The Different Ways You Can Measure the ROI of Different Marketing Strategies
Business,
How can you measure the return on investment (ROI) of different marketing strategies?
- Simple ROI
- Campaign attributable ROI
- Brand awareness
Each creative agency in the Philippines has its own marketing strategies as well as ways of measuring whether or not these strategies work. Given the wide range of possibilities for marketing strategies, it can be difficult to accurately measure the return or investment (ROI) of the strategy.
Another challenge is when you wish to measure ROI using factors like brand awareness, which cannot be measured as easily as sales. Nonetheless, measuring marketing ROI is essential in ensuring that your strategies are working and that the money spent on marketing is worth it. Here are some simple ways you can measure the ROI of various marketing strategies.
Simple ROI
Return on investment (ROI) is defined as the ratio between net profit or sales growth and cost of investment and is normally measured in percentage. The easiest way to calculate marketing ROI is to use the following formula:
Sales Growth – Marketing Cost / Marketing Cost
With this, you will easily be able to evaluate the efficiency of your marketing investment and gauge how effective your marketing campaign was in increasing sales. While this is the simplest method of calculating ROI, one disadvantage is that
Campaign Attributable ROI
In order to more accurately measure marketing ROI, it is also important to compare the data across several months. Comparing the sales of the business before the launch of the marketing campaign to the sales after the launch will give a more accurate measure of ROI.
You can also have a more accurate computation by factoring in the existing trend in sales growth, which can be measured by the monthly sales from the past year. When calculating for campaign attributable ROI, simply lessen the average organic sales growth from the difference between sales growth and marketing cost, then divide by the marketing cost.
Brand Awareness
Besides using mathematical formulas to measure ROI, another way is to find the effect of the marketing strategy on brand awareness. Brand awareness refers to the extent to which consumers recognize distinctive qualities, such as the logo or image, of a particular business or company. If one of the goals of your marketing campaign was to increase awareness of your business and products, then methods like surveys, website traffic, and social media reach can greatly help you in measuring the success of your marketing strategies.
One simple way to measure brand awareness is to conduct surveys, whether physical or online, asking questions regarding how familiar respondents are with your business or with a specific marketing campaign. This will give you gauge as to how many people know about and recall your brand. It would also be helpful to ask respondents how they know your business or how they’ve seen your marketing campaign. For instance, if you used both billboards and digital posters in your campaign, then knowing how many saw and remembered each will give you insight on which medium reaches more people. The downside to this method, however, is that it can be difficult to get a large number of people to answer your survey.
Another measure of brand awareness is website traffic, which is determined by the amount of data sent and received by visitors to a website, or how many visitors a website has. Website traffic can be measured with the help of Google Analytics, a web analytics service that gives insight into how users find and use a website. With Google Analytics, you will be able to track the number of people who type your URL, how many bookmarked your website, or how many accessed your site using a link in an email or offline document.
Nowadays, every creative agency in the Philippines makes use of digital marketing and many marketing campaigns can now be found online. If your marketing strategy involves the use of social media, then social media reach is an important factor in measuring the success of your campaign. Social media reach can be measured by the number of likes, shares, comments, mentions, and views your marketing campaign gains on your chosen social media platform. The term reach also includes the potential number of people who may see the campaign or page. While social media reach can be difficult to count manually, there are various applications available that can help you monitor the number of interactions social media users have with your campaign.
Key Takeaway
There are various ways of measuring the effectiveness and success of your marketing strategy and campaign. While the most common method is to use and calculate sales growth, brand awareness is also an effective measure of marketing ROI.
