How to evaluate your marketing investments
When working with digital marketing during these precarious times it’s useful to ask a few key questions to ensure the right investments are made. Every penny counts and with the right set-up and questions you can ask your team or agency to help you identify the following:
Are you investing in the right audience?
- What does the visitor do on the website after click-through – compare to cost of audience, conversion rate against purpose.
What investment in what channel is generating which result?
- Look at the quality of the target audience – what they do on the website after the initial click? And against conversion, exit/bounce rate.
- If you are able, measure against generated revenue from the visitors of the channel to determine the quality of the new customers from that channel.
What campaigns/ad groups cost the most?
- Compare against purpose and evaluate if the investment is worth it, based on the campaign purpose. (Eg reach campaigns should be evaluated against reach of desired target audience and interaction on your website – conversion driven campaigns against conversions generated)
What are your most successful ads – and why?
- What ads cost the most against the purpose of performance?
- Look at the quality of the audience through website interactions or conversions, match against targeting.
What customers cost the most to attract versus their lifetime value?
- Compare CLV against CPA on target audience and compare on channel level. This enables you to determine if you are investing in marketing towards the right customers.
Are your creative assets (such as ads) relevant to each target group?
- By evaluating the CTR from who you target versus who clicks, and then converts. (Depends on purpose of ad or course)
Take it a step further
- You can also ask your agency or team, to dive deeper depending on channel and help you identify on a more nitty gritty level such as keywords for search ads, time a day, devices, geography and so forth.