Role of Google Digital Marketing in Maximizing ROI
Google helps you to increase your conversion rate and reduce spending by growing your customer base and increasing your performance efficiency. Return on investment (ROI) is critical to evaluate our profits from free product listing, advertisement, overall costs, revenue, manufacturing cost, etc. In order to maximize ROI, you need to track our conversions and increase it. You can keep a track of your conversions by using Google Analytics, It offers you insights on how to keep track of the number of clicks, and impressions for each product.
Why Return on investment (ROI) matters?
ROI is considered as the ratio of your total profit to your costs. It’s a measurement wherein you can summarize your spending costs, advertisement costs, cost per conversion, cost per action (CPA) as the cost of goods sold which will be subtracted from the total revenue, divided by the cost of goods sold.
Let’s say that you advertise your products on Google which led to a sale of $1000 (5 products x $200 each). Your advertisement expenses on Google came up like $100. Profit from each product is like $100. Cost to procure each product is $100. So, the ROI can be calculated in the following manner –
Total Revenue represent total sale which is equivalent to $1000
Total cost of products sold represents the total cost to procure the products + advertisement expenses which is equivalent to $100 x 5 (cost to procure each product) + $150 (ad expenses) = $600
Hence, the ROI can be calculated by –
(Total revenue – Total cost of products sold)/ (Total cost of products sold)
($1000 – $650) / $650 = 53.84%
So, your ROI is 53.84% which means you’re earning more than 53.84% return on every investment. You receive almost $1.54 back on investment of every $1 you spend.
Digital Marketing with Google
Google helps you to make the right decision on your spending as you identify the expenses related to your Google ads which can lead to successful campaigns and increase your profit margin depending upon increased conversion rate, purchases, sign-ups, leads, and web page visits. You can track your cost-per-conversion, determine the profitability of an advertisement or keyword, and evaluate your ROI.
Digital marketing with Google enables you to know your audience as it helps you to reach your targeted audience and know their likes, and dislikes, understand their behavior, demographics, and their background. It is a proven method that is customized as per the needs of your targeted audience. It provides you unprecedented opportunities to capitalize, build your brand, and create a community.
Here are a couple of Dos and Don’ts that will lead to higher marketability of your products and increase revenue –
- You should always find the right channel to market your products. There are various modes to reach your customers. For example, search engine platforms, social media – Facebook, Instagram, etc. wherein you can implement your marketing strategies.
- Increase engagement with your visitors/customers to a maximum extent and answer their queries within a short period or real-time impromptu. It will instill confidence in them to purchase your products.
- Address queries about your products to your customers. Reach them out and clear any pending issues or questions about your product and services offered.
- Avoid spamming your audience with repeated emails or reminders about products. Unsolicited emails annoy customers or targeted audiences. It doesn’t lead to an increase in conversion rate. Moreover, the majority of people feel annoyed to receive spam emails or posts.
- Don’t get too overwhelmed as your efforts to build your business online or sell products won’t happen overnight. It requires consistent efforts to build your customer base, increase conversion rate, build a brand name, and establish an online presence.
- Investing too much in advertisements with product prices higher than your competitors will lead to lower sales and reduce your overall ROI.
How to increase ROI using Google?
Google display network plays a critical role in uplifting inexperienced advertisers, marketing managers, and business owners through a targeted approach. It increases their visibility across a wide range of spectrums. It remarkets your business/website/brand and targets specific customers on the interest and market trends.
If you are using CPC bidding then you pay less per click. You can target your customer based upon the content they are viewing online. The Google display network covers more than 2 million websites. Your advertisement will be displayed with relevant sites leading to an increase in conversion rate. Google targets customers based on their needs and requirements. You should target high-ranking keywords related to your product, business, or niche. You should focus on increasing your initial exposure by remarketing and remodeling your business, product, website, or services, using Google tools. It will lead to an increase in revenue with a high ROI.
Optimizing your spendings to produce high revenue
Starting a campaign that offers the best ROI is critical for success. You should focus on allocating a specific budget to market your products online. You should aim towards a high return on investment (ROI) as it will lead to a continuation of your growth and progress. You can start a campaign using Google marketing tools to increase sales, generate leads, and evaluate the profits earned through your business.
ROI is associated with the ratio of net profit to your cost. ROI of 50% means that you receive $1.50 on the spending of $1.00. It is critical for your advertising efforts and marketing goals. Google Ads campaigns offer various tutorials towards minimizing your spending and increasing your revenue. While calculating your expenses, make sure to include advertising costs as well. Google advertising tools allow you to make informed decisions which leads to optimizing your spendings and producing high revenue.
You should aim towards building a customer base through email marketing, sign-ups, videos, purchases, or site visits. Increasing conversion rate is critical towards achieving high ROI. Google advertising tools allow you to calculate profitability based on high-ranking keywords. It allows you to track conversions, and evaluate the cost associated with each conversion. Overall, you can measure your performance, increase traffic to your business/website/brand, increase sales, and conversion rate. Most importantly, it will allow you to improve your ad spendings and increase return on investment to a greater extent.