An effective marketing strategy is an essential component of business success. However, it can be frustrating to spend an abundance of time, money, and effort on your marketing initiatives, only to see meager results (or no discernible results at all). For instance, if you spend $5,000 on a TV commercial and only see a sales boost of $5,000 in return, you'd likely feel that you've wasted your time and energy on a "break-even" project.
If you're not seeing the ROI you want from your marketing plan, maybe you need to make an adjustment or two in order to kick your strategy into high gear. The following information discusses 6 common reasons why companies don't get the return on ad spend that they want.
1. You're Not Speaking to the Right People
If your marketing efforts are not properly targeted, then you could be "selling water to a fish" — in other words, advertising your product to people that have no interest or intent to buy. To illustrate this, think about a mortgage lender that generates content around the benefits of renting. Even if their content has value, it's targeting the wrong crowd.
How can you avoid this trap? You need to accurately segment your target audience and understand each demographic's needs, interests, and pain points. You should also recognize where each subset is located within your marketing funnel. When you have a keen understanding of your ideal consumer, you'll be able to speak to him or her in a way that will entice, attract, and persuade.
2. You Aren't On the Right Platforms or Channels
Once you know to whom you want to talk, you need to determine where you can reach them. It's important not to stretch yourself too thin by trying to focus on all the many marketing channels available today. Instead, focus on the social media platforms that the majority of your target audience uses. Also, determine which TV stations or streaming services they watch, and when.
For example, if a B2B company exclusively markets on Facebook, they'll likely see little results from their advertising campaigns, since LinkedIn generates 80% of social media B2B leads. However, if that same company diverts its resources to LinkedIn, they'll no doubt see an immediate increase in ROI.
3. You Aren't Advertising Often Enough
It's important to market to your consumers on a frequent basis. You want to ensure that your message gets in front of the right people, at the right time, and in the right way. In order to accomplish these goals, you need to advertise with frequency and regularity.
For instance, if you only buy TV spots on one station for the 6:00-6:30 time slot, Monday through Friday, then your ads won't reach daytime or weekend viewers. You'll also miss out on the audiences for other stations. However, when you advertise frequently across several marketing channels (TV, social media, OTT, digital) you'll maximize the reach and impact of your messaging.
4. You Aren't Advertising Long Enough
Consistency is key in the world of marketing. Some companies make the mistake of advertising for a time and then putting a stop to their efforts. However, if you were to do that you would lose one of the most powerful advantages that consistent advertising can bring: top-of-mind awareness (TOMA).
How impactful is TOMA to advertising ROI? A Nielsen study of the automotive industry found that 90% of all purchase intent is the result of unaided (or top-of-mind) awareness. In other words, if your company is the first brand that pops into a customer's mind when they think about your industry, then they'll be much more likely to buy from you.
5. Your Creative Isn't Compelling Enough
Realistically, some ads simply aren't very informative, interesting, or entertaining. If your ads fall into that category, then it will hurt your overall ROI. For example, animated commercials that feature poor production values may undermine the brand's credibility or cause viewers to mentally "tune out."
In order to remedy this problem, ask yourself the following questions:
- Is my ad compelling?
- Does it address my audience's pain points or interests?
- Does it have a "hook" to get the viewer's attention?
- Does it have strong production values?
- Is my call to action strong and clear, or is it bland and vague?
Of course, if ad creative is not one of your core competencies, then you may need to reach out to an experienced media partner for assistance.
6. You Don't Have the Resources to Handle New Business
Finally, you may be doing everything right when it comes to your marketing efforts. However, if you don't have the infrastructure in place to handle an influx of new business, then you'll only end up with a multitude of dissatisfied customers — and that will only result in negative press around your company.
The solution to this issue is simple in concept: make sure that you have the people and processes in place to care for a swell of new customers. As an example, if your company has a customer support team, make sure that it is sufficiently staffed so that callers don't have to deal with long wait times.
In summary, there are many marketing missteps that could result in poor ROI. However, by analyzing your brand's marketing plan and making adjustments as needed, you'll be able to maximize your ROI and grow your business. If you need the help of advertising experts to achieve your business objectives, don't hesitate to reach out to a reputable, experienced media partner to start seeing the ROI you want.