Almost all businesses, large or small, employ digital marketing. Several marketing researches have shown that, on average, almost all firms are spending more than half of their marketing budget on digital marketing.
The recent development in technology vis-a-vis the internet has proliferated a digital world where everyone is trying to buy and sell online. If you are a small business, it’s anyone’s guess that you are employing a digital marketing campaign in some form. The real question is if you can make the desired ROI on your digital marketing campaign.
In this blog, we will discuss how to minimise your cost of digital marketing, incorporate the latest trends and enhance your reach to the maximum possible customers. This discussion will lead you to tell in detail how to maximise your ROI on digital marketing campaigns.
Table of Contents
What is digital marketing?
Digital marketing, simply put, is advertising the product or service that you offer via a digital means, using the internet. The channels used in digital marketing are social media, podcasts, websites, youtube videos etc.
On the other hand, a digital marketing campaign is the execution of a digital marketing strategy. A strategy to increase sales or enhance brand awareness may be conducted, and for these specific purposes, an e-mail marketing or content marketing campaign may be conducted. These distinct and narrower digital marketing initiatives are called digital marketing campaigns.
Each marketing campaign may be differentiated or integrated with other campaigns depending on the purpose of that campaign.
Types of digital marketing
Before we start focusing on ways to improve your digital marketing campaign, it’s important that different types of promotional means that digital marketing offers are well understood. Here are some of the most popular digital marketing campaigns:
- SEO: It’s done to enhance your visibility on search engine research pages. With this, your website and content are optimised to improve your rankings on search engines.
- Social media marketing: As the name suggests, this form of marketing utilises social media like Instagram, Facebook etc., for marketing needs.
- Content marketing: It involves publishing informational and educational content free of cost with respect to products or services you offer to drive digital traffic back to your website.
- Pay-per-click ads: This type of marketing is about utilising the Google ads platform to drive non-organic internet traffic back to your website. It is basically purchasing internet traffic for money.
- E-mail marketing: One of the oldest forms of digital marketing, as the name may suggest means promoting your product or service via email.
The above is not an exhaustive list by any stretch of the imagination. There are numerous other digital marketing strategies/types like influencer marketing, affiliate marketing, search engine marketing etc.
Maximising ROI on digital marketing
The ROI is a financial measure which is often overlooked when it comes to digital marketing, as the costs of digital marketing are often meagre compared to traditional methods of marketing.
ROI can be easily measured by using a simple formula i.e. (A-B)/B
Here A = Sales growth post-marketing campaign( in monetary terms)
And B = Cost incurred on a respective marketing campaign. The goal of any digital marketing campaign is to maximise A and minimise B.
10 ways of enhancing ROI on the digital marketing campaign
1) Clearly defined Digital Marketing ROI goals
Sometimes a marketing campaign is started based on the success or failure of previous campaigns. This approach is inherently flawed and leads to the stagnation of business. Other times specialists are hired recklessly, e.g. a Google Ads specialist may be best at his job, but he may not have any previous experience in your industry.
Every marketing campaign must start by identifying the target audience, setting performance standards, defining appraisal mechanisms and accountability of the people involved. For example, if you are hiring a Google Ads specialist, it’s very easy to define monetary targets in real terms, your bidding price, conversion rates, price-per-click etc.
You should always have the final say based on your budget and strategy on every financial and business decision.
Small businesses don’t pay heed to small financial decisions, which leads to the outflow of critical cash flows. Every small financial decision must be planned and executed with precision. These small decisions are fundamental to the success of any digital marketing campaign.
2) Data analytics
What gets measured gets acted upon. One of the biggest advantages of digital marketing is that its impact is measurable in real-time. Don’t worry. You don’t have to develop sophisticated software to do that. Google Analytics is available to everyone free of cost.
Google Analytics is a silver bullet when it comes to understanding the behaviour of a website’s users. From tracking the conversions to telling the traffic sources, Google Analytics does everything for you. The only thing that you need to do is to make a Google Analytics account and analyse the data to enhance your ROI.
‘The custom report’ section allows you to track parameters of your choosing. You can measure whatever you want, and based on the results. This way, you can identify what is and is not working for you for a better ROI.
3) Hire specialists
A lot of small businesses try to save costs by doing everything on their own. While digital marketing is no rocket science, it is just that sometimes outsourcing is more financially prudent.
Any professional can write good content in his area of specialisation, but keyword research and SEO optimisation is a whole different ball game. Similarly, technically complex platforms like Google Ads are better outsourced to professionals.
Determining when you need a professional digital marketing agency and for which campaign can have a significant impact on ROI.
4) Omnichannel marketing
The objective of marketing should be targeting a potential customer in whichever state of buying cycle the customer may be in. For example, if a customer is reading your blog, he is more likely to buy your service vis-s-vis if he is merely visiting your website. But you must try to target the customer in both these states.
Firms tend to focus on one campaign at a time, which is not sustainable in the long term. Every marketing strategy must be integrated. Even offline marketing must be linked with digital marketing.
An integrated, seamless marketing strategy ensures customer retention and enhances the probability of making a sale.
5) Focus on new technology
As mentioned above, the digital realm is continuously expanding. If you are not exploring new means of marketing, you are more likely to get behind in the competition.
Blockchain technology, for example, is a game changer when it comes to securing customer data. Similarly, the metaverse may become a new domain for promoting your product and services.
Now, these technologies may be costly in the beginning, but in the long term, their benefits are likely to outweigh their costs. No new business can avoid ignoring these new technologies.
6) Optimisation for different digital techs
A website that doesn’t seamlessly work on different gadgets besides just desktops is bound to lose a lot of business. Mobile phones, tablets and now even wristwatches are being used by people to explore their interests.
Be it your website or your online store. They must be continuously updated and optimised for all kinds of gadgets. Extra costs may be incurred for enhancing the user interface as it will ensure higher traffic on the website.
7) Data visualisation
Data visualisation may seem trivial, but it is becoming indispensable to digital marketing campaign day by day. Social media has made consumers passive receivers. Very few people are likely to read through complex topics to get an idea about the subject.
You can make your content as simple as possible, but the best way of presenting content is by loading it with graphs, pictures, infographics, charts etc., pretty much anything that makes the content more visually appealing.
Data is the new oil. Indeed if presented in an analytical way, data can attract even those people who weren’t even looking for your product or service.
8) Monitor ROI metrics
In the 1st point, when you create ROI goals, the most important goal is to create ROI metrics that can be measured to determine the success of the digital campaign.
Now you must avoid vanity metrics. These are repugnant measurements that do not paint the true picture. For example, a high number of ‘link clicks’ may not be an appropriate measure to conclude success, whereas ‘the average time spent’ on the website is a more appropriate measure of a marketing campaign.
All the metrics should be set in a way that they help in gauging the real impact of a digital marketing campaign.
9) Forensic audit
There are no standard rates for digital marketing campaigns. If you have hired specialists for marketing, a forensic audit to gauge the efficacy of the marketing campaign is essential.
Similarly, It may be difficult to measure the performance of your digital marketing team in real-time. But as soon as the campaign draws a close, a forensic audit will ensure that the ROI presented by the digital marketing team is indeed the true figure.
Kaizen is a Japanese philosophy which advocates continuous small improvements to create a huge impact over time. Given that digital marketing is continuously evolving, every business too must continuously improve its digital marketing campaign.
Any firm that is not changing its marketing campaigns continuously is bound to lose a lot of business. Thus making kaizen, the chief marketing strategy is indispensable for maximising ROI.
Digital marketing is viable, cheaper, has global reach and can be measured in real-time. Unlike traditional marketing, where costs are incurred beforehand, in digital marketing, everything happens simultaneously.
If you recognise the above-mentioned advantages of digital marketing and still think your digital marketing campaigns often go sideways. Try incorporating the aforementioned ten points. You will find an assured improved ROI on your digital marketing campaign.
Furthermore, you can get in touch with our expert consultants to find an ideal digital marketing agency that can improve the ROI of your digital marketing campaigns tremendously.
We are Team EMB the voice behind this insightful blog.