Have you implemented advertising recently? If so, you’re probably wondering whether or not it’s reeling in new customers and increasing sales. Measuring a return on investment (ROI) after implementing your advertisements will discover whether or not you’re accomplishing your marketing goals. If you’re not sure how to measure ROI, don’t stress! We report ROI to our clients frequently, so we’re well versed in the subject. Keep reading to learn more about how you can measure the ROI of your advertising efforts.
The traditional method of measuring ROI is the following simple formula: sales growth – marketing cost/marketing cost. This formula equals a percentage that you can attribute to your ROI. Every time you implement a new advertising campaign, you should calculate your ROI and compare past campaign success to determine the effectiveness of your most recent campaign.
As the advertising industry has changed over the years, so have marketing goals. Common company goals are no longer solely to increase sales. Many company goals have shifted to increasing positive brand perception and generating brand awareness. The formula we explained above doesn’t necessarily apply to these goals. Therefore, marketers have had to come up with creative ways to measure ROI for companies with unique advertising goals. For example, to measure whether your advertising efforts enhanced positive brand perception, you can send out a survey or conduct a focus group with members of your target audience before and after your campaign implementation. Your questions can focus on the perceptions of your brand to determine whether or not there was a change in consumer attitudes after the campaign.
To measure whether your campaign increased brand awareness, you can also use surveys or focus groups to ask participants whether or not they have heard of your brand or seen your brand imagery before and after campaign implementation. If you plan to use social media marketing, another simple method to measure brand awareness is by looking at your impressions before and after campaign implementation. Impressions are the number of times people saw your post. Therefore, you can measure impressions as a rough estimate of the number of people that have seen your branding.
Measuring your ROI can get tricky. If you find yourself in need of professional assistance, Grova Creative can help. Although our name emphasizes the creative aspect behind what we do, we are still well-versed in ROI. Call us today to receive reports on the performance of your advertising efforts.
Grova Creative is a woman, minority, and veteran-owned agency headquartered in Tallahassee, Florida, and works with clients all across the United States. If you are a business or organization seeking help with advertising, marketing, branding, messaging, marketing, strategy, website development, or other creative assets, visit grova.com.