The first step to increasing your Return on Investment (ROI) and Return on Ad Spend (ROAS) is to ensure you are tracking all meaningful interactions between your business and your customers.
Understand that although ROI and ROAS are related, they are not the same thing. ROAS determines whether your marketing is profitable and ROI determines if your business model or strategy is profitable.
There are several ways to increase your profit generated by ads, relative to the cost of said ads (ROI = profits-costs x 100 / costs). Here’s a brief look at three of our suggestions.
ROAS measures gross revenue generated for every dollar spent on advertising. This metric gauges the effectiveness of an online advertising campaign (ROAS = revenue from ad campaign/cost of an ad campaign).
Increase Conversion Rates
Provide relevant and useful website content to ensure consumers are engaged. The longer they remain on a page and the more you give them the information they are seeking, the more likely they’ll be persuaded to make a purchase. Provide graphics and hints, perhaps use instructions and a list of features. Reviews from satisfied customers are always a plus.
Cut Costs
It’s common when preparing to run a digital marketing campaign that there may be other costs indirectly associated. If these fees are recurring, then your first step is to audit these additional costs. What seemed like a good idea at launch may not provide any value. Examine all costs associated with your business model, and eliminate unproductive keywords to trim advertising costs.
Improve Traffic Quality
It makes sense that if you improve your quality of visitors, your ROI will increase. General keywords can bring in a lot of traffic, but it will be a lot of top-of-funnel traffic, not leading to conversions. Focus on electronics-related long-tail keywords that will bring in quality traffic and increase conversions, leading to a better ROI. Also, examine any underperforming keywords and adjust daily budgets as necessary.
Better Landing Pages
Provide consumers with a landing page that is relevant to their search and you’re more likely to keep them on page, decreasing bounce rate and increasing the possibility they’ll convert. It’s vital to give people the information they’re searching for.
Optimize for Mobile Devices
It’s an absolute must to recognize that consumers are using their mobile devices more than ever to make purchases online – especially in the consumer electronics industry. Businesses need to create a comfortable, responsive experience for shoppers across all devices.
Ongoing PPC Bidding Adjustment
For e-commerce businesses with a large inventory, consider switching to automated bidding that targets a certain ROAS. The system will use historical data to adjust bids as needed.
Blogging from the Dashboard
On the dashboard, you have everything you need to manage your blog in one place. You can create new posts, assign categories, adjust SEO and more.
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