But don’t be in a hurry to compare yourself to other companies in the industry. What works for them doesn’t have to work for you. The main indicator is the increase in conversion compared to the previous period.
But it is difficult to judge the success of an advertising campaign as a whole by one conversion indicator. And about whether this conversion rate is good for you.
Let’s say that advertising brings you an average of $3,500 in revenue per new customer with a 50% profit margin. Launched five campaigns. How much is spent on them, shows the last column. A conversion is the submission of an application form on a landing page. Campaigns 3 and 4 have the lowest conversion rates.
ROI Return on investment
In fact, without additional indicators, it is impossible to know if this is a bad or normal conversion. Have these leads turned into completed deals? To establish this, you need to calculate the ROI and check the payback of the campaign.
ROMI are an indicator of return Germany Email List on investment, in the second case we are talking about investments in marketing. ROMI shows how every penny invested in advertising pays off.
A simplified calculation formula looks like this:
When we see ROI, we can judge. So campaign 4 generated the most expensive leads. For every dollar invested here, you get back $7.52. Although Campaign 1 had the best conversion rateat 15%.
Return on marketing investment
If we judged only by conversion, we would underestimate the campaign that actually brought in more money. As a result, we would turn it off or start allocating less budget. And this would have an immediate effect on profits.
Therefore, even a “good” conversion rate can be bad for a business if you can’t turn leads into sales. Ringostat end-to -end analytics will help you evaluate the effectiveness of advertising in terms of sales . It allows:
- evaluate the payback of advertising campaigns – you can see how any specific channel works, how much was spent on it and how it paid off;
- manage bids for contextual advertising directly from the end-to-end analytics report;
- see the number of closed deals and their amount.
