3 Ways Agencies Should Measure Marketing ROI
Marketing is crucial for promoting and expanding businesses, including agencies. Measuring the return on investment is critical in marketing. That is because ROI in marketing measures the robust performance of marketing campaigns, both online and offline, which can influence the marketing spend, strategy, and more. One can calculate ROI with the marketing ROI formula: (Return – Investment)/ Investment.
What is ROI in marketing?
Return on investment in marketing is the return you get from investing in certain marketing campaigns. When you calculate ROI for marketing, you attribute revenue growth and profit to marketing tactics and their impact. By calculating the ROI, you can see how your marketing campaigns contribute to your business’s growth. Here, we share 3 ways in which agencies should measure marketing ROI.
- Tracking Social Media Marketing
Tracking visitors via social media to conversion can be daunting. Agencies use Google Analytics to see which social networks drive the most traffic and conversion using the social reports. But if you are trying to distinguish whether it was a lead from a recent post on Instagram or a link in an Instagram story, it will be more of a challenge. Tracking calls from social media can be even trickier. At most, you have Instagram insights, which count the number of clicks on your call-to-action button. This still doesn’t give a complete picture, like whether the click into the CTA button results in a revenue-generating lead.
With call tracking software, agencies can use different phone numbers for your client’s social media efforts. When a client calls a particular number, it shows exactly where the lead found the phone number, whether it’s in a social media profile, ad, or post. With these kinds of call insights, it is easy for small businesses to invest in the right social media efforts.
- Tracking Pay-Per-Click (PPC)
For small businesses that invest in PPC, knowing which ads get the most clicks is important to understand. They need to understand which ad campaigns and keywords lead to most phone calls or form submissions on the website. Google Analytics can track certain results from Google ads and other PPC campaigns. One can determine which ads generate the most clicks and even the most conversions into forms submissions and calls.
Track conversion keyword combinations!
Successful agencies demonstrate results in the form of keywords, landing page combinations, and ad copy that drives the most qualified leads, and can help small businesses to make the most of their PPC budget.
- Tracking Search Engine Optimization (SEO)
Almost all businesses know the value of incorporating SEO into each aspect of a marketing plan, from the website and content to online ads. Research has shown that search engines drive more than 60% of web traffic to websites in most industries, with Google bringing in eight times more traffic than all social media networks combined. This makes sense considering that Google has over 90% of the global search engine market share.
Measure SEO Strategy Outcome
There are numerous ways to track the results of SEO strategies. One can begin with SEO tools that monitor changes in keyword rankings, inbound links, and overall website authority score. These help offer insights into how well the SEO efforts are increasing the website visibility in search for the top targeted keywords.
Small businesses that use Google Analytics with conversions set up can also determine whether the organic search is driving traffic to their website that converts.
A successful digital marketing strategy goes beyond simply connecting with an agency to design your website and curate social media content. For everyone involved, the overall goal must be in realizing a higher return on the digital marketing investment, which begins by establishing a clear path on how to get there. At LRF Enterprises, we help you create a strategy and deliver the digital marketing ROI you need.
Proving ROI is all about drawing clear connections between marketing efforts and the business’s sale efforts. The more you can do that, the more you will be able to rely on long-term marketing relationships and sustain the revenue streams.
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