Nowadays, everyone talks about ROI. Important for every business, it’s not just a catchword but a metric that clearly shows whether your marketing efforts generate profit or do the opposite.
Whenever you are plotting to roll out a new marketing campaign, you should put to the test your advertising strategies to ensure all the hard work (and hard-earned money) will pay off. If you want to reach your goals, do not settle for anything less than consistent positive ROI, and here is how to achieve it.
What Is ROI?
Short for return on investment, ROI is exactly what it says on the tin – a ratio between net profit and cost of investment. Even though, a simplified formula for calculating marketing ROI would be something like:
ROI = (attributable sales growth – marketing cost)/marketing cost
In reality, those formulas are far more complex given a host of elements that constitute the attributable sales growth variable. The latter comprises a range of various elements including the number of leads and lead-to-customer-rate, therefore it’s pretty tricky to calculate if you do not have special knowledge and skills.
What Is A Good ROI In Marketing?
Have you ever wondered, when people spend $1 on marketing, how much they expect in return? While these expectations can vary greatly depending on the industry and size of your business, one thing is for sure – nobody wants to end up with a zero profit or even worse, to make less than a dollar for every dollar spent.
What is considered a good ROI? Experts from Falcon Digital Marketing explain that in the case of PPC advertising online, a target ratio should be 5:1, meaning every $1 spent on a marketing campaign should yield $5 in revenues. It’s very important to set goals, which are really achievable rather than be frustrated by failing to hit a delusive 10:1 spot. This is not to say, your company can’t make it to a staggering 800% benchmark reported by Google Ads, but you will need to fully optimize your strategies to produce such a big growth.
Use Google Ads To Find New Customers
As the world’s largest pay-per-click platform, Google Ads is arguably the swiftest and easiest way to reach your target audience and to enjoy the fruits of your investment in a short period of time. Undoubtedly the best place to advertise if you want to find new customers, it delivers fast results for companies regardless of the industry they belong to, from real estate and property management to healthcare and law firms.
Just a heads up, Google Ads is a very complex system, and to make it work for you, you need a heck of a lot of knowledge as only a high-targeted strategy completely optimized for leads, conversions, and ROI will bring you desired results.
Take Advantage Of Social Media Platforms
Facebook, Twitter, and Instagram boast huge audiences of active users, hence if you want to boost your brand awareness and bring your products and services right in the front of the right people, do not skip a multitude of opportunities delivered by social media platforms.
Your potential clientele is targeted on the base of demographics, interests, and a variety of behaviors, that is why you can’t find a better channel to advertise your business to the people who are your would-be customers. Apart from extensive global coverage combined with a careful selectivity, by paying ads at popular social platforms, you get a great value for your money, since this element of digital marketing is one of the most affordable out there.
Add A Remarketing Campaign To Boost Conversion Rates
Despite what you may think, remarketing campaigns are real boosters of conversion rates as nothing can compare to a friendly reminder that kindly asks people to return to your website and complete the purchase. It works equally great for business with both short and long sales cycles and is seen by the majority of experts as one of the most effective instruments to significantly increase the number of users who have completed a certain desired action at your site.
Positive ROI is something your digital marketing strategy should be focused on, that’s why it is essential to create your pay-per-click campaigns with this idea in mind. Can you think of something worse than to spend a lot of money and to fail to get tangible results?
To avoid such an unenviable scenario, make sure your advertising strategies are well-thought-out and tailored to your business goals. In addition to that, be ready to keep track of developments and perform frequent adjustments to reach your desired ROI.