The Importance of Performing Marketing Analysis to Paid Ad Campaigns
Today, many companies and entrepreneurs find paid advertising to be the most scalable channel to attract a relevant audience to their website. In other words, to gain an advantage in the competitive market, or improve upon their marketing metrics. However, almost every second marketing specialist fails to achieve paid ads’ primary objective, which is to drive leads and eventually sales to one’s websites.
Even though advertising seems straightforward, there is much more than meets the eye. Like any other form of communication, an effective advertisement must be sharp and highly calculated to evoke a response regarding the receiver’s needs and desires. In other words, an effective ad should improve the marketing metrics or the overall operation of the advertised entity.
The question is, how can you, as a marketeer, improve the effectiveness and efficiency of your paid advertising?
Assessing Paid Ads Performance
Paying for advertising, such as Facebook or Google ads, doesn’t necessarily mean an increase in your sales. Your visitors may navigate your website without spending any money, or, in the worst-case scenario, you may not even get leads.
No matter the case, as a marketeer, or an entrepreneur, you must understand the issue behind this challenge. To do so, you need to analyze your advertising campaigns or quantify ads’ effect to attribute sales to their marketing results.
In this sense, it is imperative to analyze the daily data reports of the ad expenditure on your many campaigns.
Reasons to Analyze Ad Performance
First of all, you are spending money on your paid advertisements. So, it is always better to know how your cash is spent in order to improve your operations’ cost-efficiency and ultimately improve your ROI (Return on Investment).
Next, a proper evaluation may assist you in detecting critical areas or spotting an improper return. For instance, you may have appointed an inexperienced marketer for the set-up of your ad campaign. By performing a digital analysis or evaluating your marketing KPIs, you will be able to spot such issues and ultimately improve your decisions.
You will also be able to test out many different hypotheses and adjustments, along with developing an in-depth understanding of your visitors, their interests, and their needs.
Ad performance analysis and numerous other digital marketing practices are a part of the field of marketing analytics. So, let’s review the concept and more complex marketing analytics aspects, such as marketing metrics and attribution models.
What Is Marketing Analytics?
Marketing analytics refers to data collection and metrics analysis across multiple marketing channels to better understand the marketing campaigns’ impact, identify critical areas of operation, and ultimately improve the ROI.
In other words, marketing analysis helps you diversify which efforts, or in this case, ads, are making a difference, and which ones are a waste of money. Digital analytics can also evaluate whether your new marketing medium is bringing you any additional visitors.
How Website Marketing Analytics Helps Your Business
In general, there are three main reasons how assessing marketing metrics can assist you in improving your business efforts:
- Develop An In-Depth Understanding Of Your Audience’s Needs And Preferences
- Quantify The Effect Of Your Marketing Advertisement Campaigns
- Monitor Past And Current Trends To Predict Future Opportunities
The Role of Marketing Attribution Models
As mentioned before, it isn’t easy to fully access and understand user behavior. For that purpose, marketing analysis reveals various conversion path touchpoints contributing to the sale, better known as marketing attribution models.
To be more specific, there are six standard attribution models:
- First Interaction
- Last Interaction
- Last Non-Direct Click
Each attribution model can help you better understand your ad campaign’s impact on your conversion funnel. However, what is vital for marketing analytics is that there is no one size fits all. You will have to analyze your marketing metrics to detect which marketing channels, campaigns, and campaign types work for your audience or niche.
To facilitate your process, you can take advantage of a Marketing KPI dashboard.
What is a Marketing KPI dashboard?
A marketing dashboard is an information management tool that summarizes all marketing KPIs (key performance indicators) and marketing metrics to simplify marketing analytics into an easy-to-understand visual board.
As a marketer or a business executive, you can use the marketing dashboard as a progress report or a way to monitor your business’ health. However, you are the one that chooses the variables which are to be included on the marketing KPI dashboard. So, make sure to properly customize the tool to meet the specific needs of your operations.
All things considered, marketing analytics and marketing metrics play a critical role in your marketing ad campaigns’ success. More precisely, collecting and analyzing your marketing plans’ data can improve your strategy and help you gain a competitive advantage in the field. It is essential to properly use marketing analytics tools to detect the critical areas, predict future trends, increase your revenues, and, ultimately, emerge as the industry top player.