Comparing different efforts and campaigns is the only way to learn which marketing activities are really worth re-doing and which ones you might not want to engage in in the future. Let´s look at how to assess and compare your online campaigns.
Where to start
In order to create an overview of the overall success and value of your online campaigns, you should start by gathering some numbers – basically ´costs and income´. How much did the various online campaign activities cost you? How many units did you sell as a direct result of your campaign, and what was the value of those sales?
While collecting this information, however, you should keep in mind that not all advertising is a matter of direct causality – it´s just not that simple. Sometimes (new) users will arrive at your site from one source, then leave and come back again. Therefore, it will be necessary to also look at ´assisting conversions´ and what particular role a given media channel has played in the total amount of conversions/sales.
Finally, do not forget to take into account non-commercial conversions, such as newsletter signups, social media shares etc.
What is good enough?
Answering this question will essentially be up to you. However, while assessing the value-for-money of your advertising efforts we recommend that you carefully consider both sales conversions as well as non-commercial conversions. If, from the beginning, you have assigned a value to such non-commercial conversions you will be able to better grasp the complete picture of the value generated by your campaigns. As such, you must ensure that your advertising is profitable for your brand in either sales or micro conversions within a specific time period.
If, in total, your online campaigns do not show an overall satisfactory ROAS (Return On Advertising Spending), most often, you can make the decision to terminate such under-performing campaigns almost immediately. If monitored properly, all the necessary information to ensure a clear ROAS and adjust efforts accordingly is readily available, at the same time allowing you to make immediately effective decisions and see the results; in a sense – this is the beauty of digital marketing!
If you are doing sales this question would usually be straightforward – which campaign generated the best ROI/ROAS? However, if you have set up a range of goals with defined values – including for non-commercial conversions – then it becomes a little trickier. Some campaigns might be better at addressing certain micro goals than others, and you need to carefully consider the value that these have for your business.
If you aspire to take your e-commerce business to the next level, tracking the check-out process is a recommended course of action as it will allow you to compare the progress of potential customers per campaign: – how far in the process did they go, and why?
If 2/3 of your site visitors from a certain campaign have added items to their ´basket´ you will have a better chance of inciting them to come back using re-targeting/re-marketing than if 9 of 10 had not even bothered to stay on the page or add anything to their baskets. This goes to show that you can´t evaluate results of your online campaigns – and the effectiveness of various campaigns – based on sales figures alone.
Don’t miss the article about buying online media reach and ads!