How to optimize the ROI of your web advertising campaigns
How to optimize the ROI of your web advertising campaigns ?
Web advertising campaigns have the advantage of costing less than those conducted on traditional media. But they are not less efficient.
The ROI (return on investment) is a good indicator of the performance of your online advertising campaigns. It is therefore useful to learn how to calculate and optimize it.
How to calculate the ROI of online advertising campaigns ?
Before tackling the solutions to optimize the ROI of web advertising campaigns, It is wise to look at the calculation of this indicator. In this way, you will be able to evaluate the profitability of your marketing actions.
First of all, make sure that the tagging plan of your website is well designed and integrated. This is the best way to identify and record data that will allow you to calculate the ROI of your campaigns.
Once this step is completed, if you are an e-merchant, the ROI of your advertising campaigns will be automatically calculated. If you work in the personal or business services sector, calculating the ROI by comparing the data recorded on your site with the sales made.
Here is the formula for calculating ROI:
ROI = [(revenue generated – cost of your online advertising campaigns) / cost of your online advertising campaigns] x 100.
You will get a percentage as a result. It should be noted that the calculation of the return on investment does not include the fixed costs and only takes into account the variable expenses such as those induced by :
- Paid search ;
- Advertising on social networks;
- Content production;
A concrete example will help you to better visualize the calculation. Let’s assume that the annual cost of your web advertising campaigns is 20 000 euros and you have generated an annual turnover of 50 000 euros. In this case, your ROI will be 150%. Indeed:
ROI = [(50 000 – 20 000) / 20 000] x 100
= [30 000 / 20 000] x 100
If the result is positive, your online advertising campaigns are profitable. Otherwise, they are counterproductive. It should be noted, however, that calculating the ROI of your advertising campaigns is not as simple as it seems.
Each campaign involves different variable costs that must be taken into account. Cost accounting can help you not to miss any.
Optimizing the ROI of web advertising campaigns: how to get the best results’take it into account ?
For optimize the ROI of web advertising campaigns, you must first determine exactly on which media the investment will be made. The goal is to use it in the best way to increase the probability of making it profitable. To do this, you must absolutely define clear objectives before deploying any campaign. The SMART method can be a great help.
It is a matter of setting specific, measurable, acceptable, realistic and temporally defined objectives.
Then, select KPIs (key performance indicators) in line with your objectives. For example, if you want to increase your conversions, you will have to pay particular attention to the level of sales. Thanks to this indicator, you will be able to measure your conversion rate.
Also remember to target your advertising campaigns. In concrete terms, you will have to deploy one for each audience group you want to reach. Indeed, there are undoubtedly different types of needs and preferences within your audience.
Tools such as CRM can help you determine this.
The implementation of a good content marketing strategy is another way to optimize the ROI of web advertising campaigns. The creation of qualitative and high value-added content is essential to generate and maintain the interest of your prospects and customers. Broadcast regularly on your company’s website.
Also make sure to continuously update your content.
On the other hand, it is wise to optimize your landing pages. Welcoming your customers as well as prospects looking for information on your company, your products or your services, these campaigns must be attractive, user-friendly, clear and readable. You also need to have your call to action buttons strategically placed there.
Don’t forget to use the different social networks (Facebook, Twitter, LinkedIn, etc.).). These channels will allow you to get closer to your target audience. To do so, post regularly content that might interest your personas using a language that corresponds to them.
Finally, invest in Google Ads. You will be able to streamline your advertising costs with this paid search tool. You will be able to define the amount of your expenses per month, per day and per ad, and there is no minimum amount imposed.
Moreover, you only pay if someone clicks on your ad. Affordable and making your ads accessible to a large audience, Facebook Ads is an interesting alternative.