In the previous post, we talked about the most effective digital marketing channels and how measuring assisted revenue is just as important as direct revenue. In this post, we’ll dig a little deeper to try and understand why certain digital marketing channels provide more direct revenue, while others provide more assisted revenue.
You have to understand that different digital marketing channels represent different parts of the consumer buying process. Social Media, for example, tends to have a high amount of assisted revenue and a low amount of direct revenue; presumably because people who see you or your ad on Social Media are only in the awareness step of the buying process and are still researching. Your Facebook or Twitter account may simply be the introduction to your brand.
Google recently published a report that looked at over 36,000 of its customers’ Analytics accounts (permission was granted by the account holders) to try and determine where certain digital marketing channels fit into the buying process. Below is a chart that details just that.
As we move from left to right in the illustration, we also move through the buying process, starting at awareness and ending with the decision to purchase.
But this only becomes useful to the hotel marketer when we think of it in terms of online revenue. Channels further to the right represent channels that typically lead to more direct revenue, while those further to the left represent channels that typically lead to more assisted revenue, simply because of where the channel is located in the buying process.
Here’s a real-life example of what the assisted vs. direct revenue in Analytics looks like:
We can see the source under “MCF Channel Grouping” and then assisted revenue under “Assisted Conversion Value” and direct revenue under “Last Click or Direct Conversion Value”. It will also tell us the number of conversions for each source.
The next time you’re thinking about your digital marketing efforts and how they’re performing, be sure to consider where their place is within the consumer buying process. Not all forms of digital marketing are meant to generate direct revenue.
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