Digital asset management is the process of efficiently organizing, storing, and distributing digital assets within your company. Digital assets can include all types of content and data, such as documents, videos, images and more. A DAM system helps you streamline management of these different assets within the company, from the moment they’re being created to the point of archiving them for future use or filing. Implementing a DAM system is a tactic for asset optimization. We have written a lot about DAM, so there is plenty to dig into. To learn more about DAM, DAM platforms, and how to start working on digital asset management, the step-by-step onboarding guide to digital asset management is a good starting point. Also take a look at the Trends in digital asset management that WoodWing predicts for 2024. That should bring you up to speed.
A digital asset management system is usually composed of a few key components that can help you work more efficiently and less costly. Here are some of the benefits of working with a DAM solution:
Asset organization
DAM systems provide tools for organizing digital assets into categories, folders and other structures. This makes it easy to search for specific files.
Metadata management
Metadata, such as keywords, tags and descriptions, are attached to the digital assets themselves to provide aid in SEO.
Brand consistency
Digital asset management streamlines your workflows and automates your digital asset creation and distribution process. That not only helps with faster time to market but also supports your brand consistency.
Storage and versions
Digital assets can be stored securely, often with capabilities to manage different versions of your content.
Easy collaboration
Many DAM systems support collaborative workflows, allowing multiple users to work together on a single piece of content in an effective way.
Asset distribution
DAM systems help distribute digital assets to channels and platforms like websites, social media and marketing campaigns.
Authorized access
DAM systems help manage usage rights, licensing, permissions, and copyrights associated with digital assets to ensure compliance with legal and regulatory requirements.
Analysis and reporting
Some systems offer analytics tools to track performance, engagement and more to provide insights into how you can optimize your asset management strategies.
Return on Investment (ROI) is a financial metric used to evaluate the profitability or efficiency of an investment relative to its cost. It measures the return generated from an investment compared to its initial cost, typically expressed as a percentage. A digital asset management ROI refers to the return of investment on the DAM system you implemented.
This is the most used formula to calculate ROI, in which Net Profit refers to the revenue generated from the investment, and Cost of Investment to the cost of the initial investment – in this case the purchase and implementation of your DAM system.
ROI = [ Net Profit / Cost of Investment ] * 100%
ROI gives you insight into the profitability of an investment. A high ROI indicates that the investment generates more revenue than its cost, while a negative ROI means your investment did not generate enough revenue and has resulted in a loss.
Of course, when making an investment, you're aiming to achieve the highest possible ROI. For a DAM investment, it is no different, and luckily, the calculation is done using the same formula. However, there are more ways to calculate your digital asset management ROI. You can find plenty of DAM ROI calculator tools available online to help you calculate the ROI percentage. The outcome of any calculation, done with or without a tool, is still an estimation, not a definitive number.
Now that we know what DAM is and what ROI means, let’s put the two together. DAM ROI refers to measuring the financial benefits or returns obtained from investing in Digital Asset Management, relative to its cost. It is important to not only look at the cost of purchasing and implementing the system, but to also take the cost of maintaining your DAM into consideration.
The ROI on a DAM system can vary depending on several factors. The size of your organization, the scope of the DAM system, the existing asset management strategies, and your specific goals all come in to play when evaluating the ROI.
There are a lot of factors in play when assessing the return on investment of a digital asset management system. It is important to evaluate all these various factors when you’re focusing on your DAM ROI.
You can calculate the average time spent per asset-related task before and after the implementation of your DAM system. For example: time saved per search, per download, or per process. Time saved means money saved.
Analyze key performance indicators (KPIs) of marketing campaigns or other initiatives that utilize digital assets. Compare campaign metrics before and after DAM implementation to assess any improvements.
Creation costs time and money. Analyze historical data on asset creation costs, including design, photography, videography, and licensing fees. Compare these costs before and after you implement DAM to identify any cost reductions.
When assessing the digital asset management ROI it’s important to consider both quantitative and qualitative factors. Qualitative factors may include better collaboration, brand consistency, and compliance. Combine quantitative factors with qualitative insights to gain a full understanding of the ROI on DAM systems for your organization. Asset optimization as a whole can bring many benefits to your organization, both quantitative and qualitative.
There are other factors to consider when calculating your DAM ROI. If it is necessary to train your staff in the use of a DAM, those costs need to be considered. Training costs time and money. The same goes for the costs of integration. If you need to integrate your DAM with other software within your organization, you might also have to invest in other resources or services to ensure an effective implementation process.
Implementing a DAM system helps streamline your digital asset management. This leads to improved efficiency, collaboration, brand consistency and cost savings. When you are looking for a solution that is more than just a better way to store files, it could very well be a good time for you to invest in a DAM solution. Efficient digital asset management gets you an ROI that well makes it worth the effort of time and cost for implementation. Keep a close eye on your ROI to make sure you’re heading in the right direction.
Looking for a DAM system? Check which digital asset management solution best suits your business.