Usage

In today’s competitive business landscape, making informed decisions is crucial for success. One area that often poses challenges for businesses is determining the efficiency of their marketing spend. To address this, we are excited to introduce a powerful dashboard that can help companies answer critical questions such as:

• How efficient is our marketing spend?

• What’s the impact of cutting marketing spending?

• If I have to keep only one campaign up and running, which is it?

In this blog, we will explore the features of this dashboard and how it can accelerate your marketing performance.

I. Measuring Efficiency through ROI

1. The concept of ROI and its significance in advertising

Return on Investment (ROI) is a fundamental metric in advertising that measures the profitability of a campaign relative to its cost. ROI in advertising goes beyond mere financial gain; it provides a comprehensive view of how healthy resources are utilized to generate value.

Significance of ROI in Advertising:

• Performance Measurement: ROI can serve as a KPI, allowing marketers to assess the success of their campaigns quantitatively.

• Resource Allocation: By evaluating ROI, marketers can allocate budgets more effectively, directing resources toward channels and strategies that yield the highest returns.

• Strategic Decision-Making: ROI guides strategic decisions, helping marketers optimize campaigns, refine targeting, and enhance messaging for better outcomes.

• Demonstrating Value: ROI provides tangible evidence of the value generated by advertising efforts, which is essential for justifying expenditures to stakeholders.

2. Practical Advice for Interpreting ROI Numbers

Interpreting ROI numbers requires a nuanced understanding of industry benchmarks, context, and business goals. Here are some practical tips for interpreting ROI numbers:

1. Benchmarking: Compare your ROI against industry benchmarks to gauge your performance. For example, if your ROI falls below the industry standard, such as the $36 benchmark mentioned in the Email Marketing ROI Statistics, it indicates that there may be room for improvement. This can prompt you to evaluate your strategies and identify areas for optimization.

2. Long-Term Perspective: ROI calculations provide insights into short-term campaign performance. However, it’s crucial to consider the long-term impact of marketing efforts. If you consistently experience losses across all marketing channels, it may be necessary to re-evaluate your customer acquisition strategies. This could involve exploring alternative media or refining your targeting and messaging to improve results.

II. Optimizing Cost with Holistic Analysis

Looking into ROI alone is not enough to make a wise decision. A low ROI may result from high cost per conversion or low conversion rates, indicating the need to address specific areas of your marketing strategy. Therefore, Canvas’s unified marketing dashboards also provide insights into campaign performance metrics:

• Ads: Click-through rate, Conversion rate, Cost per action, Cost per click,…

• Email Marketing: Open rate. Click-through rate, Bounce rate, Unsubscribe rate, Spam rate, …

  By conducting a holistic analysis you can identify specific areas of improvement, optimize campaigns, and make informed decisions about:

  • What’s the impact of cutting Marketing spending?

  • If I have to keep only one campaign up & running across platforms, which is it?

  Let’s chat if you are eager to accelerate your marketing performance and maximize returns!

• Author
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Na Nguyen Thi

Lead Analytics Engineer at Joon Solutions Global

Data Analyst | Business Intelligence | BI Consultant

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