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Maximizing ROI in Digital Advertising: A Comprehensive Guide for Businesses

Marketing ROI is used to assess the profitability and success of marketing initiatives. It allows businesses to evaluate their marketing campaigns’ financial results and decide if the marketing expenditure yields a profit.

So, it’s like placing a magnifying glass on the marketing activities and asking, “Hi, are you helping here, or should I let you go to the marketing retirement home?”

Therefore, by measuring the ROI, you can identify which marketing tactics are generating the most significant returns and determine where to allocate resources.

But what happens if some of the marketing strategies aren’t generating a positive return?

For instance, in the 2007 film Evan Almighty, Morgan Freeman who played God, instructs Carell to create an arc like the biblical character, Noah. The movie’s award-winning cast, special effects, and marketing might appeared promising at that time. However, its production costs resulted in the biggest budget of $250M for any comedy film. 

After the cast, crew, and studio spent huge amounts of money and time on the film, it only made $67M in its first two weeks.

When compared to Bruce Almighty, which had a comparatively less budget of around $80M, made almost equal amount in its opening weekend. 

Even though this example sheds light on ROI on a significantly large scale, the strategy of calculating your ROI can be helpful to businesses and marketers as they learn which techniques are and aren’t worth repeating.

Now, let’s discuss how can you increase your marketing ROI in simple steps:

 

Top strategies to maximize your marketing ROI

 

1.      Track the right metrics

Whether you’re running organic or paid campaigns, you may be attracted to observe vanity metrics. As the name shows, vanity metrics often seem exciting. However, in reality, they’re blank measurements that don’t determine anything of value about the marketing campaign results.

Moreover, putting energy into monitoring vanity metrics will distract you from concentrating on social media metrics that are important. Consequently, vanity metrics can compromise campaign performance and will use critical resources.

Now, you must be thinking about which calculations are vanity metrics. It depends on the campaign goal.

For instance, if you want to grow an audience, followers are an important metric. But, if your objective is getting more leads, focusing on follower count will become a distraction—or you can call it a vanity metric.

Therefore, if you want to increase ROI, you must understand which metrics to monitor and which to ignore. In most cases, the primary metrics for the campaign should align with the business goal. For instance, if the business goal is getting more sales, profits, and revenue is the most important metric to track.

Remember that you can monitor more than one metric per ad campaign. Just ensure that each one is relevant to the primary goal.

 

2.      Leverage marketing automation tools to lighten your load

Transformation is good, and when it’s technological, it’s a blessing. Gone are the days of implementing every step of marketing strategy manually. It’s a waste of time; time that’s better spent innovating and creating. Simply put, thanks to several online tools, software, and app plugins, automation is the future!

Here are some effective tools that’ll help you automate repetitive marketing tasks:

  •         Organize email sequences at the right times by using MailChimp or HubSpot.
  •         Facebook’s Campaign Planner will help you modify your campaigns and ad spending based on performance.
  •         You can collect and store data about target audience and engagement using Google Analytics.

Even simple marketing automation tools such as social media schedulers will help you save more time and resources than you know.

 

3.      Never neglect A/B testing

A/B testing is an efficient data-driven tool for improving any marketing campaign. Consider it as content testing. You can test different versions of an ad featuring several elements, like email subject lines, calls to action, or images with the same audience to identify which ad generates better results. 

This insight into campaign performance will help you optimize and target your marketing outreach for better effectiveness and to convert more customers.

(Tip: It’s advised to practice continuous A/B testing to keep your campaign efforts on target.)

 

4.      Begin with a personalized website

Does any of the following sound familiar?

  •         Insufficient insight into the customer journey and experience
  •         Business websites and other digital channels fail to close deals
  •         Trouble in forecasting pipeline

You know what? These 3 challenges can be solved with only one thing – a personalized website.

Whether you’re using advertisements, social media, email sequences, or events to attract potential customers, they all have one thing in common: they drive prospects to your business website.

It’s because a business website is more like a storefront. And it’s high time to shift websites from being sales-centric to customer-centric to achieve a greater marketing ROI.

Start by making your business website a conversation. It’s not about changing the branding or layout but creating an impactful real-time experience for the audience who walks through your brand’s digital front door.

 

What that exactly means

Engage

Meet the audience where they spend the most time. Using IP data and firmographic information, determine who arrives at the website and what they are interested in.

 

Understand

Send them to the right person promptly to understand what problems they are facing and how can you solve them.

 

Recommend

Help your audience find the best solution.

This is called the Conversational Framework. It’s like walking into the Apple store. Will you be talking to a sales associate or will you be needing assistance at the Genius Bar? Or maybe you’re there for browsing and don’t actually know what to buy yet.

Similarly, you have to recreate that same experience on your business website in real-time so anyone who visits there feels like you’re around to help them right away.

In conclusion, by employing the strategies mentioned above, your business can identify potential opportunities, engage and excite the audience, attract and retain potential customers, maximize marketing ROI, and ultimately build a positive reputation and credibility. If you have overlooked any of these strategies, check right now as even one of these can lead to double-digit changes in your ROI.

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