June 11, 2018

Digital Index

What is your "digital index"?

How do I compute the "digital index"?
  • Step 1 = Sum all non-digital advertising spent during the past twelve months.
  • Step 2 = Sum all digital advertising spend in the past twelve months.
  • Step 3 = (Step 1) / (Step 2).
Here's an example.
  • Annual Catalog Spend = $10,000,000.
  • Annual TV/Radio/Non-Digital/Non-Print Spend = $3,000,000.
  • Annual Digital Spend = $4,000,000.
  • Digital Index = ($10,000,000 + $3,000,000) / ($4,000,000).
  • Digital Index = 3.25.
If your digital index is close to zero, you are a strong digital brand.

If your digital index is close to one, you are a balanced brand.

If your digital index is > 2, you are an old-school brand.

The value of the index isn't good/bad/otherwise ... it just helps you understand where you stand. I keep hearing from folks who think that having a website and mobile presence and being on Instagram means that their brand is "digital" ... and then their Digital Index is 4.93.

Calculate your Digital Index.

What does your score tell you about your brand?

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