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7 Tips To Improve Online Advertising ROI

7 tips to improve online advertising ROI
(Last Updated On: April 24, 2016)

We all know that online advertising has become a huge industry. Google Adwords alone, earned 117.6 billion in an year, according to wishpound. With more and more brands shifting towards online marketing, its more then important to get aware of different tips and strategies to get the maximum out of it. If you are still thinking and have not yet started an online digital marketing campaign for yourself or your brand then you are doing wrong.

So What You Will Learn In This Article?

  • Importance of ROI (Return on Investment)
  • Concept of Online ROI.
  • Using CPM, CPC and CPA for ROI
  • What is Good Advertising ROI?
  • Finding out which products are perfect to promote?
  • How Tools can help you in measuring your online advertising strategies?
  • Why Timing Schedules are Important For Your Business?
  • Why you need to spy up your competitors and how this can help your business in long run?

Whenever a business start online advertising, you’ll eye the results and the targets you want to achieve off of your online advertising campaign. It’s obvious. In fact, if you start knowing and understanding the idea of improving online advertising ROI since the beginning of the campaign, we could end up finding so many facts, figures, and statistics that could help us design a better advertising campaign. Few months ago, I wrote an article on 5 Ways to Convert Visitors Into Paying Customers and it got great attention, you know why? Because Majority of People are still trying to understand how this digital marketing works.

When you’re thinking of business and promotion, you’ll find nothing more valuable than results.

Results are figured out if a business is lucrative and holds out the market, or maybe it’s not, and finally ends up breaking the bank and shutting the business off.

Common advertising models are steadily the typical advertising for some sectors and for that reason, search engine marketing technique is a massive value when it comes to boosting your business’s return on investment (ROI).

Following this idea, let’s look at a few of the ways you can use to improve your advertising ROI, but first let me clear your concepts of ROI.

The Concept of Online ROI?

Your time and money a part of ROI is a formula of all soft, hard and indirect costs for the advertising campaign.

  • A hard cost is the advertising costs since it is precisely quantifiable and identifiable.
  • A soft cost is your labor if it’s performed internally because it is harder to monitor the 100% labor of a project by a single person who has various other tasks and jobs. Soft cost is very important to consider, but labor is often skipped from the calculation.
  • An Indirect cost is something which you do not notice at the time, but these expenses tend to happen, such as tools you need, electricity, laptop and other things which typically goes un-noticed.

The revenue of ROI can be calculated in different ways that depend upon investments made by the business. The businesses get new clients once they carry several quantifiable measures:

  1. The completion of transactions
  2. Visit a store (For retailers)
  3. Increase website traffic
  4. Click and view of the website ads
  5. Newsletter, event alerts, and subscriptions
  6. Generate leads for the new business

ROI return on investment

There are three measures to calculate the ROI:

  1. Ad impressions (Cost per thousand)
  2. CPC (Cost per click)
  3. CPA (Cost per acquisition)

All these three analytics are trackable and measurable. Therefore, the results can be studied, and the advertising campaign can be tweaked if needed.

The particular formula of ROI is:

ROI = (Earn from Investment – Cost of Investment) / Cost of Investment  x 100.

Using CPM, CPC and CPA for ROI

If a business roll-outs an advertising campaign on the internet, it purchases a specific number of ad impressions that show the resourceful things.

You can measure the impressions in blocks of 1000.

For instance, If you have 100,000 impressions that cost for $1000, has a $10 of CPM. In a simple formula, you can calculate it;

$1000 (cost) divided by 100 (blocks of impressions)

CPC (cost per click) is the second measurement. If you have an advertising campaign with 100,000 impressions that cost you $1000 contains 100 clicks. Here the CPC is $10 but if you have another campaign with $1000 cost contains 500 clicks, the CPC here will be $2. In sum up the last one campaign of CPC $2 has better ROI.

The next and most essential measurement is getting a customer in one of the different ways explained above. The case study below makes clear the way it works.

Case Study

case study

As a case in point, let’s suppose a site needs to advertise itself. The website features several revenue channels — its very own adverts from clients or 3rd party sources plus some transactional alternatives just like an e-commerce app.

The website keeps running an advertising campaign of contextual adverts priced at $1,000 on a single or more of the main search engines like google. If the average cost of per click is 50 cents, it generates the leads of 2000 visits, and those visitors complete the transaction and view the ads.

If the ROI is 20%, it indicates that the ad campaign generates $1200 in return of $1000 cost.

Here is an easy formula to calculate the percentage:

$1200 (revenue/return) – $1000 (cost or investment) divided by $1000 = 20%

There will be a no profit no loss (breakeven point) if the revenue or return is $1000, here the percentage of ROI is 0%. The genuine approach to monitoring the profit is related to examining the labor associated with configuring and handling the advertising campaign.

The return on investment appears only a bit more frustrating if the labor is appointed for an hour or so at $25, it can be turned out better if working on just a few high-volume keywords.

If the labor costs $25 an hour for total 20 hours, then the return will be worse.

At this stage, that advertising campaign has evidently lost revenue.

Good Advertising ROI

As a suggestion, if you sum up the whole story, Nielsen Analytic studies show that the average of 9% profit will take place if any business spends $100 and gets $109 in return while generating leads in just three months.

However, if we consider an online advertising ROI, there is a return of $218 if you spend $100, in other words, 118% but don’t take my words here if your business is generating more or less of this results, you don’t need to worry, what matters is your own satisfaction and further room for improvement. With Marketing, I have learned that success lie’s with getting ahead of your competitors and that is only possible when you keep on TESTING, TESTING and TESTING!

Let’s coming back, Elements figuring out results consist of

  • Time frame of 12 months
  • Target audience
  • Performance of web page
  • Durability or weak spots in the economic climate

What a thing to be considered for the Return on investment is doing the required changes to boost it to check out behaviour that can be repeated.

After understanding the calculation of your ROI following are the some additional tips to increase your ROI on your ad campaigns.


Weigh Up Which Products Are Deserving for Advertising

finding the perfect product

So now, if you pretend that you own a local company advertising computer systems and components, then it will be a wise decision to target your advertising and marketing buck on high gross profit stuff like top end PC tablets, notebooks, personal computers and ink-jet printers.

You certainly don’t prefer to rush adverts for low-profit equipment, for example, PC mouse pads, cheap USB, and so forth.

Upon having no shocks as to what are the main “bread winning” products, then it’s time for you to start a good in-depth market and keyword research to think of all the feasible adaptations for those products.

Be sure you deal with all changes prospects will use to find those products.

Always Use Tools

Getting visitors to your advertising campaign and growing plenty of clicks may not be difficult to do before you choose the best keywords. Evidently this can make search engines very happy. However, a substantial volume of visitors doesn’t essentially lead to supercharge your ROI.

The easiest method to calculate ROI is to set conversion tracking on the advertising campaign. Through the installation and using conversion tracking, you’ll find it easy to “weed out” keywords with large numbers of clicks, and therefore, saving you a big pile of dollars along the way.

Better yet, you can make investments and quote higher on keywords that have proven real bang for your buck, and as a result, increase your online business ROI figures.

This is legit. In the Digital Marketing Podcast interview, Tim Mathews explained the importance of using the tools like Unbounce and Optimizely to help analyze what works and what doesn’t. 

Use Call Tracking

call tracking

If you own a local company that doesn’t come with an e-commerce website, possibly it’s necessary to figure out how many inquiries your campaigns are generating for the business.

Take a look at few choices where we can use call tracking as a way to increase the ROI.

You can get different call tracking numbers if you are running a couple of campaigns with different types of keywords.

Depending on your campaign’s strength and its traffic you can easily determine that what keywords are more effective. This will benefit you to make a list of those potential keywords when it comes to getting inquiries and lead generation. Perfectly, that’s where keyword call tracking comes in hassle-free.

You can use keywords level call tracking for planning out your spending budget.

After making a list of potential keywords against which you are getting calls, you can set your own standards for keyword level call tracking. By doing this, you can assign each potential keyword to different call tracking numbers to know that which keyword is giving you more return on investment.

After getting information about the potential keywords assigned to call tracking numbers, you can easily set your campaigns accordingly. Optimize your campaigns and increase the bids to keywords that are actually bringing the number of calls and good results. Delete the keywords that are just costing your campaigns.

By working with call tracking efficiently, you can certainly boost your advertising performance and also your Return on investment.

Install the Google Analytics E-Commerce Tracking

web tracking

Tracking is very important to any marketing activity, without it, I can say all your marketing activities are actually useless. So the good idea is, install both tracking systems for your campaigns, Google analytics E-Commerce tracking and conversion tracking.

E-commerce tracking is one of an accurate way of tracking because it wouldn’t only confirm you exactly what keywords are converting but it surely provides you a product timeline and sales revenue you’re generating from actual gross sales.

You can create more ad groups for your specific product that is running well on campaigns and providing you a handsome ROI. Keep checking your e-commerce data to specify the product ad going well.

Concentrate on the Right Target Audience for Your Industry

target audience

As an example, if you are running your surfboard store in Miami Beach then it wouldn’t be easy to target all regions of the USA for you campaigns. That would be impossible to target the whole US if you have a small budget as well.

It will be a waste of your time if you are targeting the areas that are not close to your physical store. Since nobody bothers to travel the long distances after checking your ad on the internet. So it is advisable that you must target your neighborhood first. In contrast, you need to establish an online e-commerce store if you want the whole US easily access to.

Consider your spending budget. Plan it out on a daily basis that what cost you’re going to invest and what profits you are gaining against it. Go for the areas you think have more potential that can give you handsome leads.

In cases like this, it will be perfect for you to focus on just the neighborhood seashores and towns near your store; so potential customers become mindful of the services you provide and make possible sales for your business.

Timing Schedules

timing is everything

Now more and more marketers are playing with psychology of people, its important to understand the right time when people are buying your products or services. Obviously, if you are selling office clothes for ladies, chances are very low that someone wakes up at 4am in the night and search about the clothes, so spending money in this hour doesn’t make a good deal.

I worked with a bank in U.K. and i learnt with analysis that the campaign doesn’t work good at all on weekends, however it doesn’t mean that every campaign doesn’t work well there. I work with some brands who multiple their budgets on weekends and reduce it on weekdays. So this is something you need to test, evaluate and then apply according to what works best for you.

Ensure You’re Doing Only the Best Adverts

leader best in marketing

As always, when i write an ad, i make sure there is not a better version of this ad available one and this is what makes my client happy. Soon after you’ve been leading an advertising campaign for a few months with conversion tracking hooked up, it’s quite possible that you already have a respectable amount of useful information to work with. 

As we already discussed, it’s best if you boost your advertising campaign depending on keywords that are ultimately giving a stable ROI.

There is, however, one thing the people overlook when it comes to refining a campaign and that is exactly taking care of your group ads.

In case, you have already got enough information, you can go deep into each ad group from your advertising campaign and have a look at their effectiveness on their own.

The following you’ll be able to notice which advert has larger amounts of conversion rates, however, don’t fall into that trap when you also need to check out your ad’s rate of conversions.

  • Here it might be recommended that you stop your first ad and let your second one with a better rate of conversion run because it has proven to be far better that may help you improve your ROI.
  • Let’s assume your first advertisement that has been displayed on 60% of the time and it has a rate of conversion of 2.4%. You may realize that this is decent if your second advertisement that has been displayed for 40% and carries a 5.6% rate of conversion.

Use Boosted Site-links to Strengthen the Ads and ROI

While using new improved campaigns, you can have more choices and attributes to enhance the appearance of your ads.

To make your ad stand out of the competition, you can add a couple of more description lines in enhanced sitelinks that will speak for your product.

Sitelinks help buyers to grasp better fully your web page. By using unique Sitelinks attribute can improve the benefit of the ads which helps you accelerate your ROI.

I also noticed one thing that with site-links, your ads look more authoritative and real, so it helps in gaining more trust of the user.

Try Using a Re-marketing Campaign

re-marketing campaigns

Remarketing can be a good help to improve your Google AdWords, Facebook Ads and other online advertising campaigns as well as your overall Revenue.

In my personal experience, after managing thousands of dollars campaigns and heading online digital marketing strategies for various companies, I can conclude that majority of the user’s don’t buy your product immediately after knowing about you, they want to have a relation first with you, or a recommendation or a little more convincing. Re-marketing plays a vital role here in doing that.

Fundamentally, re-marketing runs by using a code on every web page, after which you can “legally stalking” those who have previously viewed your website.

For instance, if a potential customer wants to buy something from your e-commerce store or website, but all of sudden he needs to head out for an urgent piece of work. Most likely he will forget that he was making some purchases from your website. For that time, you lost the opportunity, but later on, you can run your remarketing campaigns for that customer. By doing this, you will be able to convert him for sure because he has already shown his interest in buying your products.

Using remarketing, you can customize your advertisements to pursue individuals who left behind the shopping cart. This can significantly increase your ROI because those are competent leads and the advertisements will be approaching the people who previously showed enough involvement in your product.

If you are looking for a case study that can further help you understand the topic, do checkout my Adwords Case Study where i was able to multiply my client’s revenue using some simple strategies.

Spying On Competitors

spying on competitors

Getting ahead of market and keep on analysing your competitors is very necessary. With the companies i work, one of our important task is to keep on analysing the competitor activities, what is working for them, what things they are trying and how they are surviving in market. Not only it educates you on the possible potential in the market, but it also helps you in finding new ways to market your product and keep ahead of them.

In Online Advertising Industry, things works differently as compared to offline and it is literally impossible to manually keep an eye on each and every competitor of your’s. SEMRush plays a vital role for me, not only it helps me in detecting all of competitor activities, but it also has a great keyword research tool, backlink analysis, site auditing tool (a great help in correcting errors from your site) and a lot more. I have written a complete SEMRush Review in case if you want to know more about it.



If you’re managing an advertising campaign with a proper startup and tracking alternatives installed, it’s necessary to check out your campaign’s information to ensure you’re using it to your best benefit.

Keep in mind that Google AdWords, Facebook Ads, Bing & Linkedin Ads is a pretty obvious advertising podium where one can figure out not just how much he is paying for advertising, but most significantly, how much he is getting back when it comes to actual return on investment. By using a few of these suggestions you should be competent to improve your internet marketing ROI in a fairly short time.

A few slight adjustments can make a positive change when you boost your advertising campaign based on return on investment. Therefore, it’s a chance to hit deep into your advertising campaign data and take advantage of it to increase your business’ ROI figures.

In the end, I would like to further say that as with every marketing campaign, there is no satisfaction point, there is no settlement, the success lies with keep on testing and experimenting new things.

So how did you find the article? Did I Miss Something? Would you start analysing the online advertising ROI now?

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Ali Raza
An Internet Entrepreneur who converts visitors into customers; A Google & Microsoft Advertising Professional with years of experience in Internet Marketing, Social Media and Blogging.

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