Your marketing ROI is a major indicator of whether your campaign efforts are paying off. Unfortunately, many advertisers struggle to keep an eye on their overall return, especially when they've got so many other facets to monitor. With these strategies, you can better evaluate the performance of your marketing plans and, in many cases, improve the return on your investment.
1. How are You Currently Measuring Marketing ROI?
To adequately measure your marketing ROI, you need to know what key performance indicators (KPIs) you are using. Those KPIs may vary depending on your specific goals for a given campaign. For example, if you want to raise brand awareness, you may be concerned with followers or social media engagement. On the other hand, if you're interested in increasing leads, you may focus on website traffic or in-store traffic.
Before you start calculating ROI, clearly establish the goals associated with a specific campaign and how you will gauge your success. Take a look at previous campaigns to give you a better idea of precisely what you can accomplish with your current marketing plan and the types of results you should expect. If you're working with a media partner, they may be able to provide you with better insights into the KPIs you should use to assess your campaign’s results.
2. How Often are You Measuring ROI?
Measure ROI at all stages of the marketing campaign. The metrics are constantly changing--and those patterns can provide you with a solid look at your accomplishments over time and how consumers respond at each stage.
Oversee your ROI at the beginning, middle, and end stages of each of your marketing efforts. You will get a better picture of how long your campaigns should run, including whether you might need to extend or bring it to an earlier-than-anticipated end based on the response of your target audience.
3. What are Your Specific Goals for Increasing Revenue?
You need specific, measurable objectives to help you calculate the return on your investment throughout each campaign. Try setting SMART goals: goals that are specific, measurable, attainable, realistic, and time-oriented. This way, you end up with metrics you can measure and track throughout the life of your campaign. A media partner can provide you with better insights into realistic and attainable goals, based both on your past performance and the work of others with a target audience like yours.
4. What Kinds of Media or Ads are Performing Well?
Compare different marketing efforts to determine which ones are generating the best results. You want to use your ad spend on promising approaches: the ones that provide the highest return on your investment. While you don't want to put all of your marketing eggs in one basket, you do want to stay focused on the tactics that work best for your industry and your company.
5. What Kinds of Media or Ads are Not Performing Well?
You don’t want to put time or money into poorly-performing media. Whether it’s ads that don’t work well in your industry or media that simply isn't working for your company, don’t waste effort on marketing that yields mediocre results. Focus on the ads that are attracting and engaging audiences. Digital impressions, for example, can significantly boost ROI. Always look at advertising attempts that haven’t fulfilled your goals to help inform your decisions about your next marketing campaign--and talk to your media partner about what strategies or platforms you may want to avoid.
6. What is Your Budget for Future Marketing Campaigns?
Your budget is a critical part of the ultimate efficacy of your campaign. Without adequate funds for your marketing plans, you won't be able to achieve your goals--and in many cases, you'll find that simply increasing your marketing resources can also substantially raise the return on your investment. Know where your goals are headed, then line up the spending plan accordingly.
While you can create a strategy that is compatible with your financial allowances, you don’t want to compromise on opportunities that could make your marketing campaign lucrative. Talk to your media partner about the right budget for your goals.
7. Should You Reevaluate Your Marketing ROI Goals?
A media partner can help you establish the ROI you should expect from your marketing efforts and avoid potential mishaps that could prevent you from reaching those goals. As you're asking these pivotal questions about your ROI, you may also find that your goals, budget, or plans are unrealistic--and altering them can help you see greater levels of success.
Evaluating marketing ROI is a critical part of understanding the performance of each campaign and your overall marketing efforts. If you fail to sufficiently measure your ROI, you may struggle with your ad campaigns or pour money into advertising strategies that aren't achieving your desired results. On the other hand, by keeping up with your growth, you can adjust your campaigns to better reflect progress toward your goals, allowing a higher return on your investment.