ROI Analysis

Should you pay for traffic to better your ROI?

Have you been wondering what is the best method for getting the most out of your ROI? Business owners spend a lot of time thinking about how to get the best ROI and online marketing is all about calculating your investments versus returns. Let’s look at how to determine how to calculate this ROI and if you should pay for ads that drive traffic or that help convert visitors into customers.

The Numbers Game

ROI (Return on Investment) math seems more complicated than it really is. Some webmasters avoid the numbers and others hire someone to do the math for them. Let’s look at how those numbers add up.

Investment = $1,000

Revenue= $3,000

ROI = 2

For every dollar spent you gained two. This is a good ROI, though there’s much higher ROIs out there.

Creating Higher ROIs

If you have been seeing an good ROI based on your advertising efforts, it can be tempting to keep pushing the traffic creating advertisements. Bringing in more traffic means more sales, correct? Let’s say that you increase your advertising budget and more people are now visiting. Your ROI may rise due to traffic alone.

Now, perhaps you notice that a good percentage of the traffic is visiting, but instead of converting the visitors vanish into the great beyond. This is called your ‘bounce rate’. Here is where you’ll spend time creating an optimized landing page. Paying for an optimized page is designed to recapture those lost visitors. If the landing page recaptures just 10% of bounced visitors, your ROI will go up another notch.

Landing Pages or Traffic?

Here is where the conversation can get tricky with some. Many recommend focusing on either traffic or landing page optimization. By putting all of your investment in one or the other you are essentially cutting away half of your ROI.

Think of traffic and landing page optimization as two parts to a whole. By driving traffic you are creating a flow of potential customers, but without the best landing page(s) for that traffic, you’re going to lose many potential conversions. Essentially you need to invest in both, pay for traffic and landing pages to create the best outcome and ROI.

Ads and Landing Pages – How Many?
You will need an ad, landing page, and retargeting campaign for every ‘ask’ of your business. Are you asking people to buy a purse, try out a free trial, or sign up for your newsletter? Then those ‘asks’ will need their own campaign.

It may sound like overkill but think about this – businesses that have more landing pages have nearly 50% more traffic than businesses with only one (or a few) pages.

Optimizing those ads you have paid for is a waste of investments (time and money) when you do not optimize your pages. The same can be applied to investing in pages without investing in ads. Why waste time and money?

Be Consistent

Now that you’re on the right track with using landing pages and ads as a single tool instead of one versus the other – be consistent. Make sure that your traffic can be funneled in the right direction. Use the same language to promote the content on your pages as in the ads that brought in the traffic. Don’t change props or benefits between the two or your customers may get confused.

Never confuse your traffic, that’s how customers are lost and also how a marketing campaign can be ignored by Google. Use consistent, honest information and you’ll gain the trust of customers and Google.

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