Advertising isn't easy, but the businesses that get a successful advertising campaign in place can grow their business to as large as they want! So what is the difference between businesses that have success in advertising and those businesses that spend money but don't see a positive return on their dollars spent?
One word, tracking.
Tracking is the single most powerful aspect of any advertising campaign. Why? With tracking you are not guessing at what your business should do to find success. Let me give you an example.
Your business starts advertising to find new customers. You try Facebook ads, billboards, radio, and some direct mail. You spend a total of $10,000 in advertising and within a month see an increase of $15,000 in business! Without tracking you ASSUME that if you continue doing the same advertising you will get the same results. In actuality only one or two of these platforms brought a positive return, the rest waisted your hard earn money!
So, what can you do to make sure you are tracking all the advertising? We are going to go through multiple different advertising platforms, tools you can use to track your efforts, and what you should be focused on to ensure you get a return on your advertising!
The reason digital advertising is the strongest advertising platform for any business is the vast ability to track your efforts. Digital advertising allows you to track exactly how many potential customers see your ad, how many customers click or show interest in your ad, where that customers goes on your website, what they click on, and when they actually make a purchase or contact your business. This is so powerful because you will be able to determine your exact cost per customer and then enhance your process by seeing what worked well and what didn't work. Here are some tools that will help you track your online efforts
- Facebook Pixel - Click here to read more! P.S. We help companies instal their Facebook pixel and set up their tracking for FREE connect with us here
- Google Analytics - Learn how to set yours up here.
- Bitly - Create custom URLs for each advertising campaign online
- UTM Parameters - add these to your links to track exactly where your customers are coming from. Learn more here.
- Thoughtmetric - This amazing new tracking system is designed for ecommerce and gives you a full spectrum look at your traffic.
- Individual Platform Tracking - all online platforms have their own source of tracking like LinkedIn and Twitter. Make sure whatever online platform you advertise with you use their tracking system. This will not only help you keep track, but it will also allow your advertising to enhance over time.
Radio & TV Advertising
Radio and TV advertising is harder to quantify because you never really know how many people hear or see your ad, furthermore tracking customers that take action on these ads are difficult as well! Here are some recommendations to track if your radio and TV ads are being successful
- Call Tracking - companies like Callrail and many others will help you track from what advertisment your calls are coming from.
- Coupons - Direct coupon codes that you can put inside your POS is the best way to track radio and TV ads. WARNING - make sure you use a different coupon code for each platform to ensure you are tracking your success.
- Events - We have seen the most success with TV and Radio by promoting events. The only way to track this success is having your customers fill out a form when they come in or having a passcode to get into the event supplied by the radio or TV.
Print advertising such as direct mail, newspaper, magazines and more are great forms of advertising for certain businesses in a certain location. You only have one chance to find success with print ads, because once they are printed there is no taking back that advertisement. So, here is what we recommend to track your efforts with print ads
- Call Tracking - Like radio you need to make sure you have a sperate call tracking number for your print ads. These ads are expensive, make sure to track your return
- Coupons - Discounts or incentives are not only a strong call to action but a great way to track your printed advertisment. Valpak is the king of printed coupons, study their OHIO (Offer, Headline, Info, Other) direct mail formula
- Unique URL or Landing Pages - each print campaign should push people to specific landing page that reiterates the offer and allows the customer to easily purchase a product or contact a business. P.S. combining print advertising with digital tracking will help you close the most interested customers!
What You Should Be Tracking
okay now we know the different tools available to keep track of your advertising dollars let's discuss what you should be looking for in these numbers.
- Reach - How many individual customers actually see your ad
- Impressions - How many times the same customer sees your ad. If your impressions are to high and you are not seeing results it means you are annoying your customers with the same advertisement they are not interested in
- CPM ( Cost Per 1,000 People Reached ) - This is a great number to understand your cost to scale your advertisement. Once you know how much 1,000 people are to reach you will know how much advertising dollars you need to reach 1,000,000 people.
- Engagement Rate - This can be measured by social media engagement, likes, comments, and shares, calls from an ad, clicks from an ad, and any other action taken from your customer after seeing your advertisement. To get an engagement rate all you need to do is take your engagement number/reach x 100. An average engagement rate is 1%-3%
- Results - The overall results either phone calls, leads, purchases, or any other action that is the ned goal of your advertisement
- Cost Per Customer Acquisition - This one can be tricky if you are running a multi layered advertising system. You want to add your total cost to get a customer to purchase. Example, if you own a restaurant and you run ads to your online order page and then retarget those customers that don't purchase you need to take the cost of both campaigns to get your cost for that customer. We recommend you run ads to get 100 customers and take the average cost of those customers to know your number to scale. If you are a contractor this is not your cost per lead, this is your cost per signed contract. If you pay $30 a lead but you only close one out of every 5 leads your cost per customer acquisition is $150.
- ROAS ( Return On Ad Spend ) - This is the overall purchases value / total cost for advertising . If you spend $150 in ads and get $1,900 in online sales your ROAS is 12.97%. Meaning, for every $1 spent on ads you will get $12.97 back. P.S. These are actual results from one of our ads
First, set up your tracking, then attack your ads. If you don't have your tracking set up you will never know how to improve and adjust to find the most success from your dollars spent!
We help businesses everyday set up their tracking systems for FREE! We believe this is a necessary part of any business and we want to make sure you are getting the most from your hard earned money!
In closing, advertising works for EVERY business when done correctly. Make sure you track your money spent, understand what you should be looking for in your analytics, and focus on taking the best performing ads and improving them to reduce your cost per customer acquisition month over month!
Now go out there and grow your business!