RETURN
ON INVESTMENT (ROI)
Return
on investment is a vital measurement of the success of any direct marketing
campaigns.ROI can be measured in a variety of ways for instance, lead
generation, clicks, revenue generated, customer acquisitions among others. In
observing how other companies measure their ROI, we used OLX as our case study.
OLX
is an online company which was founded in 2006 and operates in more than 50
countries. It has been able to use social media well with sites such as
Facebook, Instagram, Twitter, LinkedIn and Snap chat. Everyday millions of people all over the world
buy and sell goods using OLX. The platform has over 200 million users monthly
hence generating traffic of over 11 billion monthly page views. According to Griffith
(2014), approximately three billion people are online, many of them skipped desktop
internet and went straight to mobile. Television ads directed them to a website
or app.
Customer
acquisition
This
is defined as the best mix of media and engagement tools to gain new customers through
targeting them and reaching them through online and offline customer journeys.
According to online classifieds website OLX, there has been an internet user
visiting its website via mobile devices. OLX revealed that over 65% of its
internet traffic is from mobile devices and it’s moving on a faster rate. OLX
has more than 750,000 Facebook fans who engage on the platform who communicate
with the company. Social media has enabled it to reach to its target audiences directly
( IT News Africa, 2015).
Clicks
It is an evaluation metrics that provides digital
marketers with clear insights regarding the number of clicks achieved by their
web campaign. It refers to the number of ad clicks. Total visits to the
location relevant to your strategy can be measured for example by landing a
page for a pay per click campaign.
Measuring the number of visits is important because it helps an
organization or company to get an idea of how well its campaign is driving
traffic. For example, the OLX clicks for facebook ads are 722,605 and has a ROI of 9.93%.
