A paid marketing strategy puts your business on the map. You can have your brand seen by many people with little work. The key is being seen by the right people at the right time so that you get a positive return on investment (ROI). Spending your marketing budget on paid advertising gets you in front of your audience faster than organic marketing strategies. While it’s exciting to see a surge in traffic, the number that matters the most is your ROI. If your advertising budget exceeds your profits, you’ll burn through cash quickly.
You’ve probably read many paid marketing strategy case studies of other businesses. You want to achieve the same ROI for your business, but how do you achieve that?
Let’s explore how you can maximise your marketing ROI. This article shows you how a paid marketing strategy can help you to grow.
Measuring Your Marketing ROI
Before making any changes to your ads, start measuring your marketing ROI. This benchmark reveals your break-even point. The further you exceed break-even, the more proceeds you will generate.
This straightforward process involves knowing the proceeds for each sale. Some products yield a £50 profit. In this case, your ad spend cannot exceed £50.
Tally up your marketing ROI by adding up your sales and ad spend. If you spend £300 to make seven sales, you end up with a £50 profit. However, if you spend £300 to make four sales, you end up losing £100.
If you hire an advertising agency, include their monthly cost for marketing ROI. If your ads make a £100 profit, but the ad agency costs £1000/mo, you end up losing money.
You can expand marketing ROI to include order bumps and upsells. Some people who buy one of your products may purchase an additional product at checkout.
You can incorporate an order bump and upsell to increase APRU. This acronym stands for average revenue per user.
Measuring your marketing ROI gives you a clear picture of success and where you stand. Assess each future ad campaign on its ability to produce a solid marketing ROI.
Review CPCs Across Your Ad Sets
The cost-per-click influences your advertising spend. Each click bites into your marketing ROI.
While clicks lead to sales, a delay in between sales can lead to a loss. Running multiple ads gives you multiple CPCs. Some ads yield £0.50 per click, while others yield £0.60 per click.
CPCs do not tell the entire storey about an ad’s effectiveness. However, a higher CPC decreases an ad’s potential ROI.
You can go deeper into an ad and view segmented CPC data. You can find CPCs per device, keyword, and ad placement.
Some high CPC ads perform well because the traffic converts better. We’ll talk about what to look for beyond the ad shortly.
However, looking at CPCs across your ad sets can help you save money. You can deactivate poor-performing ads and focus your efforts on your top converters. You can also turn off underperforming keywords in an otherwise robust ad.
Cheque Landing Page Conversion Rates
When someone clicks on an ad, they visit a landing page. Many landing pages prompt a visitor to enter their name and email address.
Cheque your stats to determine how that landing page converts. A low CPC does not matter if your landing page fails to convert visitors into subscribers.
Some advertisers run A/B split tests for their landing pages. Most people use split testing to refine their ad copy. However, using this same approach for landing pages will increase conversions.
One of your landing pages will convert better than the other. Focus on the more successful landing page for future ads. You can continue using split tests to optimise your performance further.
Increasing a landing page’s conversion rate by 10% will increase revenue by 10%. A 10% conversion rate results in a larger group of people advancing to your funnel’s next step.
Review Your Sales Page and Emails
Emails nurture relationships. You may email someone for weeks before they become a customer.
Eventually, some prospects will visit your sales page. Some will make a purchase, while others will walk away. Track the conversion rate for your sales page.
A low converting sales page will ruin the other parts of your paid marketing strategy. You won’t yield significant revenue.
Less revenue tightens the profit margins for your marketing budget. Test variables on your sales page with A/B split tests to address this concern. You should also review your emails.
Analyse the open and clickthrough rates for each of your emails. These metrics let you see how your audience responds to your content.
Every Part of the Funnel Influences ROI
You start with the profit per sale and cost per click. The remaining parts of your funnel determine how many clicks it takes to make a sale.
Each increase in your conversion rates leads to more sales. You can optimise multiple ad sets, web pages, and emails to boost results.
Many advertisers forget about the middle of the experience. They solely focus on the front-end expenses and the final outcome. This approach will limit your ability to profit from a paid marketing strategy.
Get Help With Your Marketing ROI
Operating a small business takes considerable work. Not every owner has time to crunch their numbers and optimise ad sets.
Generating a marketing ROI from a paid marketing strategy takes time. You will make mistakes along the way.
A lack of experience can lead to many mistakes that cost considerable money. Hiring a professional can save time and generate more revenue.
Our company helps small businesses dominate with their paid marketing strategy. We can set up your ads so you can focus on serving customers. Reach out today to see how we can help.