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What is the best way to measure the effectiveness of a digital marketing campaign?

Whether we are talking about email blasts, ad campaigns, social media, or any other form of digital marketing for a business, the question that agencies will always be asked is: “How much did this cost and what was our return?”

To answer that question, we need to decide which marketing metrics we should use … and when.

And... we also need to make sure we aren't comparing apples to oranges.

Today, we will take a closer look at two metrics, ‘Return On Ad Spend’ (ROAS) and ‘Return On Investment’ (ROI), by weighing the pros and cons of each when it comes to measuring the effectiveness of a digital marketing campaign.

Let's begin with the definitions of each:

ROAS: The revenue that a company/advertiser makes based on the advertising of the product or service they are promoting. This can also be viewed as the amount of gross revenue generated per dollar spent on an advertising campaign and can measure how well a campaign performed in terms of revenue generated vs. cost.

(Revenue from Campaign / Cost of Campaign) = ROAS

ROI: A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost. When it comes to digital marketing, ROI measures the profits generated relative to the cost and how the advertising campaign contributed to the bottom line.

(Gains - Costs) / Costs = ROI

Okay, now, let's weigh the pros & cons of using Return On Ad Spend (ROAS). Let’s begin with how ROAS is calculated and a few examples:

Formula: (Revenue from Campaign / Cost of Campaign) = ROAS

ROAS is generally calculated in its entirety, by channel, or by campaign; however, it can also be used to calculate individual ads or even specific keywords.

ROAS for Campaign A
A business spends $10,000 on an online advertising campaign (A). During that time, the campaign results $50,000 of revenue. The ROAS is a ratio of 5:1 (500%) as 50,000 divided by 10,000 = 5.

In other words, each $1 spent on this advertising campaign results in $5 of revenue.

ROAS for Campaign B
A business spends $10,000 on an online advertising campaign (A). During that time, the campaign results $20,000 of revenue. The ROAS is a ratio of 2:1 (200%) as 20,000 divided by 10,000 = 2.

In other words, each $1 spent on this advertising campaign results in $2 of revenue.

Obviously, based on the above examples (and note that we use A and B to represent A/B testing of your campaigns), you will get the best ROAS by spending your marketing dollars on Campaign A. However, it’s important to note that determining the ROAS of one campaign will not give you enough statistical data to accurately predict future results.


- At the most basic level, ROAS can help determine if a campaign or marketing channel is able to generate revenue.

- If a company is able to effectively measure their ROAS of each campaign, it can help them make informed decisions on how to spend their ad dollars more efficiently and effectively.


- Revenue does not equal profit. If your cost of goods and delivery exceed the revenue generated, your net result is a loss.

- The ROAS may not include the “true cost” of running an advertising campaign, such as: fees associated with vendors for setting up the campaign, expenses for in-house personnel such as salary or other expenses, etc. Unless all of the costs that go into the campaign are included in the equation, the ROAS results cannot be considered reliable.

- ROAS does not factor in discounts, cancellations, and returns.

- As you scale up your marketing efforts, your ROAS will likely decrease. In other words, a $1,000,000 spend will not necessarily generate the same ROAS that you can generate at the $100,000 level. When you reach the level where your ROAS are decreasing, you may be losing money.

ROAS Conclusion

Using ROAS to measure the efficiency of your digital marketing campaigns is a good starting point and can give you a baseline for performance; however, since it does not address the bottom line, the ROAS model can result in unchecked spending without understanding whether or not each additional dollar spent is adding to a company’s bottom line.

Next, let's take a look at some of the pros & cons of using Return On Investment (ROI) to measure the results. Let’s begin with how ROI is calculated:

Formula: (Gains - Costs) / Costs = ROI

It is important to track and define your online conversion goals and to assign monetary values to each before calculating the ROI of your digital marketing campaigns.


- ROI allows you to measure the impact of one channel on another, such as a display ad’s impact on search.

- A focus on ROI measures the incrementality of each additional dollar of media spend on an organization’s bottom line.


- ROI is much more difficult to measure than ROAS.

- ROI can be vastly over or underestimated if you set your goals incorrectly. For example, a visit to your website’s homepage should not be assigned a value unless a visitor performs an action, such as subscribing to your mailing list.

ROI Conclusion

Today’s consumers may see multiple ads and content across various devices and multiple channels before making a purchase or becoming a subscriber. ROI measures the impact of one channel on another and how much each dollar spent will impact the bottom line, putting the focus on improving business performance, rather than just advertising performance.

Finally, let's compare the conclusions we reached above to determine which is the best way to measure the effectiveness of a digital marketing campaign.


Using ROAS to measure the efficiency of your digital marketing campaigns is a good starting point and can give you a baseline for performance; however, since it does not address the bottom line, the ROAS model can result in unchecked spending without understanding whether or not each additional dollar spent is adding to a company’s bottom line.


Today’s consumers may see multiple ads and content across various devices and multiple channels before making a purchase or becoming a subscriber. ROI measures the impact of one channel on another and how much each dollar spent will impact the bottom line, putting the focus on improving business performance, rather than just advertising performance.

ROAS vs. ROI Conclusion

ROAS is an advertising-focused metric whereas ROI is a business-focused metric. Ideally, both metrics should be used to measure the effectiveness of a digital marketing campaign; however, if you have to choose one over the other, measure ROI.

Since 2002 BeyondROI® has proudly served over 1,000 companies, large and small, across virtually every industry. We help provide vision, strategic guidance, and solutions aimed at allowing businesses to focus on what made them successful in the first place. We have the resources and expertise to provide the solutions in all the practice areas a company requires to successfully compete, control costs, and grow. We're here to answer questions and solve problems. Contact us today ( or call 800.498.4764.


Further Reading:
“How Digital Marketers Can Get Better Results With Less Capital” via +TechCrunch

#digitalmarketing #ROI #ROAS #marketing #advertising #BeyondROI

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Are you using your time wisely? How can you use it better?

If you ask anyone the one thing they want the most, above anything else, they will probably say "more time".

More time to relax.
More time with the kids.
More time with our family.
More time to vacation.
More time on the weekends.
More time to work on our hobbies.
More time to enjoy life.

Unfortunately, many will end up spending what little precious time they do have on other things. Things that are not on the list above. Things such as chores, work, mindlessly scrolling Facebook, etc.

Of course, some of these things that we spend our time on are out of necessity ... but many are either out of boredom or because we are too stubborn to seek help.

Many entrepreneurs and small business owners fall into the latter category. Rather than outsourcing tasks that they do not need to do so they can focus on what they do need to do ... or so that they can use that time to spend with their families ... they insist upon going it alone.

Isn't it time that you regained some of your precious time? Let us help you get some of yours back.

Let's Talk:

#timemanagement #entrepreneur #smallbusiness #BeyondROI

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Are you wearing too many hats?

When you own a small business, it is understandable that you want everything "done right" and that usually means that you feel that you have to do it yourself.

At first, the amount of energy you seem to have is enviable.... and your competition seems to fall behind as you power through your days. You don't even feel fatigued, just excited about the progress you are making.

At the same time, your competitors are taking a more strategic approach. They are hiring. They are delegating. They are outsourcing. They are partnering with other businesses that can help them scale their business. They know that there is a long journey ahead.

You keep pushing yourself, working longer and longer hours to get all of your jobs done. You are on the verge of collapse and wonder how much longer you can keep it up. Eventually, you realize that you can't do it all yourself. That it really is not a sustainable solution after all.

Remember, the human body has its limits and the more hats you wear and the more responsibilities that you carry upon your shoulders, the harder it will be for you to keep going when it really matters.

In business, you can't take on every responsibility yourself. You need help. You need to learn how to outsource or delegate. You need to learn how to let go of some tasks in order to free you up to focus on what's most important.

That's where we can help. Pass a few hats over to us.

Let's Talk:

#business #delegating #b2b #smallbusiness #smb #BeyondROI

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What's the first thing you need to do when getting started on social media?

As you can tell, we only just recently began building our Google Plus channel as we have been busy putting our clients' needs first; however, we realize the importance of prioritizing our own needs as well, so we are making the time to "get 'er done" ... and really, Step One on social is ... you guessed it ... Building Your Audience. Since we are posting this here on Google Plus, we will focus on this platform in particular.

Here is how it is done:

1) Find a Niche Where You Can Provide Value

One of the best ways to build an audience is by providing valuable content. This could be by creating your own content, by curating other people's content, or preferably, a mix of the two. One of the great things about Google Plus is that there is less competition than on Facebook, so it is pretty easy to find a niche where you can stand out.

2) Understand the Platform

Before you begin creating or curating content, you do need to know what works best on a particular platform and what will attract your particular target audience. For example, here on Google Plus, long form content seems to be the preferred format. The content should be formatted so that it is easy to read, although the formatting options are fairly limited. Eye-catching images work great on all platforms; here on Google Plus, a text overlay works well... but we wouldn't recommend it on Facebook as it will hurt your reach if you decide to boost your posts. Your content should be organized into a handful of collections; and, each collection should focus on one "keyword group" or topic.

Figure out what the audience that you want to attract will want and what questions they want answers to. Only then can you begin to fill that need by sharing the content they want to consume.

3) Engagement is Key

Consistently deliver great content and engage with your audience to grow organically. You must BE PRESENT and "show up" to the party. It is not good enough to just schedule your content and skip the party. Now, we aren't saying you can't schedule your posts. You can. What we are saying is that you need to move your posts into collections, add people to your circles, respond to comments, get involved in a few communities, ask questions, etc.

4) Connect with Influencers

Seek out the influencers in your industry and begin building a relationship. Comment on their posts. Share some of their posts. Create content that they are likely to link to or share with their audience. We are not talking about "social media rockstars" - we are talking about people in your industry. For example, if you sell kitchen appliances, doesn't it make sense that you would want to attract the eye of a food blogger?

5) Build Trust

An audience that trusts you is much more likely to stay engaged, spread the word, and buy your products and services.

So how do you build trust? You share quality content, consistently, and you engage. Sure, it's okay to share promotional content occasionally; however, your main focus on social should be to provide value to your audience.

6) Measure Results, Rinse, Repeat

Anything worth doing is worth measuring! Measure follower growth, reach, likes, shares, mentions, comments, clicks, opt-ins, conversions, sentiment, sales, etc. Of course, depending upon your goals, some of these may be more important than others. Figure out what works, what doesn't work, and ways to improve.

We would love to help you build your audience here on Google Plus or another social platform. Let's talk:

#socialproof #contentmarketing #contentstrategy #socialmediamarketing #BeyondROI

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What do you think of when you hear the words 'optimized content'?

If you are like most, you probably think of search engine optimization (SEO); however, that is only a first step toward optimizing content.

Consider this scenario...

You sell small elephant statues and trinkets. You have the most perfectly search engine optimized website in the world. It ranks #1 for every single keyword even remotely related to elephant statues and trinkets. It gets boatloads of traffic.

Are you with me so far? Okay, good. Now, let's take a look at your online sales.

Wait? What? You haven't sold a single elephant statue or trinket??? How is that possible with all of that traffic?

Let's walk in your visitor's shoes for a moment.

The first thing you need to realize is that they don't necessarily trust you. Perhaps this is their first visit to your website or the first experience they have had with our brand.

They don't know you... and it's unlikely that they will make a purchase unless they have some trust that:

1) That you are who you say you are...
2) That you won't rip them off...
3) That you are selling a quality elephant trinket...
4) That they won't have any shipping problems...
5) That you will be responsive if they do have a problem...
6) That they can return the trinket if it is defective...

...and so on and so on.

Okay, so let's assume you have the trust thing in the bag. Let's talk about intent. Are you matching the users' intent?

In other words, are your visitors arriving on a product page when they are trying to find a blog post about creative ways to display their elephant trinkets? Are they landing on a blog post when they are trying to buy an elephant trinket? If they are, is there even a link to the purchase page from the blog post?

"Focus toward tactics that will play to Google’s more complex side: mapping queries to actions, intent research, and aligned content creation."
- Grant Simmons, Search Engine Watch (

"Failing to match the user’s intent means that no matter how polished and compelling your content may be, it’s worthless."
- Neil Patel, Marketing Land, (

Do you see where we are going with all of this?

There is SO MUCH MORE involved in optimizing content than simply getting the SEO right.

We would be happy to discuss it with you in person. Visit our website to get in touch:

#contentmarketing #optimization #strategy #b2b #BeyondROI  

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Why Should Visitors Return To Your Website?

If you think about the "Buyer's Journey", you will quickly understand the importance of return visits.

The First Stages: Awareness/Discovery Phase

Let's pretend that you are planning a wedding and are doing some research online. You aren't 100% sure of what you are looking for; however, you do have some ideas. You decide to start by looking at floral arrangements, so you Google "wedding florists". There are several results on the first few pages that look promising, some of which you recognize by brand and others that you do not.

Next Stages: Research/Consideration Phase

Now that you have a few options, you beginning visiting their websites. Some of the websites have lots of beautiful photos, tons of products to choose from, a Q&A that answers all of your questions, and a plethora of information, including articles about which flowers look the best in photos, which flowers are in season during your wedding date, tips on creating DIY centerpieces for your reception, etc. Some of the websites have mailing lists promising a discount off your first purchase for signing up. You sign up. You might also bookmark a few of those sites.

Other sites have little more to them than a bunch of products for sale. You do not bookmark these and are not likely to return.

You end up visiting the sites you bookmarked a few times over the coming weeks/months as you plan your wedding. Sometimes you are reminded to visit when you receive one of their emails.

Final Stages: Decision/Purchase Stage

When it comes time to order your flowers, which site do you think you are more likely to choose? One of the ones that you have visited several times, and from whom you are receiving emails ... or one of the ones you visited once?

The answer is obvious.

You need returning visitors. Provide ALL of the information that a visitor needs as they travel along their buyer's journey. This is how you turn visitors into repeat visitors into customers.

Let's discuss this more! Visit our website to get in touch:

#contentmarketing #optimization #strategy #b2b #BeyondROI 

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Teams Need Certain 'Enabling Conditions' to Thrive

"Teamwork is the secret to achieving uncommon results." - Ifeanyi Enoch Onuoha

The basics of team effectiveness were identified by J. Richard Hackman, a pioneer in the field of organizational behavior who began studying teams in the 1970s.

In more than 40 years of research, he uncovered a groundbreaking insight: What matters most to collaboration is not the personalities, attitudes, or behavioral styles of team members. Instead, what teams need to thrive are certain 'enabling conditions.'

This article on Harvard Business Review explores in greater detail these 'enabling conditions' and how to create a climate that helps diverse, dispersed, digital, dynamic teams—4-D teams—attain high performance.

Read More:

We would love to discuss how we could help your team! Let's work together!

#teams #teamwork #teambuilding #smb #b2b #BeyondROI

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The Ultimate Reddit Marketing Guide (

For those of you who don't know, Reddit is an online community made up of user-generated and curated content. It often has more than one million unique pageviews in a single day, and it ranks within the top 25 most visited websites in the world.

If you approach Reddit the right way, it can become a major source of targeted traffic for your website—and ultimately lead to massive conversions. But, that's a big if. Redditors are really good at spotting marketers, so you had better be prepared to provide some serious value to the Reddit community!

That advice above applies to all social networks, although business owners and marketers often tend to forget it over time, no matter how well-intentioned they were in the beginning. And, as a result, the early success they may have initially experienced on those networks eventually dwindles.

Remember, you should only share content on your social media channels if it will truly provide value to the community. In other words, don’t post dozens of links hoping a handful will resonate with other members. Be prudent.

Read More:

#marketing #reddit #traffic

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Ready to 'Go Viral' on Facebook? Here are some tips to increase the chances that it will happen: (

Do you want to reach millions of people with your brand or message? Then you should be posting videos on Facebook. But not just any old videos -- learn how to give yourself the best chance to go viral.

This article offers some pretty good advice ... and while there is no guarantee that following it will ensure that your video goes viral, we that it will definitely improve your chances.

Probably the best piece of advice is to create videos that can be watched without sound. Even if FB eventually turns on sound by default, you can expect that many users will mute them ... after all, you certainly wouldn't want to get caught scrolling through Facebook's feed while you are supposed to be working!

Read More:

#socialmedia #smm #facebook #videos #BeyondROI

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Do you want a leg up on your competitors? Here are 8 best practices when it comes to Google Plus for local businesses: (

We realize that G+ isn't the most popular social media platform; in fact, many would argue that it "died" a long time ago. We would argue that they are wrong, and many in the SEO world are finally starting to agree with us.

Google Plus is an important piece of an overall online marketing strategy and can impact where your local business shows up in the search results.

The first thing you should do when it comes to Google Plus is to commit to posting regular updates (posts) every 24-72 hours. Local businesses that post frequently, such as daily or at least several times per week, are much more likely to rank on searches than those that have few updates.

Here are seven more strategies that every local business should put into place:

Do you need help marketing your business online? Let's talk:

#socialmedia #googleplus #business #BeyondROI
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