ROI – or return on investment – is perhaps the bread and butter to any business. It’s a staple, keeps everyone full, and should always be on the table. Why? Because ROIs are what allows a company to know how much money they are bringing in from advertising. But it’s far more specific than just looking over the books. ROIs allow a business to see what type of funds each aspect of their marketing efforts have to offer – social media, paid ads, commercials. Whatever ads are taking place, tracking their incoming profits provides the ability to see where that money is best spent.
But let’s back up a few steps. How is ROI tracked? Thanks to all of the analytics software in place for online marketing, companies can easily tell when and where each click came from. For instance, paid Facebook ads (and free pages) come with day-by-day analytics. It shows how many users clicked, how many viewed each post, and so on. Compare those stats to the days and times each ad went out, and it’s instant ROI tracking.
The same can be said for pay-per-click ads, which track user searches and destinations. Then, all that’s required is to follow sales from that day (or traffic, which is still a return), and viola! ROIs are measured and filed away for future use.
Letting the Numbers Fly
In contrast, failing to track these numbers is practically like blinding a marketing team. Without known where their advertising dollars are best spent, how can they bring in the most returns? Or worse, if times or ads are never updated, companies will have nothing to compare to each ad. Without adjustments, there’s no telling what’s working vs. what isn’t; there simply isn’t the data to support either side.
Another aspect of measuring ROIs comes from isolating movements. If too much is changed at once (or in close relation to one another), it’s impossible to tell which adjustment affected sales. For instance, when putting up a new PPC ad, wait several weeks before updating meta tags, changing web content, or recalculating the ad’s running times.
In other words, tracking one’s ROI tells where sales are coming from, and which advertisements are the most effective. Marketing without following the subsequent numbers will waste funds and fail to bring in new business; it leaves companies with nothing more than an educated guessing game.
Getting a Little Help
Sound technical? In theory measuring ROI sounds easy, but when it comes down to the nitty gritty, most companies need a little extra help crunching the data. Larger businesses can look to an in-house analytics expert – whether or not they use outside software to help follow numbers. Smaller companies can hire freelancers or participate in an ROI data package that helps show numbers and dates in an efficient manner. No option is better than another, it simply matters which method will be the easiest for each unique business set up.
When it comes to ROI, there are an unlimited amount of benefits to be had. Companies can find new followers, bring in more business, and spend their advertising money as efficiently as possible. And all by tracking the data that’s already available.
Ready to get started measuring ROI today? Contact us to find out more.