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ROAS vs. ROI (Part 4 of 4)

Over the past two weeks, we have be discussing Return On Ad Spend (ROAS) and Return On Investment (ROI) and weighing the pros and cons of each when it comes to measuring the effectiveness of a digital marketing campaign.

In our final post of this series, we will compare the conclusions we reached in our previous two posts to determine which is the best way to measure the effectiveness of a digital marketing campaign.

ROAS (http://gplnk.us/2jZTbQc)

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.

ROI (http://gplnk.us/2jZY9MZ)

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.

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 (http://gplnk.us/2kqeE23) or call 800.498.4764.

#digitalmarketing #ROI #ROAS #marketing #advertising #BeyondROI
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ROI: Pros & Cons (Part 3 of 4)

In our previous post (http://gplnk.us/2j6z5VE), we took a look at some of the pros & cons of using Return On Ad Spend (ROAS) to measure the effectiveness of a digital marketing campaign.

In this post, we will 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.

Pros

- 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.

Cons

- 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.

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.

In Part 4, we will compare ROAS vs. ROI to determine which is the best way to measure the effectiveness of a digital marketing campaign.

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 (http://gplnk.us/2kqeE23) or call 800.498.4764.

#digitalmarketing #ROI #ROAS #marketing #advertising #BeyondROI
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ROAS: Pros & Cons (Part 2 of 4)

In our previous post (http://gplnk.us/2j6IQmX), we provided definitions for Return On Ad Spend (ROAS) and Return On Investment (ROI) so that we could begin weighing the pros & cons of each when it comes to measuring the effectiveness of a digital marketing campaign.

In this post, we will 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.

Pros

- 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.

Cons

- 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.

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.

In Part 3, we will take a look at the pros & cons of using ROI to measure the effectiveness of a digital marketing campaign.

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 (http://gplnk.us/2kqeE23) or call 800.498.4764.

Further Reading:
“How Digital Marketers Can Get Better Results With Less Capital” http://gplnk.us/2j6D8RL via +Tech Crunch

#digitalmarketing #ROI #ROAS #marketing #advertising #BeyondROI
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What is the best way to measure the effectiveness of a digital marketing campaign? (Part 1 of 4)

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.

This week, 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.

In this 4 part series, we will cover:

- Definitions
- ROAS: Pros & Cons
- ROI: Pros & Cons
- ROAS vs. ROI

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

In Part 2 of this series, we will take a look at the pros & cons of using ROAS to measure the effectiveness of a digital marketing campaign.

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 (http://gplnk.us/2kqeE23) or call 800.498.4764.

Sources:
http://gplnk.us/2kqobGs
http://gplnk.us/2kqjSer

#digitalmarketing #ROI #ROAS #marketing #advertising #BeyondROI
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Let's talk about the 'Content Monster' in the room

If you have a website, blog, or social media channels, you have probably encountered the content monster ... you know, the one that has a constant need for more, more, and MORE! content.

We found a terrific article by Conrad Saam on +Search Engine Land about this topic that is definitely worth checking out (http://gplnk.co/2hiCPBq); in it, Conrad sums it up like this:

"The focus on content is grossly overblown. Content is very rarely the answer — especially in industries where many sites have too much of it already."

"I’m not sure there are any verticals where the push for more content is more pronounced than the hyper-competitive legal market. ... Law firms now have small teams of in-house content developers dribbling out prose that rarely sees an inbound visitor."

And within those statements lies the answer to our question of "How Much Should You Feed the Content Monster?"

If you are pumping out content that 'rarely sees an inbound visitor' then you are probably "feeding" the monster too much. If you are hiring small teams to 'dribble out prose' then you are probably not only feeding the monster too much, you are probably feeding him crap as well.

Yes, content monsters DO need content to survive; however, they can go much longer between feedings if their diet consists of high-quality content rather than low-quality, thin, spamming, clickbaity junk food.

What are you feeding your content monster?

Read Conrad's article (http://gplnk.co/2hiCPBq) and then give us a call (http://gplus.ly/2hxh6H9) and let's see if we can help you put your monster on a better diet.

#contentmarketing #contentstrategy #contentwriting #contentcreation #BeyondROI
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There is no such thing as a 'one-size-fits-all' approach to marketing

As this picture so eloquently explains, it's not going to work in today's global economy.

Our new global marketplace is now "characterized by faster communication, transportation, and financial flows, all of which are creating new marketing opportunities and challenges. Companies recognize that worldwide competition, international marketing trends, and Internet technologies must be considered when launching campaigns both domestically and internationally."

This means recognizing that you need to adjust your marketing mix to fit the local tastes and needs of your campaigns while maintaining a consistent brand image and product.

Oxford University Press defines global marketing as "marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities, and opportunities in order to meet global objectives."

Source: Boundless. “The Global Economy.” Boundless Marketing Boundless, 26 May. 2016. Retrieved from http://gplnk.us/2h7ZLRQ

Are you taking a one-size-fits-all approach to marketing?

Do you now understand why that will not work?

Let's talk: http://gplus.ly/2hxh6H9

#marketing #b2b #b2c #business #SMB #BeyondROI
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8 Tips To Fill Your Content Calendar

The beginning of a new year is often a time where businesses plan out their content creation and curation plan for the coming year. Creating a content calendar can help you maximize the time you spend on research and ensure that your content plan is in line with your business goals. It can also help you keep your sanity!

These tips can be used for all of your content campaigns, such as your blog, your social channels, and your email marketing efforts.

1) Our first tip is to evaluate what you did last year. Identify the content and campaigns that performed particularly well and then reuse, repurpose, or expand upon it for this year's campaigns.

2) Map out the holidays and seasonal opportunities that are relevant to your business and then work backward, filling in blog post titles and other ideas as placeholders in your calendar. For example, if you sell affordable men's watches, you may want to plan a blog post about the "Best Father's Day Gifts Under $250", promote it on social media, and send out email newsletters in the weeks leading up to Father's Day. Planning things out ensures that you don't miss opportunities and that you are well aware of when the campaigns should begin and end so that you get the maximum benefit.

3) Include your company milestones. Sharing milestones such as celebrating your company's anniversary provides you with some great content opportunities that make your company more relatable.

4) Include product launches. Create a buzz with teasers about a new product or service.

5) Include tradeshows and other industry events. Note the hashtag that the event is using so you can begin your campaign in advance and connect with others attending the event as well as to take advantage of it by "live-tweeting" during the event. If you are a local business, include local events that you might want to share or blog about.

6) Evaluate what your competitors did last year. This can help spark ideas and help you identify things you missed.

7) Fill in gaps with helpful information, articles, and tips for each stage of the "buyer's journey".

8) Finally, don't try to fill the entire calendar... it's okay to have some gaps. This allows you to be spontaneous and flexible. Each week or month, review your calendar and add some current news or events into the mix.

We would love to help you build your content calendar. Let's talk: http://gplnk.co/2hC22GV

#content #contentstrategy #contentmarketing #BeyondROI  
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Let's face it. We all crave attention. Especially brand pages on social platforms (like us on this one).

It takes time (and effort) to build an audience on a new platform. Unfortunately, many people and businesses get discouraged when it doesn't happen overnight, especially if they are putting in the effort to create and curate good content.

This article on +Copyblogger makes some great points about how to get people to actually read your content.

In addition to writing and creating good content, you need to also format it in a way that entices and compels your visitors to actually read it.

Even here on Google+ (and with fairly limited options for formatting), the format of your posts can make all the difference in whether or not someone will take the time to read it.

Worth a read: http://gplus.ly/2fqmCWE

#contentmarketing #contentwriting #marketing #BeyondROI  

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What sets someone apart and makes them a great leader?

How are they different from others and what can we emulate to become good leaders ourselves?

These are the questions that +Lolly Daskal answers on Inc. (http://gplnk.us/2gKxeS9). Here is her advice:

1. Make people feel valuable.
2. Make the time to connect.
3. Be honest and straightforward even when the news is bad.
4. Take the heat.
5. Share the credit.
6. Give praise, and do it often.
7. Delegate responsibility without micromanaging.
8. Celebrate skills, and appreciate talent.
9. Challenge the status quo, and don't settle for mediocrity.
10. Invest in your people, and make them feel important.
11. Encourage and inspire.
12. Build team spirit, and encourage inclusiveness.

... and wear red-striped socks!

Just kidding on that last one, although they are nice socks! In all seriousness, these are some very solid tips and could be a good starting point to help you improve your leadership qualities.

What do you think? Do you have what it takes to be a good leader? Can you think of other qualities that good leaders have?

#leadership #leadershipskills #business #BeyondROI  
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