Whether you are launching a brand-new advertising campaign designed to capture a specific niche or just revising an outdated strategy, it’s important to focus on what drives ROI. This metric is used to measure the profitability of a campaign, its ROI – Return on Investment. In layman’s terms, this is the amount of money you took in minus the amount of money you spent. Essentially, it indicates the cost of production and the profit you made on your small affiliate marketing project.
The main goal is to earn more than a dollar for every dollar you spend during your advertising campaign. There is a lot of discussion about what is a “good” or even “passable” ROI, but that is a whole other topic for another day. Let us just say that every advertiser has their own expectations and every budget is different. Even the niches are different and different niches have different average ROIs.
In today’s post, we will look at what you can do to increase your ROI.
- Increase the price
This is a surefire way to increase your ROI almost immediately. Most advertisers consider this a last ditch effort, but if done correctly, it can be done at any point during the campaign lifecycle. The more exposure your product gets, the more valuable it becomes, making it easier to attract and retain new customers later on. Let us say your campaign was on a fairly steady growth path, then increasing the price by up to 50% seems like a good idea.
If your product is not in high demand, but you still need to increase the price to stay afloat, you need to increase the actual or perceived value of the product. This is an easy way to generate more sales and attract customers who would not normally consider buying your product.
- Always follow up
Failure to follow up has caused many businesses to go out of business. Make sure that you always keep your customer in the loop and that you consistently follow up. Even if you are happy with the number of sales and your ROI value is decent, there is still room for follow-up. You can build a strong relationship with the community and this is a great thing to do.
This is one of the most important things you can do to increase your ROI. It’s also important to understand that you should be constantly following up, through a variety of sources – email, social media, notifications, and so on.
- Split testing
Instead of raising the price or keeping an eye on existing customers who may end up buying more, you can also cut costs. One of the most efficient ways to cut costs is to split test your ads to see which versions have the best conversions. This method has virtually no downside, as it allows you to figure out which emails, landing pages, or pop-ups convert and which do not.
If you stick to split testing early on, you can significantly reduce your costs while finding the most lucrative offers. It’s a good idea to split test your offers to eventually increase your ROI. The less you spend, the more money you make in the long run – that’s a fact.
To save money, you should select a target audience that actually has the money to buy your products or services. That’s what targeting is all about. You do not want to waste your time with generic messages that apply to everyone. You want to find something specific that will appeal to your target audience. Sure, figuring out what your target audience is is a challenge in itself, but you can use social media and similar platforms to gain more visibility in this matter.
With more targeted ads, you can be sure that you are targeting the right customers and clients. In this way, you can reduce operating costs and increase your ROI. Another effective method that can help you save money!
There is not one method for increasing ROI that works for everyone. You should probably try them all and see which one works best for you. In any case, you should always monitor how well your ROI works and which campaign (or how much you are willing to pay) works better.
We advise you to try different methods, starting with the one that sounds the most logical. If that fails, you can try using any combination of the methods described above to achieve the desired result. We do not think there are that many campaigns that are simply doomed to fail. No matter how stupid, bland or inappropriate the advertising campaign may be, there is always room for improvement, and these improvements can mean a turning point in your business or at least a bit more profit.
Finally, we should add that there is no point in chasing absurdly high returns that you see advertised online. If the number does not look that impressive and does not cause you to brag online about how much money you have made, you can still do well. Or even more than fine. Set realistic goals and expectations, and you will be rewarded. If you join RollerAds, the rewards can be even greater, so join us and let us make money together!