Tag Archives: Pay per click

Digital Marketing, Email Marketing, SEO, Social Media Marketing

Return on Investment for Various Digital Marketing Strategies

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John Wanamaker, the pioneer of modern-day marketing once noted that half of his advertising budget went to waste. The religious leader, merchant, and political figure like many business owners of the day, also recognized that could not tell which half of his ad budget went down the advertising drain. John Wanamaker’s fledgling business eventually grew from a successful department store to become part of Macy’s.

The prolific entrepreneur that John was would be very much at home with the modern-day digital marketing practices. Digital advertising usage has dramatically increased since late 1994 when the first known banner ad flashed on HotWired.com. The launch of Google AdWords and Google Ad Sense in the early 2000s followed by Facebook Ads’ release in 2007 quickly turned the tide against traditional advertising methods.

They have given the marketer fantastic benefits, which include the accurate and precise measurement of advertising return on investment (ROI).

What is the ROI of Typical Digital Marketing Strategies?

The return on investment of any business process is an outcome of two main measurements; the cost of the process and the resultant outcome generated. The measure of costs and impacts is not a straightforward process in advertising. Consequently, large organizations utilize composite ROI formulas that factor in their multiple costs and impact variables. The ROI of traditional advertising, therefore, remains highly undeterminable.

The analytics of data in modern digital advertising, on the other hand, can reveal the minute details of ad campaigns and their ROI. So, how much should you expect from your online marketing efforts? The digital advertising ROI is a product of its revenue to marketing value ratio. The only question that you need to answer with your digital ad channels is, “how much am I generating for each dollar that I spend on marketing”?

A typical revenue to cost ratio for digital advertising is 5:1.  Therefore, a dollar spent on advertising should bring in a five-dollar revenue. If your advertising efforts can produce a 10:1 ratio, classify your online advertising efforts as top of the range.

How Can a Good ROI Be Improved in Digital Marketing?

Some of the costs that you have to factor in when calculating your ROI are;

  • Media spend
  • Pay-per-click costs
  • Cost of content production
  • Display ad clicks
  • Digital Marketing agency costs

Your ROI should cover all the costs of product processing and its marketing at the bare minimum. To cater to all these costs you need to place data at the center of your operations. Data-driven marketing can improve your ad ROI. Unfortunately, over half of all marketers do not collect or analyze digital advertising data. 

 87% of marketers that work with organizations that collect this data feel that this critical information is the business’s most underutilized asset. If your executives do not take data as a top priority for your business, then your ROI could remain in the dumps for a long time. To improve your ad ROI, 

  • Change your strategy and become a marketing driven organization that explores customer data in detail. These practices will bring new customers and keep loyal clients contented.
  • Set up SMART or ROI goals that have Specific, Measurable, Achievable, Relevant, and Time goals such as an ROI of 5:1. These goals should factor in your business’s cost of production, industry, and structure.
  • Place an emphasis on data metrics that have a direct impact on your ROI. Overvalued metrics such as social media likes will not affect your ad ROI but will improve your SEO.
  • Use your data to identify new and old business opportunities.
  • Embrace predictive modeling’s ability to increase and measure your ROI
  • Use marketing automation tools to manage complex advertising campaigns that have tight budgets.
  • Keep experimenting and adjusting your strategies to reap the highest benefits from digital adverting.

How to Improve Your ROI through Digital Marketing Strategies?

Search engine optimization

SEO will optimize your website and enhance online visibility via an improved position in organic search rankings. Good SEO will direct more traffic to your site and increase your revenue. This practice will also bring in long-term benefits such as sustainable rankings, keyword targeting precisions, brand flexibility, and credibility. One other fantastic benefit of SEO is that it is an affordable and efficient way to boost your ROI.

Search engine marketing

These advertising strategies can rank your business ahead of its competition via sponsored ads. It is a source of short-term ROI improvement since it brings in quick leads. Nevertheless, SEM has the potential for long-term benefits such as increased visibility, audience development, precise targeting, and high-quality lead generation.

Content marketing

Providing value to your online audience can increase traffic to your website. Content marketing is therefore central to SEO. This practice has long-term benefits such as increased visibility, trust, reputation, and lasting value. 

Social media marketing

A good social media marketing strategy will increase your bottom-line by building your brand’s online reputation. Paid social media ads can significantly influence your ROI. Its benefits are that it is a low barrier entry, effective and affordable brand awareness tool.

Email marketing

Email marketing is a sure bet in ROI increase. Data shows 67% of all businesses consider it as their topmost source of digital marketing revenue. Email marketing utilizes promotional offers or newsletters to build subscriber lists.  

This channel will keep your customers loyal to your brand and attract new leads as well. This simple and affordable digital advertising strategy has the benefits of traceable data and an ROI focus.

Video marketing

This is currently huge in terms of getting users engaged and converting. Video builds trust quickly. And when well done, it can win you some loyal fans. Use a free video editor like InVideo to create awesome videos. Take advantage of royalty-free music if you want to play something on the background.

Conclusion

Digital advertising has risen on the back of online inventions in the display, search, programmatic and native advertising giving you a wide range of opportunities that can take your brand to its next level of growth. Promotional content in digital advertising is brought to the attention of your target market via digital and online channels. 

These may include email, social media, mobile apps, search engines, websites, or affiliate programs. Unlike the traditional methods of advertising in Wanamaker’s time that had a spray and pray outlook to ROI determination, digital advertising is data-driven. Data makes it easy for you to increase your digital advertising ROI and to grow your business.

Author Bio

David Freudenberg is apart of the Public Relations team at DJO Productions a multi-platform production website where videographers, producers, artists, marketers, and more can download SFX&Music, VFX, Media Elements, Graphics, 3D images, and more. When he is not building relationships at DJO Productions he enjoys fishing, boating, and hanging with friends.

Digital Marketing, PPC

PPC Campaign: How to Avoid Wrong Audiences

Over the years, Pay-Per-Click (PPC) Marketing has proven to be one of the most effective and fastest ways to reach your target market, generate customers for your brand and grow your business. It has been also one of the fastest ways to have a high return on investment. PPC can get your business in front of a specific target audience thus making it integral to make your business into a success.

However, as more and more brands leverage this method to boost their online presence and eventually convert each click into sales, there has been a lot of mistakes done along the way that makes PPC ineffective and leads to targeting the wrong audience. While some marketers view PPC as an easy task, many fail to avoid doing said mistakes that lead to not making the most out of their budget.

So, here are some of the major PPC mistakes you should avoid targeting the wrong audience.

1. Failing to Know your Target Market

Your target market is the most important factor in doing your PPC campaign and if you fail to identify your target market, you will end up reaching out to the wrong audience. Though it will still be shown to people which you can still consider an “audience”, these people will show less interest than your target audience.

In showcasing any of your ad campaigns, either it is PPC or other marketing methods, it is essential to figure out your target audience. It is important however to note that you also must avoid streaming too thinly to a niche market as your campaign will not get traction or getting too broad with your desired market will not give you the traffic you want.

Create your buyer’s persona. Doing this will let you know your potential more and can hone your marketing strategy better.

2. Having No End Goal

Launching your PPC campaign without a definite strategic plan and a clear understanding of your objective, will not make it a success. Your goal should be the starting point of your strategy.

Failing to set a clear plan and failing to identify your goal will cost you more than you should do, will not be able to reach your target audience and will not give you optimum results as this is a crucial step for your campaign. If your audience is not defined, you will not know to whom your offers are geared toward and may be sent towards a wrong crowd. 

In order for your PPC strategy to be effective and to avoid hitting the wrong crowd, you need to clearly define your goals and objective that you need to accomplish. This will be your guide to implementing your campaign and making sure that you will get an optimum result.

3. Not Tracking your Campaign

If you are not tracking your PPC campaign, how will you know if it is effective? How will you know you know if your end goal is being achieved? How will you know if you are targeting the right or wrong audience?

It is important to track and know your PPC campaign performance to let you know if you are on the right track and help you understand your strengths and weakness in doing the campaign that will help you know where to do some improvements. It will give you feedback on whether your goals are being met and if you are targeting the correct consumers.

Your PPC campaign will not get an optimum result if you will not keep track and check your campaign after they were launched and already live online. Tools like Google Analytics will help you track your campaign journey which you can interpret to make your strategy a success. It will also be an aid to let you know if you have been stuck on the same promotion for too long already and it is not already effective in keeping your audience interested by giving you a diminishing result.

4. Irrelevant Copy and Emotionless Content

Another mistake that marketers and business owners keep on repeating when doing any campaign is producing ad-copies that are irrelevant and unrelated to their target audience.

If you are just starting and new to online marketing, creating ad copies can be hard for you. Even if you have an experience already, it may still be a bit tricky. Research on how an ad can make you click and you can apply it to your target consumers. Creating confusing copy and emotionless content can land you to the wrong audience.

Strive to write better ad copies to avoid a lower quality score of your campaign. Study other ad copies and the images that they have used.

5. Not Testing Conversion and Not Doing Split Tests

Split testing is creating small variations of a single ad. By doing this method, you will be able to know which of your ad works best for your PPC campaign and which does not. This strategy can also help your conversion rates and validate which of your particular campaign is working and effective in targeting your desired audience.

Doing a split test can help you find a winner ad which you can keep and an underperforming ad which you can improve.

Final Thoughts

Technology gave marketers and business owners like you a lot of options to promote your product and grow your brand. One of the most effective especially when done right, is the PPC campaign.

However, this type of marketing method may seem to be easy but it is actually harder than it is really is. It requires time,  knowledge and understanding of its strategies and how to implement it to make it work. It is important as well to be aware of the major mistakes you can make and how it can be avoided when you launch your campaign. Committing such mistakes can lead to loss of money, poor conversion and targeting to the wrong audience.  Knowing of such possibilities can ensure that your ads will reach your desired audience, can encourage them to make the necessary action – which is to click your ads and help translate each click into sales.

Author’s Bio

John Ocampos is an Opera Singer by profession and a member of the Philippine Tenors. Ever since, Digital Marketing has always been his forte. He is the Founder of SEO-Guru, and the Managing Director of Tech Hacker. John is also the Strategic SEO and Influencer Marketing Manager of Softvire Australia – the leading software eCommerce company in Australia and Softvire New Zealand.