Return on investment from your marketing activity
When executed well, marketing activities and campaigns increase return on investment by creating brand awareness and attracting consumers. Understanding the importance of return on investment (ROI) for evaluating your market activity helps you spend your budget more wisely and understand what works best for your business or products so you can even plan to increase the budget subsequently. For instance, spending £500 on google ads and tracking the leads over several weeks may indicate that the ads resulted in £15,000 of your revenue, thus signifying a good return on investment. Therefore, increasing the spend on google ads would possibly yield an even bigger revenue.
A high return on investment is primarily achieved by conducting sufficient market research prior to executing marketing activities. You must understand your market, competitors and who your target audience are including their demographics. In this way, you are guaranteed to try strategies that bring some return on investment from the amount you spent on your marketing, reducing unnecessary losses.
In principle, knowing how to reach your target audience is crucial for successful marketing. Depending on the age bracket, location and lifestyle, different methods of marketing and advertising work best for people from various backgrounds and lifestyles. Hence one of the reasons market research is so crucial.
The society has been greatly digitalised, however, traditional advertising methods such as billboards, fliers, print adverts still work better for a percentage of the population. Although, this depends on your products or services and your target audience. In relation to this,
great design and branding also play an essential part when rolling out new marketing campaigns, events and other activities. For example, numerous online brands have been able to secure great returns on investment by rolling out their campaigns and marketing processes in strategic ways, such as using influencers for beauty products or health and lifestyle related products. Most successful brands are built on a unique identity, consisting of creative and innovative marketing processes, values and brand language which facilitate return on investment and in turn also result in securing ROI from gaining brand loyalty.
Thorough market research, understanding your market and your brand, and knowing your competitors are great ways to increase return on investment from marketing activities. Executing successful marketing is a step by step process, analysis of the external and environment of a company is a beneficial starting point.
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