When it comes to marketing, all companies want the answer to one simple question: Is my marketing program producing a return on investment (ROI)? Or more simply put: Is this worth my money?
You need to have at least some level of understanding about how the numbers add up, both before and after you invest in any marketing campaign. Any form of advertising or marketing is only as good as the results that it produces, so companies need to know that their campaigns are producing the kind of results that are worth a continued investment.
There is one basic formula that is used to determine ROI for marketing, although many variations of it may apply depending upon your industry, product, how you measure profits and several other factors. Marketing ROI is usually calculated and expressed as a percentage using the following formula:
(Return – Investment) / Investment = ROI
In other words, the return produced by your marketing efforts minus how much you invested divided by how much you invested. For example, let’s say you invested $200 in a marketing campaign that produced a return of $1,000. Applying the formula from above:
(1,000 – 200) / 200 = 4
Since ROI is expressed as a percentage, you would multiply the final result by 100, giving you a total ROI of 400%. Obviously, this is would have been a wildly successful campaign, and you could increase your investment from that point.
However, it is important that you understand that it will not always be this simple to tell if your marketing efforts have produced the desired results. There are several factors which one must consider such as:
- How do you determine your return? Is it from total sales dollars, leads generated, gross profit, net profit or some other metric?
- How often should you measure your ROI? Some marketing campaigns are expected to produce results in one month; others produce results in one year. You need to know when to measure in order to get an accurate picture of ROI.
- Are you taking all costs into account with your investment or only direct dollars invested? You may also need to consider creative costs, printing costs, management time, technical costs and others.
In order to truly understand whether your marketing efforts are being successful, you have to make sure that you are measuring ROI properly. Make sure to measure each area of your marketing individually to know which are successful enough to increase your investments and which should be reduced. For instance, you may be having success with the investment in content marketing but not as much in radio commercials. Measure your ROI on each campaign individually to get a better understanding of the whole of your marketing efforts.
Want to learn more about how to increase your ROI? Contact us at Ora, our team of experts will be able to help.
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For the last few years, marketers have been stumbling over themselves in an attempt to get the attention of Millennials. This is understandable since there are now 2 billion Millennials around the world and have a global buying power of $2.45 trillion. The focus on this demographic will only grow in the future, as it is expected that their collective spending will outnumber all other demographics starting this year. The fact is, if you are selling anything other than hearing aids and Ensure, you need to be putting a lot of time, money and focus into marketing for Millennials.
Unfortunately for advertisers, marketing to Millennials is unlike any other demographic in history. For the most part, they reject everything about traditional advertising, and this is forcing companies to reassess everything they once believed about targeted marketing for a demographic. While Millennials are a diverse group who value individuality, there are some techniques that marketers have found to be successful with the group as a whole. In this article, we will share with you some of these techniques and how you can create an effective marketing campaign geared at this large, valuable pool of consumers.
In the last decade, the digital landscape has changed significantly. People are phasing out desktop and laptop computers and instead, are picking up their mobile phones and tablets. What’s more, the way people look at content has changed dramatically. Video marketing has stamped itself as the wave of now and the foreseeable future.
Companies across the globe have recognised its prominence on social media platforms and are seeking to capitalise. Large companies continue to invest in its future, coupled with advancements evolving on various social media channels to integrate new video options.
These videos are utilised in ways to build brand loyalty. Always looking for avenues to reach their target market, everyone from the Mom and Pop shop down the street to multi-million dollar corporations is realising the benefits that come from video advertising. They reach their customers and potential customers.
The simple exercise of creating a video and posting it is not the answer, however. Millions exist on social media. What can you do to “stand apart” from your competition? You want to create content that is engaging and will prompt your target market to action.
Use video as your marketing friend. It is a tool, one that can educate the viewers. Additionally, your videos should entertain, capture the viewer’s attention, and form a persuasive case for your brand.
The ideas that are formulated prior to the video production are important, this is common sense. How to create a video that will stand alone and stir the interest of your target market is what we are interested in.
A couple lands at the airport and is waiting on their luggage. They have already reserved a room and a rental car, so there is no need for anxiety in their lodging and transportation needs. Yet, they are hungry. So, what does the couple do?
They pull out their phones and Google search restaurants in the area. If you are a business owner or manager and are not paying attention to the SEO movement, then you are short changing yourself, employees, customers, and target market. Your bottom line will reflect this ignorance.
A constant vigilance is necessary in this search engine world. Your restaurant may be right under this couple’s nose, but if it does not show up quickly on their Google search, chances are good they will spend their money elsewhere.
Social media is a platform that marketing executives have come to love. The reasons are self-evident. Do you have a teenage son or daughter? Where do they spend an inordinate amount of time? Instagram and Facebook. Cruising through YouTube videos. Wait! Bet you know a number of grown adults who do as well, possibly even yourself.
One of the ways that savvy business owners and managers are attracting new customers is running contests on social media. Yet, it is not only attracting new customers as it is strengthening relationships with existing ones. Let’s take a look at some tips on how to run a successful contest on social media platforms.