When marketing budgets are tight, every penny counts. If you want to run digital marketing activities to grow your business, you often need to prove that it can provide a return so that your budget for the following year isn’t cut. In fact, research shows that 46.5% of marketers feel that marketing is understood by their business, but it is still seen as a cost to the business rather than an investment.
At Logica Digital, we know how important it is for every investment you make to drive a significant return. But how can you be certain that your digital marketing efforts are delivering the best ROI? And more importantly, could you be getting more from it?
Let’s explore these questions and uncover strategies to maximise your digital marketing’s return on investment in this blog.
Return on investment (ROI) in digital marketing measures the profitability of your efforts. It’s a simple formula: (Revenue from Campaign - Cost of Campaign) / Cost of Campaign. While this may seem straightforward, complexity often arises in accurately attributing revenue to specific campaigns and understanding the full scope of the costs involved.
Digital marketing campaigns should be monitored and optimised as you go along. Platforms such as Google Ads or Facebook Ads allow you to see results in real-time so you can make adjustments as you go along to ensure your budget delivers the best returns.
Here are our top tips for monitoring and improving the ROI of your digital marketing campaigns:
Define specific, measurable, relevant, and time-bound (SMART) goals for your campaigns. These might be directly related to ROI or to other business KPIs.
You might track website traffic, leads generated, user behaviour, conversion rates or other metrics as a benchmark for success. As you run your campaigns, report on these metrics to see if there are any gaps or areas that are performing well. This can help you refine your campaign or create a completely new one that better caters to your target audience.
A channel that works for one business or audience, might not necessarily work for another. Test channels against your KPIs to understand which channels will work well for your business. For example, you might find a better conversion rate on Google Ads than Facebook Ads, or your Cost Per Click (CPC) is lower on one channel than another. Or, you might find that organic traffic converts better for your brand than paid traffic.
Focusing on the channels that work for your business and not trying to spread your budget or resources too thinly can improve ROI. Test and identify the channels that work best for your business. Then, think about how to allocate your marketing budget so that it provides the best returns and results.
The only true way to know how well your campaigns are working is to test them. Experiment with new copy, visuals or links to find the combinations your audience responds well too.
Not only will testing improve current campaigns, it will also give you a better starting point when launching new ones.
When testing, make sure you only test one or two elements at a time. If you change too much you won’t know which had the biggest impact and it will be difficult for you to replicate the same success in future campaigns.
Staying flexible and adapting your marketing budget to respond to changing market conditions is essential. By monitoring your performance and keeping up to date with trends in your industry, you can adjust your budget and campaigns in real-time to ensure you’re always achieving the best possible ROI.
Most digital marketing channels allow you to see results instantly so you can take advantage of opportunities as they arise or cut losses if a particular strategy is ineffective.
To get the most from your digital marketing budget, you need to know exactly who you’re targeting and which channels they’re engaging with and the content they like to see. This allows you to spend your budget in the right place and get the most from it.
Analytics tools such as GA4 can show you where your audience is spending their time, how long they stay on your website and what prompts them to leave. In addition, competitor research can show you how others are engaging with brands just like yours. Competitors with much bigger budgets are likely to have already tested a wide range of channels and messages so they’ve done the hard work for you in finding what works. You will have to do some tweaking to find out what works best for your business but this is a great way to start building your personas.
Remarketing or retargeting can be highly effective. It allows you to generate great returns without having to spend more of your limited budget. You can show ads to potential customers across a range of channels who have already visited your website or clicked on one of your ads but haven’t converted yet.
This is a great way to optimise your budget by providing prospects with a second and even third chance to interact with your brand once they’ve made contact with you. Statistics show that only 2% of users convert on their first visit to an online store and a single remarketing campaign can lead to a 161% increase in conversion rate.
Remarketing is a highly effective tool for your business. It costs much more to drive customers into the top of the funnel than it does to convert those who are already aware of your brand or have interacted with you in the past.
If you want to drive as many conversions as possible, it’s essential that your website performs well. You might have great ads or be performing well in organic search but if your website is difficult to navigate or customers can’t find what they want when they get there, it’s going to be difficult for you to generate any sales.
Ensure your website is mobile-friendly, responsive, fast and easy to navigatr with clear calls to action. Your checkout process should be as simple as possible to reduce friction, boost conversions and make sure you’re driving as many conversions as possible through your digital marketing activities.
There are a range of tools available to help you measure and monitor your digital marketing campaigns. Some are free and some are paid for but they can really help you to ensure you’re getting the most from your budget and allow you to make changes to continually improve your campaign performance.
Take a look at these tools:
Of course, if you’re running Google Ads or social media ads, these platforms will show you exactly how your campaigns are performing, how your budget is being spent and allow you to make tweaks accordingly.
While these strategies can significantly improve your digital marketing ROI, implementing them effectively requires expertise and resources. This is where a digital marketing agency could make a difference.
An agency can bring the experience and tools needed to maximise your marketing investments if you can’t afford to emply the resource in-house or you’re only just getting started with digital marketing. From strategic planning to execution and analysis, they can provide a range of services tailored to the needs of your business.
Evaluting and improving your digital marketing ROI is not just about tracking metrics; it’s about making informed decisions that will help you to drive your business forward. By setting clear goals, leveraging data, targeting the right audience, and optimising various aspects of your marketing strateg, you can ensure that every pound spend delivers the best possible returns.
If you’re ready to take your digital marketing to the next level and deliver the best ROI for your business, our team is here to help. Book a free marketing audit today to learn more about how we can support your business and drive meaningful results.
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At Logica Digital, we take the time to understand your business and customers to create a bespoke marketing plan that will deliver the best return on investment for your business. We always get results.
Call: 0114 551 1534
hello@logica-digital.co.ukWhatsApp: 07822011623
68A John Street,
Sheffield,
S2 4QU
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