The Marketing Square receives many questions from clients, friends, and followers. Here are the latest, most interesting questions:
What’s a Good Advertising ROI?
Question: What is a good advertising ROI (Return On Investment)?
Answer: A good advertising ROI is between 25% and 50% above the amount of money invested in marketing. The basic principle for calculating ROI is net income divided by the total cost of the investment times 100.
A Return On Investment is driven by advertising strategy. Every advertising campaign begins with strategy and is decided by The Marketing Square with client input.
What Is Advertising Strategy?
Question: What is advertising strategy?
Answer: Advertising (marketing) strategy combines goals, target, locations, budget, and tactics to reach the right audience in marketing.
Strategy determines what is activated in a marketing campaign and decides how ROI is achieved. Strategy decides the target, locations, and types of activation that are used to reach the audience to meet the goal. Strategy will vary by Goal and if the Goal changes, so does the Strategy.
ROI: Return On Investment
It may take someone years to understand advertising Strategy and ROI.
Six To 20 Times Return On Investment
Since 2010, Marketing Square clients receive six to 20 times their return monthly on the amount invested. This varies greatly because our clients invest different amounts of money into their marketing based on the size of their business and the urgency and need for more revenue.
Yes, it’s like a math problem. So we’ll use a math formula to demonstrate.
ROI is determined by an agreed upon Goal (B) established by the client who needs B (Goal) to happen by using C (Tactics) based on A (Strategy), but driven by D (Budget).
A = Strategy. A STRATEGY is constant and carefully determined by knowing who, what, where, and how a goal may be achieved.
B = Goal. A GOAL is singular and drives the consistency of strategy because you can’t do it all…you have to choose one thing and do it well. Your focus on a GOAL will more specifically determine ROI.
C = Tactics. A TACTIC is the marketing action(s) used in a campaign. There are many marketing options from websites to grassroots marketing, but they’ll be reined in and decided by D (BUDGET).
D = Budget. Costs will vary and are going to determine C (Tactics) and E (ROI).
E = ROI. Return On Investment is decided by D+C+B÷A=E
A (Strategy) drives the B (Goal) and the C (Tactics) is decided by D (Budget) the return on which is ROI which should be at least 25%, but more like 50% — and ROI should increase over time if the strategy is right.
How Do You Choose A Strategy?
Before a client commits to a budget there will still need to be a VIABLE, agreed-upon strategy to reach the goal. Some tactics may be ineffective for the target or may cost too much to be efficient for the client.
Finding the Return on Investment in a program will vary by the expectations driven by the strategy.
Confused? Plan. Strategize. Learn and read about your audience, competition, and tactics. Be sure that someone on the marketing team has done a lot of research before sitting down and demanding an ROI number that’s just floating around in your mind. There needs to be a reason for ROI. Costs can be mitigated by the right strategy. The more specific and careful the strategy, the higher the ROI.
What Are the Top Search Engines in the World?
Question: What are the Top Search Engines in the World?
Answer: Here’s a list. There’s no such thing as search engines across all borders. While the U.S. focuses on Google, and yes, many other countries use it, but access is limited in some countries and therefore not always as widespread as in the U.S.
• US: Google, Bing, Yahoo, Ask, AOL
• China: Baidu, Sogou
• India: Rediff
• Russia: Rambler, Yandex
• Europe: Ansearch, Sesam, Yandex
• Japan: Goo
• Africa: SAPO
