Optimize your investment in digital advertising: Tips and tricks to scale your profits
How many times have you walked through your home, turning off lights left on by your partner or children, while thinking, "We're throwing money down the drain"? You're not alone; many of us have felt that frustration when we feel like we're wasting resources.
The same can happen with your advertising budget. According to data from a survey of digital marketing experts by Rakuten, on average, 26% of the budget is wasted on strategies and channels that don't deliver the desired results.
But we're not here to dwell on failures. Every advertising experience is valuable and teaches us what works and what doesn't. Each campaign, and each investment, provides information that we can use to optimize future strategies and increase our chances of success.
However, there's always room for improvement. There are actions you can take to make the most of your advertising budget and achieve astonishing results.
Conquer retail: how to maximize your advertising investments
Imagine this: your retail business is generating thousands of clicks on your ads. It's evident that they're capturing the audience's attention! But why aren't those clicks translating into sales? The answer may lie in your landing pages.
Landing pages are like the heart of your online business. They are the meeting point between your ads and your potential customers. If your ads are the shop windows attracting people to your store, landing pages are the store's interior.
When it comes to creating effective landing pages, there are certain key practices you should always keep in mind. Firstly, design the page with a clear purpose in mind: converting visitors into customers or leads. To achieve this, your page must be clear, concise, and prominently present the most relevant information, without the need for scrolling down. Additionally, ensure you include a strong and compelling call to action that stands out from the rest of the content.
Another crucial aspect is relevance. Ensure your landing page is closely related to the keywords or advertising campaign that directed visitors to your site. If the page doesn't meet users' expectations or isn't directly related to what you promised in your ads, you'll likely lose them before they have a chance to convert.
Last but not least, always conduct tests. Experiment with different versions of your page and analyze which one performs better. There's no magic formula for creating the perfect landing page, but by following these best practices, you'll be on the right path to success.
Increase ad impact: scale your budget for successful conversions
Who doesn't love success stories against all odds? Overcoming obstacles and triumphing with a tight budget is like those inspiring movies where the underestimated team reaches the top. While creativity is valuable, there are times when spending more is necessary to keep up, especially if your competitors are investing heavily in relevant keywords. However, it's not just about spending more; it's about doing it efficiently.
The first step is to determine how much you're willing to invest in advertising. This may vary depending on your business, but as a starting point, allocating around 10% of your total budget is a good option. From there, you can adjust this percentage based on the results you get.
Once you've set your budget, it's time to decide on the type of ads you want to use. There are different options, from pay-per-click (PPC) ads to visual ads (known as CPM). Each has its advantages and disadvantages, so it's essential to choose the one that best suits your business.
Once you've selected the ad type, it's time to plan your campaign. Define the message you want to convey and how you want to target your audience. Having a clear focus and a compelling call to action in your ads is crucial to motivate users to take action.
Remember that the power of intent-based audiences is invaluable. Use this tool to focus your ads on users who are more likely to be interested in your product or service.
Don't forget that the success of your ads lies in strategic planning and the ability to adapt as you obtain results!
As you increase your budget and expand your reach, you also need to broaden your keyword network. This will increase impressions and traffic, which are excellent figures to present to those you report to. However, it's not just about general figures; it's about their quality. This is where keyword relevance comes into play.
If there's no relevant connection between the search term and the message you're conveying, it's likely to result in lower click-through and conversion rates, thereby reducing your return on investment in advertising. It's as if you cast a fishing net, looking for highly sought-after "fish." And when you lift the net, the unwanted elements need to be discarded and returned to the sea of keywords.
Fortunately, there are many online tools that can help you with this, such as Ahrefs and SEMrush. These tools allow you to analyze relevant keywords for your business, discover trends, and obtain valuable information to improve your PPC advertising strategy.
Competitor analysis is a crucial part of any business's marketing strategy. By understanding your competitors, you can position yourself better to attract customers and outperform them in their own game.
The beauty of online advertising is that there's no place to hide. You can't simply enter your competitors' physical stores and ask how many customers they've had and what they bought. Unless you do it undercover. However, in the digital world, there are ways to obtain valuable information about your competitors.
Here are some key points to consider when conducting competitor analysis:
- Know your audience. Who are you trying to reach with your marketing strategy? What needs or desires do they have that you can fulfill? Knowing your target audience is the first step in understanding your competition.
- Do thorough research. Use all available resources to learn as much as you can about your competitors. Google them, read their website content, follow them on social media, and see what others are saying about them online.
- Identify their strengths and weaknesses. Once you have a good understanding of your competitors, you can start identifying their strengths and weaknesses. What are they doing well? What could they improve on? Use this information to your advantage in your own marketing strategy.
- Find your niche. When you know what your competitors are doing, you can position yourself better to find your niche in the market. What unique value can you offer that they can't? Focus on promoting your uniqueness to attract customers away from the competition.
- Keep an eye on them. Competitor analysis is not a one-time task; it should be an ongoing process so that you can stay aware of the latest changes in the market. Aim to remain flexible and be prepared to adjust your marketing strategy as needed.
Remember, it's not about copying your competitors but learning from them and finding your own path to advertising success.
What is considered a good return on investment for digital advertising?
When determining what is considered a good return on investment (ROI) for digital advertising, the answer isn't straightforward. It depends on your business's specific goals, the target audience you're reaching, and the advertising strategy you're implementing.
However, there are some general benchmarks that can serve as indicators to assess whether your digital advertising efforts are effective. For example, according to a study by AdEspresso, the average ROI for Facebook ads is 122%. This means that for every unit of currency invested in ads on this platform, you can expect a return of $1.22.
Of course, it's important to consider that these values may vary depending on the type of products or services you offer. If your business focuses on selling high-value items, your ROI may be lower compared to those marketing low-cost products. Likewise, if you are targeting a very specific audience, you may achieve a higher ROI compared to those targeting a broader audience.
So, how do you determine the appropriate ROI to aim for?
The key lies in conducting constant tests, analyses, and refinements, just as you do in other aspects of marketing. Examine previous campaigns that are similar to the ones you're planning and ask yourself the following questions: What was the main objective of the campaign? How much investment did you make? What were the results obtained? How does the ROI of this campaign compare to other marketing activities you have carried out?
As you execute more campaigns, you will gain a clearer vision of your average ROI and achievable goals based on your industry, strategy, and distribution channels.
Remember that the process of determining an optimal ROI involves experimenting with different approaches, analyzing the results obtained, and adjusting your strategy based on the gathered information. Every business is unique, so it's essential to adapt your digital advertising tactics to maximize ROI and effectively achieve your business objectives.
Boost your ROAS (Return on Advertising Spend)
If you're an experienced marketer, you're probably familiar with the term ROAS (Return on Advertising Spend). It's a key metric that allows you to evaluate the performance of your advertising campaigns. But what can you do to improve your ROAS and get the maximum value from your investments? Here are some effective strategies:
Explore new ad placements
Social media platforms offer multiple ad placement options. Take advantage of this diversity and try different strategic locations. For example, ads in the news feed usually perform better than other formats. Additionally, if your business focuses on e-commerce, don't hesitate to try ads in banners, landing pages, and pop-ups. Analyze the results of each option and optimize your strategy based on the data obtained.
Eliminate or reduce spending on underperforming campaigns
Not all advertising campaigns will generate the same results. It's essential to identify those that are not providing a sufficient return on investment and take action. Instead of continuing to invest resources in underperforming campaigns, redirect your budget and efforts toward those that are yielding positive results. Also, make sure to review and refine your keywords to optimize your targeting and reach a more relevant audience.
Utilize target ROAS in Google Ads
Google Ads offers a tool called Target ROAS (Return on Advertising Spend) that can be highly beneficial for improving your ROAS. This feature analyzes and predicts the potential conversion value every time a user performs a search related to your products or services. It then automatically adjusts your bids to maximize the return on investment. However, keep in mind that results may vary. To make the most of this feature, ensure that you are targeting only legitimate and high-quality buyers, avoiding invalid traffic.
Analyze and optimize external factors
Sometimes, a low ROAS may indicate problems outside of your advertising strategy. Before giving up, analyze other factors that could be influencing your results. Review your landing page and ensure it's optimized for a smooth user experience.
Also, consider whether your prices are suitable for your target market and if your calls to action are clear and persuasive. Through an exhaustive analysis and optimizing these external factors, you will be able to improve your ROAS and obtain better results in your advertising campaigns.
Remember that improving your ROAS requires patience, experimentation, and constant optimization. Don't get discouraged if you don't see immediate results. Keep trying new strategies, analyzing data, and adjusting your approach to achieve an optimal ROAS. Move forward and maximize your return on advertising spend!
How Tribal can empower your advertising strategies
Having a reliable financial solution to finance your advertising strategy has become essential today. Tribal not only offers tools to maintain operational liquidity but also becomes your strategic ally in empowering your advertising and digital marketing strategies.
With Tribal Pay, you can cover the expenses of your advertising campaigns and obtain discounts for timely payments to your suppliers. Additionally, you'll have the flexibility to make bulk payments, cover your digital marketing efforts, and other fixed costs.
Tribal's expense control platform allows you to visualize and centralize all your company's expenses in a single application, providing you with a clear and real-time view of your advertising investments.
Moreover, with Tribal Capital, you'll have access to working capital credit, allowing you to increase production levels and expand your digital marketing strategies without compromising your cash flow.