The tools of digital advertising allow marketers to be in control of almost every aspect of their campaigns, from the audience to bidding prices.
You also gain much insight by using metrics that measure campaign performance. This helps you decide where your marketing dollars should be spent, gearing for activities that will generate the most returns for your business, both in the short and long run.
However, great conversion results don’t necessarily translate to high returns. For example, even if your audience signs up a lead form or subscribes to your page, that doesn’t necessarily mean they will pay for your product or service. As such, matching campaigns to revenue has been one of the greatest hurdles for marketers.
To avoid this problem, we need to go back to the basics. Return on investment (ROI) is calculated based on this formula:
Return on Investment = (Net Profit / Total Cost ) X 100
With that in mind, here are a few things you can do in order to improve your results:
Have clear, attainable goals for your campaigns
Without proper goals, you risk being pulled into different directions which decreases the impact of your campaigns. Pick the channels and platforms you want to prioritize, what types of conversion you are seeking, and what your target figures are for a certain time frame.
By focusing on something concrete, you can readjust plans so that you are always on track for achieving your goals.
Lower ad costs
As the formula suggests, lower costs mean you get more out of what you spend. One way to do this is by creating highly targeted campaigns and incorporating remarketing strategies. Tune in to our future newsletter for more info.
Improve conversions by knowing different KPIs per platform
Highly converting campaigns are more investment-worthy. Since there are different channels to reach your audience, you need to differentiate and utilize their biggest benefits.
Across industries, businesses earn $2 for every dollar spent on Google ads. To improve conversions, monitor your Google Ads platform and see which keywords and ads are effective in guaranteeing a click to your website.
While search conversation rates hover around 3.75%, display ads are at 0.77%. However, the low percentage doesn’t mean they’re ineffective. This channel is incredibly useful for highly visual businesses. You also need to adopt an omnichannel presence so you don’t miss out on potential customers and opportunities.
Make sure to compare the results of your campaigns with industry benchmarks and incorporate changes to the images, copies, and strategies accordingly. If you get high impressions but low clickthrough rates, for example, your call to action may be vague. On the other hand, if your reach is low then you should try to change up your audience filters.
Social media is a huge channel in itself with plenty of platforms having their own ad managers to choose from. Part of the charm of social is its highly engaging content.
You will need extensive knowledge on each one such as the behaviors people display on these platforms. Through this information, you can effectively tweak your strategies to nudge your audience to the action you want them to make.
Read more about paid social in our article here.
Consider the other non-generating aspects of ads
Lastly, remember that not all returns can easily be quantified. Some take a while to be actualized but can actually help your business tremendously in the future. This includes driving brand awareness or developing a community.
For example, seeing helpful ads about your education platform can help generate recall for your audience so when they look for a provider, yours will be at the top of their mind.
To ensure high returns for your search, social, and display campaigns, your strategies have to be up-to-date and in line with each other.