When evaluating the performance of your digital marketing campaigns, the key outcome to consider is your return on investment. Is the campaign delivering as expected? And what can you do to improve it?

Business owners and marketers commonly ask these questions, but often they’re unsure of the next steps. Here are the three things you can do to increase your digital return on investment.

1. Get clear on your business objectives and KPIs

Identify your business objectives

To keep you accountable and help you track your progress and results, you need to identify your core business objectives and ensure they are specific, measurable, achievable, relevant and timely (S.M.A.R.T). For example, some of your objectives might be centred around leads (i.e. generate 30 leads per week from Google ads campaign) or around sales (i.e. make $20,000 in online sales per month).

Set your campaign KPIs

If you’re a service-based business, focus on setting your KPIs (key performance indicators) around Conversions and Cost Per Conversion. Conversions may include high intent actions on your website that capture valuable information about your prospect, including ‘webform leads’, ‘enquiries’, ‘appointment bookings’ or ‘eBook downloads’. Your Cost Per Conversion is the amount of advertising spend you spent over the campaign period / the number of conversions. For example, if you spent $350 on advertising in one week and received 10 conversions, your Cost Per Conversion is $35.

The below graph shows how we reduced our client’s Google Ads campaign cost per conversion (in this case, cost per lead) from $92 to $16 (83%). In 6 months, our team not only beat the client’s industry benchmark ($128 per lead) but helped our clients set their own with a customised strategy, weekly campaign optimisations and daily monitoring.

V&F case study: Reduced Cost Per Lead by 83%

If you’re an eCommerce business, focus on setting your KPIs around ROAS (Return on Advertising Spend). Provided your campaigns are set up correctly, your ROAS metrics should be tracked automatically by the platform (i.e. Facebook Ads, Google Ads, Pinterest Ads etc.).

For example, if your campaign costs $1 in advertising spend and makes $1 in revenue, your ROAS is 100% (1:1). If your campaign costs you $10 and makes you $100 (10:1), your ROAS is 1,000%. Most new eCommerce brands will aim for a ROAS minimum of 400%. Some more established brands, like our fashion eCommerce client, often average a ROAS of 2,500% (25:1). However, every business is different and will have varying financial margins to work within and business goals to consider.

Below image is an example of how one of our e-commerce client’s Google Ads’ campaign generated $3,419 in revenue from a spend of $377. That’s a ROAS of 1690.26% in just one week! This was done through significant Google Ads optimisations and redevelopments.

V&F case study: Return on spend (ROAS) of 1690%

2. Allocate more budget for conversion-focused marketing

Most digital advertising platforms will allow you to choose your campaign objectives, whether to generate more brand awareness, more traffic to your website or conversions on your website. This allows the platform to maximise its performance based on your chosen objectives. When reviewing your total marketing budget, consider increasing your spend on conversion-focused campaigns, over brand awareness and website traffic campaigns. While it’s essential to drive traffic to your website, adjusting your campaign goals and messaging to promote conversions (i.e. leads, bookings and sales) will help increase your campaign’s ROI.

3. Nurture and convert your audience

Email marketing and remarketing can help you convert your leads into customers.

Email marketing is one of the easiest and most effective ways to communicate with your leads and nurture them to the point of conversion. Most email marketing platforms have comprehensive automation tools to allow you to set up email marketing sequences.

This might include a welcome email, followed by more information on the business, its products and services, educational tips or blogs, and promotional offers relevant to their actions and preferences. Depending on how well you have qualified your leads, you can segment your lists and make your messages dynamic and targeted to encourage better engagement and sales.

For example, for ‘hot’ leads, you want to ensure you are sending them a promotional offer to encourage them to take action, whether it be a free trial or sample, discount or coupon or a ‘percentage off’ sale. You can also set up abandoned cart emails to assist with conversion if you sell your products online. So when your customer abandons the cart, an email sequence can be triggered to encourage them to return and purchase that product.

Remarketing is a type of digital advertising that targets past website visitors, social media audiences or existing customers to up-sell, convert, and retain existing customers. You can set up remarketing campaigns through Google Ads and Facebook Ads platforms.

Want to increase your digital return on investment but don’t know where to start?

As certified Google Ads and Meta Business specialists, we have a proven track record in helping business grow their sales and lower their cost of acquisition. ⁣

Whether your objective is generating leads, increasing sales, building brand awareness, or solidifying trust through a genuine connection with your audience, we can work collaboratively with your team to develop a marketing strategy and an ad campaign to meet those objectives and your bottom line.

To learn more and enquire visit https://victorandflo.com/services/digital-advertising/