Friday, December 30th, 2016 | 5 min read
In 2017, digital ad spend in the US will approach $80 billion. All that spend adds up to a mass of data for marketers to sift through at year’s end to evaluate and leverage for next year’s activities. With so much information to parse, it’s no wonder that many businesses struggle to understand the performance of their paid strategies well enough to improve their approach.
Nearly 50% of marketers feel that measuring ROI is the top challenge they face. If you’re in a similar bind and not sure how to get started, here are three tips for measuring the ROI of your paid strategy:
With great budgets come great responsibility – to reach the right customers. Generating an accurate measurement of your ad performance ROI doesn’t just mean tracking how many people you reach, but understanding the impact of marketing on your core audiences.
And beyond measuring past performance, analyzing your audience data can help empower you to discover new business and demographic segments to inform your future marketing strategy.
Start with the demographics. Identify who has been engaging with and purchasing from your brand, and whether the trends align with what you intended. Did you reach your target audience? Did you break into a new demographic? Is your reach with millennials wider? Once you know who your audience is, you have a clearer picture of what behaviors to expect.
Next, look for patterns in purchasing. Did a specific message resonate well with a certain region or demographic? What did your most active and high-value customers respond to?
With this information, pivot the budget of your paid strategy toward the groups most receptive to your message and build on the content that works the most. (Your customers will thank you – engagement is as much as 3x higher for content tailored to its audience).
To take it further, explore audiences similar to your most impactful customers. If you want to outperform your current strategy, you must push the boundaries of your usual target audience: don’t just continue to nurture returning customers; find ways to attract new ones.
Numbers don’t lie. Impact and engagement matters, but ROI – in terms of budget, spend, and revenue – tells a much more straightforward and in-depth story.
Your data will show where your strategy fell short, allowing you to assess the success of campaigns and content, but also gauge efficiency versus waste internally and across teams (such as time, CPA, etc.)
Ask: how are teams managing paid spend? Does communication happen in real-time? Are teams disjointed internally? Once you have a 360-degree view of the hurdles you face, you can overcome them more easily.
And to improve performance in the future, examine whether there were poorly performing (or even very strong) campaigns that went unnoticed. Better tracking of ad campaign performance helps ensure you are reaching the right audience, with the right message, on the right platform.
Find weaknesses and turn them into opportunities to do better. This will help drive the high ROI you’re aiming for.
Social moves at a rapid pace, and it’s crucial for advertisers to keep up. It’s as important to reach the right audience as it is to reach them quickly. Engaging content that finds the right people at the right time translates to more conversions and an impact on your business’ bottom line. But, in the blink of an eye, you could lose the opportunity to go viral or reach a potential customer.
Think about how your organization builds and segments target audiences, and how many long-winded or unnecessary steps are involved. Are you able to keep up with the pace when serving social ads?
Chances are that your process doesn’t allow for dynamic, real time processes like audience segmentation (tools like Sprinklr Audience can make this currently manual process possible & pain-free). But, when it comes to paid advertising, you (literally) can’t afford to miss a beat.
Good ad content is a major part of your customer experience. Your customers are constantly demanding more and more relevant, personalized content. Ads that fall flat will fail to make an impact, leading to fruitless, squandered budget in your paid strategy.
Be ready to take on 2017. Maximize your investment by filling in any gaps in your current strategy and use the tips above to move full speed ahead toward serving your audience content that truly matters to them.