By Jackie Olson, Propel Marketing
Youíre thinking about running a paid search campaign to attract potential customers looking for your services in your area. Search engine marketing can be foreign or even scary. How do you know if you will receive a return on your advertising investment?
Luckily, you can settle these fears by following a few simple steps that will be sure to generate new business and help you identify a return on your ad spend.
Clearly identify and communicate your goals
What do you want to achieve from your advertising campaign? Would you like to generate new leads, drive traffic to your website, or promote a new service? Does seasonality impact your business, and if yes, how? Which of your services make the most profit? Make sure your goal is clear and concise.
Responsive design website and tracking phone numbers
It is imperative that your business has a solid, functional, and optimized responsive website. Your website will be the foundation of your digital marketing strategy, and when built correctly, will translate to leads and increased profits. Responsive websites adjust automatically to whichever size device your next potential customer is using, creating a user-friendly experience.
Purchase a tracking number to be used only with your search engine marketing campaign. This will allow you to track and listen to all calls generated from your efforts, shedding light on how well your campaign is actually working.
Now itís time to leverage your website as a lead generation tool. Focus on generating leads for your most popular services, or the services that make you the most profit. Target the audience that is most interested in your services in your area to reach only those most likely to buy.
Leveraging the knowledge of a digital marketing consultant can provide clarity in a jargon-filled advertising world, and help you determine how much to spend per month. (Pro tip: make sure the agency is Google Adwords Certified.)
Now that you have a concise idea of what services you want to market, and how much to spend per month, itís time to launch. Be aware, most search engine marketing campaigns take about two months to start generating the best results. During this time, there is constant optimization taking place depending on which keywords are converting and generating calls, as well as the best days and times during the day to display your ads. Over time, your campaign evolves using clear data and statistics to deliver the best results.
Calculating your return on ad spend is easy with a very simple formula. Take the revenue that resulted from your ads and subtract your overall costs. Then, just divide that number by your overall costs to get your return on ad spend.
In the resulting number, the amount over 100 percent is your percent profit.
A dentist had $1,100 a month to spend in search engine marketing to promote their teeth whitening service (a $500 minimum treatment). Six months later, the dentist reviewed his campaign and learned that his campaign generated 150 calls (leads), and of those calls they acquired 30 new patients.
Utilizing the formula above, the dentist generated $15,000 in revenue, and spent $6,600 in advertising. ($15,000 - $6,600) / $6,600 = 1.27 or a 27 percent profit on the teeth whitening campaign! Not to mention, teeth whitening is probably not the only treatment these new patients will return to the practice for.
In conclusion, search engine marketing is great, but knowing your results is rewarding. That reward can be achieved by understanding how to measure and calculate your results.
Propel Marketing is an online marketing company providing digital solutions to local small- and medium-sized businesses: www.propelmarketing.com.
Digital Media Marketing: Understand and maximize return on ad spend
By Jackie Olson, Propel Marketing