Let’s Talk About Marketing ROI
Perhaps one of the best things about digitally marketing your brand is that you are able to better measure the impact it has on your audience and adjust where necessary to ultimately achieve greater marketing ROI.
But before we get into formulas, measurements, and calculations – something which we will write about soon – let’s get back to basics and discuss what it all means and the importance of marketing ROI.
So, what is it?
ROI stands for Return On (Over) Investment. This term has been used loosely to describe paying for something and getting value back on it. However, there is a more formal explanation for ROI. It is a metric which calculates how much a company can profit for each Rand invested.
In the case of marketing ROI, this calculation would be used to figure out the value of a specific marketing strategy. To take a step further, each and every marketing campaign that you run with, needs to be treated as an investment that can bring in a profit (or benefit), and will depend on several factors. In a nutshell, measuring your various campaign strategies’ ROIs will help you to discover whether you are doing the right thing based on the cost benefits.
If a specific campaign is showing very little in the way of cost benefits, you should spend much less on it than a campaign which is proving its worth. Put more money on the winning horse, so to speak. This is especially useful because marketing budgets are normally not as big as the other budgets
It is vital to measure your marketing ROI on every single campaign strategy because it helps you to invest strategically while managing your marketing budget and getting the results to prove you are aligned with the company’s overall objectives.
Here are the 4 main reasons for measuring your marketing ROI:
- It helps you understand the best strategies to use – In the digital realm there are so many effective marketing strategies to choose from that it makes it near impossible to make a strategic decision on which ones will work best. Therefore, measuring ROI can help you accurately pinpoint the best strategies for your brand.
- It helps you understand your audience’s behaviour – Analysing your ROI results will show you what type of marketing content your audience is likely to engage with. This allows you to give them exactly what they need and then you’ll have them eating out the palm of your hand. Or, in marketing speak, they are ready to be converted.
- It helps you to budget better – By measuring the ROI on your various campaigns, you get better insight into which actions require less investment yet yield a good return. Just think how much better you could manage your marketing budget with this powerful knowledge.
- It helps you to achieve your marketing objectives – What are your marketing objectives there for other than to make you think about the best way of achieving them. Tracking your ROI will make the job of getting there a whole lot easier.
There has been a lot of talk about measuring, tracking, metric and results in this article. You may be wondering how to go about doing this when it comes to your marketing ROI. As mentioned above, we will discuss this in more detail in our next article but in the meantime, there are some good tracking tools out there to help you with this. Or you could contact digital marketers who are experts in this field. That’s us, of course! We can help you with all your digital marketing needs and give you the best ROI. Contact us today!