ROI, or return on investment, is among the most reliable tools for marketers to gauge the performance of their efforts. Precisely, it measures the profitability of marketing campaigns to help determine whether a marketing strategy is worth the investment. Based on the ROI of your efforts, you can make the most appropriate changes to streamline these efforts for better results.
It's normal to be uncertain whether you're getting the ROI you'd like when launching a new ad campaign. However, you can more effectively determine how well your campaigns are performing by tracking them from the beginning. As a campaign progresses over time and provides measurable results, you can then adjust your strategy as needed.
When evaluating ROI, it's essential to follow specific marketing ROI best practices. In the process, ask the following questions to track your campaigns and measure ROI successfully.
1. Do Your Goals Match Your Creative?
You must have specific and realistic goals in place to measure your ROI and understand how it explicitly reflects your progress toward those goals. Once you've set your goals, you need to make sure your ad creative matches your goals. This entails aligning your messaging, visuals, and calls-to-action with goals such as boosting brand awareness and driving sales. If your ads aren't performing the way you want them to, you could try adjusting creatively to yield better results.
2. Do Your KPIs Measure What You Want Them To?
Key performance indicators (KPIs) are the principal method measuring ROI. Your KPIs need to be aligned with your marketing goals to reflect what you're trying to measure accurately. For example, your primary goal when first advertising will likely raise brand awareness and introduce people to your business.
The corresponding KPIs that enable you to measure project ROI will include impressions and ratings for digital and TV ads. Meanwhile, the goal of another campaign might be to bring more people to your website and make a purchase, in which case KPIs could include click-through rates, website traffic, and sales.
3. Are Your Channels Working Together?
Your ad campaigns' messaging also needs to be cohesive across all marketing channels to achieve the impact you want with them. Otherwise, your ads could form an inconsistent picture of your brand, making it harder for people to recognize and trust you. If your marketing channels work together, you'll have the chance to establish precisely who you are, your brand mission, and the value you bring to your target audience.
You need to have the same messaging and branding available across different ads, ultimately encouraging people to buy from you. You can begin by figuring out how to stand out with your messaging and incorporate that strategy into TV commercials, digital ads, and other content. As you connect with more audiences, you'll differentiate yourself from the competition and stay top-of-mind among audiences.
You'll then be able to measure your ROI to determine precisely how well these strategies are performing. If you find that another approach is worth taking for better ROI, be sure to implement it across all relevant marketing platforms.
4. Have You Given Your Campaign Enough Time?
While some marketing campaigns can take a short amount of time to yield measurable results, others can take much more extended periods of time. It pays to give your campaigns ample time to grow and achieve your goals. If you're too impatient and make changes too early, you may never see the results you want as you cannot determine what's working and what isn't. This could lead to going over your available budget and set your business back.
One of the most successful strategies companies use is to check campaign performance at the end of the year. Based on what they learned from that year, they can begin planning for the next and pivot according to their performance. To figure out how well you performed over the previous year, you'll need to check your sales growth over that period.
Additionally, check for increased social media engagement, webpage traffic, and foot traffic to guide any changes you're considering. Any underperformance in these areas can indicate why you don't see the ROI you want. In turn, you can then develop a more effective roadmap going forward.
Keep Track Of Your Business's Health By Tracking ROI
By asking yourself these questions and implementing marketing ROI best practices, you'll be able to see better and more consistent results. From the start of your campaigns, you need to set clear goals, align your ads and KPIs with those goals, and give your campaigns enough time to develop.
Taking these steps for each campaign will help make sure your ad budget doesn't go to waste. As you calculate ROI throughout your campaigns, you can monitor and maintain the health of your business.