How to optimize the ROI of your web advertising campaigns
How to maximize the ROI of your web advertising campaigns ?
Web advertising campaigns have the advantage of costing less than those conducted on traditional media. However, they are no less effective.
The ROI (return on investment) is a good indicator of the performance of your online advertising campaigns. It will therefore be useful to learn how to calculate and optimize it.
How to calculate the ROI of online advertising campaigns ?
Before we get to the solutions to optimize the ROI of web advertising campaigns, it is wise to look at the calculation of this indicator. This way, you will be able to evaluate the profitability of your marketing actions.
First of all, make sure your website tagging plan is well designed and integrated. This is the best way to identify and record the 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 ROI will require you to reconcile 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 ROI calculation does not include fixed costs and only takes into account variable expenses such as those induced by :
- Paid referencing ;
- Advertising on social networks;
- Content production;
- Etc.
A concrete example will help you better visualize the calculation. Let’s suppose that the annual cost of your web advertising campaigns 20,000 and you have 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. However, it should be noted 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 make sure you don’t miss any.
Optimizing the ROI of web advertising campaigns: how to get the most out of your campaigns’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 make the best use of it to increase the likelihood 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.
You need to set specific, measurable, acceptable, realistic and time-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 can measure your conversion rate.
Also consider targeting your advertising campaigns. In concrete terms, you will need 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 them.
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 arouse the interest of your prospects and customers and to maintain it. Publish it 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 about your company, your products or your services, they must be attractive, user-friendly, clear and readable. It is also necessary that your call to action buttons are strategically placed.
Don’t forget to exploit the various social networks (Facebook, Twitter, LinkedIn, etc.) to reach out to your friends and family.). These channels will allow you to get closer to your target audience. To do this, post regular updates on the website content likely to interest your personas by 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 a user clicks on your ad.
Affordable and making your ads accessible to a large audience, Facebook Ads is an interesting alternative.
