How to Calculate Return-On-Investment (ROI) for Marketing Campaign

Return on Investment is used to assess the returns or profitability of paid search and indeed all business investments which have tangible returns.

This calculation varies according to how accurately returns can be measured in a company. The general way of calculating ROI is:

ROI % = 100 * Return from investment (Net Profit) / cost of investment

For a paid search investment the formula is:

ROI % = 100 * ((PPC Revenue – (cost of goods sold + PPC fees )) / PPC fees

In paid search, the cost of good sold is not always known, so ROI is sometimes simply expressed as 100 * (PPC Revenue – PPC fees) / PPC fees.

A similar measure is Return on Advertising Spend (ROAS) which is calculated as Revenue/Fees.

In campaign A, ROI is positive based on PPC fees alone, but unprofitable when the margin and cost of goods sold is taken into account.

Advantages of Paid Search (PPC) Marketing

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1. Predictability: Traffic, rankings, returns and costs tend to more stable and more predictable than SEO. It is more immediately accountable, in terms of ROI, while SEO can take much longer to evaluate.

More straightforward to achieve high rankings – you simply have to bid more than your competitors, although Google also takes the Quality Score of your ad into account. SEO requires long-term, technically complex work on page optimization, site restucture and link-building, which can take months to implement and results to occur.

2. Speed: PPC listings appear much faster, usually in a few hours (or days if editor review is required).

3. Flexibility: Creative and bids can also be readily modified or turned-off for particular times. The results of SEO can take weeks or months to be achieved. Content modifications to existing pages for SEO are usually included within a few days. PPC budgets can also be reallocated to in line with changing marketing goals (eg: a bank can quickly switch paid-search budget from ‘loans’ to ‘savings’).

4. Automation: Bid management systems can help financial predictability through using rules to control bidding in line with your conversion rates to reach an appropriate cost per sale. However substantial manual intervention is required for the best results for different search ad networks.

5. Branding effect: Tests have shown that there is a branding effect with Pay Per Click, even if users do not click on the ad. This can be useful for the launch of products or major campaigns.

How Do We Gain ROI With The Search Engines?

What is Search Marketing?

Search Engine marketing goes under many names, Search engine Optimization (SEO), Pay Per Click (PPC), search engine advertising, the sponsored listings, paid for placement and more. This data show the market share of search engines worldwide from Apr 2017 to Apr 2018.

How Do We Gain Visibility With The Search Engines?

Using page speed in mobile search ranking

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People want to be able to find answers to their questions as fast as possible — studies show that people really care about the speed of a page. Although speed has been used in ranking for some time, that signal was focused on desktop searches. Today we’re announcing that starting in July 2018, page speed will be a ranking factor for mobile searches.

The “Speed Update,” as we’re calling it, will only affect pages that deliver the slowest experience to users and will only affect a small percentage of queries. It applies the same standard to all pages, regardless of the technology used to build the page. The intent of the search query is still a very strong signal, so a slow page may still rank highly if it has great, relevant content.

We encourage developers to think broadly about how performance affects a user’s experience of their page and to consider a variety of user experience metrics. Although there is no tool that directly indicates whether a page is affected by this new ranking factor, here are some resources that can be used to evaluate a page’s performance.

  • Chrome User Experience Report, a public dataset of key user experience metrics for popular destinations on the web, as experienced by Chrome users under real-world conditions
  • Lighthouse, an automated tool and a part of Chrome Developer Tools for auditing the quality (performance, accessibility, and more) of web pages
  • PageSpeed Insights, a tool that indicates how well a page performs on the Chrome UX Report and suggests performance optimizations

Reference: https://webmasters.googleblog.com/2018/01/using-page-speed-in-mobile-search.html

 

3 Strategies for Paid Search Marketing

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Search Engine Marketing (SEM)
The main strategies which will help give you a planned approach for paid search are…

1. Goal-Setting and Tracking Strategy:  Goal-setting and tracking fit together. There is little point in setting goals unless you track your results and there is little point in tracking if you don’t use the results to identify new goals and tactics to drive performance. So need to select the right tools and process for tracking to get the desired objectives.

2. Keyphrase Analysis And Selection Strategy: Keyphrase analysis and selection are core to success in SEM. Identifying relevant key
phrases for your marketplace is crucial starting point both to starting and refining both paid search and SEO.

So it is most important to identify keyphrases related to your products and services. There are various free and paid tools available for identifying keyphrases and evaluating their potential. But experts are required for the same.

3. Resourcing and Agency Strategy: As a part of a strategic review of your search marketing or entire digital marketing effectiveness it essential to ask whether you have the most cost-effective combination of resources to plan and execute your paid search marketing.

So, it is most important for resourcing your search engine marketing using different types of agencies and internal resources.

FineMinds India is a leading Paid Search Marketing company offers Google Adwords PPC services, Bing PPC, Facebook PPC & More. Hire PPC experts to get desired results.

What is Keyphrase Analysis ? and Why is It Important ?

keywords-planner

Keyphrase/keywords analysis and selection are core to success in SEM. Identifying relevant key phrases for your marketplace is crucial starting point both to starting and refining both paid search and SEO.

Detailed keyphrase analysis and selection enables you to…

1. Review possible phrases which will enable you to connect with potential customers as they search for products, content or experiences.

2. Select keyphrases which indicate intent on the part of your audience which helps qualify your audience and decide which phrases you should prioritize on.

3. Set goals for returns on SEM based on the number of relevant searches and the cost of achieving results.

4. Select SEM strategy for achieving results for each keyphrase – which combination of SEO, PPC Marketing, and affiliate marketing will work best?

5. Review progress against these goals.

What Do We Need From A Web Analytics Tool ?

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1. Reports on all keyphrases referred from search engines, i.e. it isn’t limited to 100 phrases.

2. Keyphrases are reported separately for different referring search engines, e.g. Google, Microsoft Live Search, Yahoo! and different country versions.

3. Keyphrases separated out into those from natural and paid listings.

4. Outcomes such as sale or registration can be determined for different phrases and for those generated from SEO or paid-search, i.e. tool should be able to report on bounce rate and conversion rate for different phrases.

5. Reports when the site is visited by different search robots and the pages they visit.

6. A spreadsheet or flat-file export of all search data (not limited to 100 phrases or based on a single report).

There are two main types of site-based web analytics tools. You will probably need both for super-effective SEM. Be sure you have at least one!

Server log-file based. The log file which is usually stored on the same server as the web server is added to every time a user downloads a piece of information, whether it is an image or page. This technique records robot visits.

Browser-based or tag-based . measurement system that records access to web pages every time a page is loaded into a user’s web browser through running a short script or program which is inserted into each web page. The key benefit of the browser-based approach is that potentially it is more accurate than server-based approaches since it is not subject to caching limitation. But this technique doesn’t record robot visits.