Making the Most of Your Marketing Budget
You don’t have an unlimited advertising budget, so you want to get the maximum results for every ad dollar you spend.
Improving your return on investment (ROI) or return on ad spending (ROAS) is easier than you might think. Here are 4 things to remember before you launch your next campaign:
- Testing Beats Guessing
You’ve done your research. You know who your customers are and what they like, and you incorporate all that knowledge as you build a new ad campaign. But even if you’re absolutely certain that you nailed it, you shouldn’t launch a new campaign without thorough testing.
Small details like color or typeface can have a big impact on how your audience responds to your ad. Test out different versions and use your data to create ads that are guaranteed to land with your target audience.
- Make It Personal
Generic ads meant to appeal to everyone rarely succeed. Targeted advertising is far more effective, and it’s so widely used that it’s become customers’ baseline expectation.
Your customers want to know that you GET them. You understand their wants, needs, frustrations and expectations, and you have a solution for all of it! Segment your list carefully, and focus on creating highly targeted, niche ads for each segment of your audience population.
- Try Something New
Business owners tend to stick with what works. Who can blame them? Nobody wants wasted ad spend, but if you constantly stay in your safety zone, you’re probably missing opportunities to broaden your audience and expand your brand awareness.
Don’t be afraid to try different platforms, strategies, and methods. You might not win every time, but you’ll learn things that ultimately help you refine and improve your marketing strategy, and that’s priceless!
- Know Which Metrics Matter
In order to determine if you’re getting good ROI, you’ve got to be able to assess how your ads are performing. There are 4 key metrics that help you discern whether or not your ad spending is paying off.
Cost per sale - divide the total spent on your campaign by the total sales you earned from it. If the number you spent is higher than the number you earned, you need to find ways to lower your cost per sale.
Conversion rate - check your conversion rate on each platform (most platforms include this option in their analytics dashboard) to determine exactly how many website visitors are converting to paying customers.
Customer lifetime value - helps you pinpoint how much customers will spend in their lifetime. Simply multiply your average sale per client by the number of times they buy from you each year.
Cost per lead - divide your total campaign spend by the total number of leads generated during that campaign. If you’re spending more to generate leads than you’re earning in conversions, you’re not getting the ROI you desire.
The Resonetrics team can help you make the most of your advertising budget. Click HERE to learn how!