picture of customer lifetime value (CLV). A brand could, for example, be achieving a low cost per acquisition, but attracting customers who quickly churn to the competition or are unprofitable to serve.

For that reason, companies should be moving towards measuring the lifetime value of the customers they convert through their digital campaigns and channels. It’s easier said than done because it demands that digital agencies look beyond digital campaign data and also draw on company-owned insights about its customer base.

This is outside digital media agencies’ comfort zone, since they are more accustomed to working with creative agencies to ensure that the creative is seen by the most relevant audience. They do not, for the most part, have the technical skills to tap into customer data housed in back-office systems to get a clearer picture of how campaigns are driving ROI.

Closing the customer insight gap

Yet, the benefits of closing this gap are potentially large. Marketers would gain a far better grasp of ROI if they could not only understand CPC, CPL and CPA, but also the CLV of converted customers and the cost of sales (COS – media spend as a percentage of the revenue generated).

They would be able to see which channels, sources and campaigns are bringing in the most valuable customers, and could optimise executions accordingly. With a clear perspective on profit margins for a product or customer profile, marketers could adjust COS targets for each. This has created a powerful opportunity for digital media agencies to set themselves apart.

Digital agencies know how to work with clients to use programmatic ad platforms such as Google and Facebook to drive smart campaigns. The key performance indicators (KPIs) for these campaigns are usually determined by an action a user takes on the website, be it clicking through to a landing page, completing a lead form, or making a purchase. In the background, algorithms harvest customer behaviour data via site tags and automatically adjust to targeting and bid ranges in line with the KPIs.

Understanding the tech stack

This approach is already more measurable than traditional media and offers ways to rapidly optimise performance. It can, however, be taken to a whole new level when the algorithms can be fed data from a company’s internal business systems for a more comprehensive view of CLV.

The advertiser could then pay more per click for a product with a bigger margin or for an audience segment likely to have a higher CLV knowing that it is achieving a good ROI. Conversely, it could spend less on customers or products that are ultimately less profitable. The business is thus empowered to look beyond industry-standard KPIs to smart goals tailored to its own definition of business success.

To support clients with this transition, digital agencies will need to develop new technology skills and partnerships. They will have to be able to analyse a client’s tech stack and then integrate it with the relevant analytics and ad platforms. Again, this is not a simple shift to make, but it will be a major differentiator for those that get it right.

Great creative paired with the right media placements remains important, but we believe that this will just be table stakes in the not-too-distant future. Agencies that really want to add value and set themselves apart will need to be able to help their clients maximise profitability by optimising their campaigns based on the metrics that really matter to their business – not KPIs based on industry averages.


Grant Lapping is managing director at DataCore Media


Tags: advertisingcampaignCLVConsumerconsumer dataCPAdataDatacore MediaDigital MediaGrant LappingKPImarketing agencymediamedia agencymedia buyingofflineonlineprogrammaticROI

Grant Lapping

Grant Lapping is managing director of DataCore Media, which helps organisations to drive better results from their digital marketing investments by unlocking the full potential of campaign performance data. Services include digital media strategy, buying and planning across all digital, social media and mobile platforms as well as the implementation and management of the technology organisations need to effectively track and optimise their campaigns

Follow Us

  • twitter
  • threads
  • Trending
  • Comments
  • Latest
Kelders van Geheime: The characters are here

Kelders van Geheime: The characters are here

March 22, 2024
Dissecting the LSM 7-10 market

Dissecting the LSM 7-10 market

May 17, 2023
Keri Miller sets the record straight after being axed from ECR

Keri Miller sets the record straight after being axed from ECR

April 23, 2023
Getting to know the ES SEMs 8-10 (Part 1)

Getting to know the ES SEMs 8-10 (Part 1)

February 22, 2018
Sowetan proves that sex still sells

Sowetan proves that sex still sells

105
It’s black. It’s beautiful. It’s ours.

Exclusive: Haffajee draws a line in the sand over racism

98
The Property Magazine and Media Nova go supernova

The Property Magazine and Media Nova go supernova

44
Warrant of arrest authorised for Media Nova’s Vaughan

Warrant of arrest authorised for Media Nova’s Vaughan

41
South Africa’s commerce media moment has arrived

South Africa’s commerce media moment has arrived

May 30, 2025
Seven Days on Social Media: Child Protection Week, #MyDisappointment and a soppy seal

Seven Days on Social Media: Child Protection Week, #MyDisappointment and a soppy seal

May 30, 2025
Navigating the AI tide without losing our humanity

Navigating the AI tide without losing our humanity

May 29, 2025
The marketing mission remains clear

The marketing mission remains clear

May 29, 2025

Recent News

South Africa’s commerce media moment has arrived

South Africa’s commerce media moment has arrived

May 30, 2025
Seven Days on Social Media: Child Protection Week, #MyDisappointment and a soppy seal

Seven Days on Social Media: Child Protection Week, #MyDisappointment and a soppy seal

May 30, 2025
Navigating the AI tide without losing our humanity

Navigating the AI tide without losing our humanity

May 29, 2025
The marketing mission remains clear

The marketing mission remains clear

May 29, 2025

ABOUT US

The Media Online is the definitive online point of reference for South Africa’s media industry offering relevant, focused and topical news on the media sector. We deliver up-to-date industry insights, guest columns, case studies, content from local and global contributors, news, views and interviews on a daily basis as well as providing an online home for The Media magazine’s content, which is posted on a monthly basis.

Follow Us

  • twitter
  • threads

ARENA HOLDING

Editor: Glenda Nevill
glenda.nevill@cybersmart.co.za
Sales and Advertising:
Tarin-Lee Watts
wattst@arena.africa
Download our rate card

OUR NETWORK

TimesLIVE
Sunday Times
SowetanLIVE
BusinessLIVE
Business Day
Financial Mail
HeraldLIVE
DispatchLIVE
Wanted Online
SA Home Owner
Business Media MAGS
Arena Events

NEWSLETTER SUBSCRIPTION

 
Subscribe
  • About
  • Advertise
  • Privacy & Policy
  • Contact

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

No Result
View All Result
  • Home
  • MOST Awards
  • News
    • Awards
    • Media Mecca
  • Print
    • Newspapers
    • Magazines
    • Publishing
  • Broadcasting
    • TV
    • Radio
    • Cinema
    • Video
  • Digital
    • Mobile
    • Online
  • Agencies
    • Advertising
    • Media agency
    • Public Relations
  • OOH
    • Events
  • Research & Education
    • Research
    • Media Education
      • Media Mentor
  • Press Office
    • Press Office
    • TMO.Live Blog
    • Events
    • Jobs

Copyright © 2015 - 2023 The Media Online. All rights reserved. Part of Arena Holdings (Pty) Ltd

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?