Anjdeb Consulting

ROI Strategies and Advertising

Well! The most often used and sought after the term for performance measurement of any company is ROI i.e. the Return on Investment, which is commonly known as a measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments for any venture.

Studies reveal that a good advertising ROI is somewhere between 25% and 50% and above. Return on investment is strategically driven by advertising strategy. In making a business work we find that we are constantly explaining content marketing? Explaining the nitty-gritty and inner workings and ROI of content marketing to executives, bosses or clients can be difficult at times. But it’s necessary. It’s very obvious if you can’t reinforce your content efforts, how can you be successful? 

When we talk about content marketing the very obvious question that pops in our mind is Paid channel advertising and Content Marketing? Which one is better? 

This question rocks the mind of businesses all over. No rule indicates that you should not invest your money in paid channel advertising or vice versa.

Which ROI strategy works better depends mostly on the kind of business. Whether you are a B2B marketer or a B2C marketer you can generate leads using either paid advertising or content marketing, or both. Both these channels are as effective as can be.

Let’s analyse here for a B2B marketer relying on content marketing for their brand visibility and paid advertising for lead generation.

The bottom line is you need to create more useful and relevant content if you need to wish to see a visible increase in the ROI.

But, it’s important to understand how each of these content marketing strategies works and what content marketing ROI you can expect. 

Of course, I can’t give you exact figures because different small businesses will achieve different results. In the early days of content strategy, thin content was enough to engage prospects, because there wasn’t much good content at the time and there weren’t many social media channels to worry about.

Let’s sum up the Strategies and the most essential those 5 steps that work to increase your ROI.

Return on investment, or ROI, is a ratio of your company’s net profit compared to your financial investment in the business. ROI isn’t the same as profit from the sale of goods or services. It’s the financial return you receive from spending money

It’s quite simple, depending upon the type of return you look for on your business investment. There are various ways to improve ROI and seek for more returns, which include increased profits, reduced expenses or intangible benefits like improved operating efficiencies or an improved brand.

Defining your goals and setting measurable benchmarks definitely will help you to increase your payback and subsequently improve your company. Business needs to be known and for that advertising is a must tool nearly every advertising campaign begins with strategy and is decided with clients. The strategy combines goals, budget and tactics to reach the target. 

The five-step process requires careful planning and methodical operation.

1. Evaluating Company Costs

As a business owner, one should scrutinize the cost and create a detailed financial map of where your company spends its finances. This is an integral part of developing a strategy to increase ROI. To assess and complete this a close outlook at the financial numbers for your company’s annual operating budget as well as total revenue for the same period is a must. 

A clear assessment of each department revenue and the operational budget clearly will show how much these areas are costing for the company.

A clear picture arises after a calculative assessment which then gives an idea to focus on areas that are losing money before you address profitable sections of your business.

2. Trimming Business Departments

Choosing whether to eliminate or restructure business departments is a matter of deciding how much money your business wants to spend. If the company needs an immediate boost in cash flow then the best way is eliminating underperforming allows to devote more money to the profitable departments and thus, in turn, increases the ROI.

Looking the other way round channelling extra cash towards training employees in underperforming departments can increase efficiency and performance. This can boost profitability for the business as a whole because other departments can better focus on assignments without needing to compensate for humdrum performances.

3. Infuse for Compound Interest

When a company achieves a higher profit return than its costs, Lo!! A good sign, it has more money to invest in other business ventures. 

Investing your company’s profits wisely gives your business more horizon to increase growth and overall value even if revenue slows down. According to Pick “The Brain”, a self-help website, investing profits early in the life of your company allows for a greater chance to achieve compounding interest. This will happen only when the interest on your initial investment amount begins to accrue interest itself. 

Nothing better than Compound interest allows your business to achieve higher ROI levels much sooner than expected wait to invest till you think your venture is successful in its own right.

4. The Social Media Boost

Nothing better than the World Wide Web. The Internet provides your business with an extremely powerful means of communicating with millions of potential customers at one go, through retail and social networking channels. 

Before you can distribute content through any social network channel, whether through free or paid channels, the content needs to be optimized for the right audience.

The keywords that you’re targeting must be prominent in the content, especially blog content – not in a way that raises Google’s red flag, but in a natural way that proves your content is relevant.

A great content marketing strategy primarily involves creating high-quality content and giving it away to connect with and nurture a loyal audience that will trust you and buy your product. This is the dream of every marketing team out there.

According to “Red Fly Ltd.”, a business marketing firm, investing cash to develop a social networking presence and a retail website that captures and retains customer attention can surely help your business increase ROI. 

With proper search engine optimization (SEO), your company’s website can attract the right type of customers who are looking to purchase your products or engage in business (prospective customers). Relevant website content increases your conversion rate the number of website hits that later turn into sales by encouraging customers to explore your website.

5. Targeted Investment Terms

Targeted and carefully planned investment terms set logical and finite dates for your business to keep money with certain companies or venture capital opportunities. This allows your business to withdraw its money at the right time and physically access its investment profits. Once assessed the company can decide to later invest the funds in a different sector of the market that may be performing better than previous companies or firms. 

Employing this well-analysed strategy within your own business allows your business to set firm dates for departments to begin showing positive ROI.

Leave a Comment

Your email address will not be published. Required fields are marked *