Discover how to track the ROI of your campaigns through Reportei, which metrics to analyze concurrently, and how to extract the most valuable insights
Measuring the ROI (Return On Investment) of digital marketing campaigns is not just a savvy practice, but crucial for maintaining the financial health of any business.
However, it’s not just about calculating this metric. It’s essential to understand how to analyze this data, cross-reference it with other vital pieces of information from paid media reports, and garner insights that give you an edge in the digital realm.
Thus, in this article, we will demonstrate how to access the financial return of your campaigns through Reportei and how to make more effective analyses in your routine. Read on.
Importance of Campaign ROI Analysis
The ROI analysis is one of the most significant steps when aiming to make your digital campaigns more profitable. The main reasons to closely monitor this metric include:
Data-driven Decision Making: as it lets you evaluate which campaigns are more profitable. Using this data, businesses can allocate resources effectively, channeling more investment into strategies that promise a solid financial return;
Resource Optimization: by understanding which campaigns have a positive ROI, companies prevent wastage on less effective strategies, leading to a more efficient allocation of the marketing budget;
Identifying What Works: by determining which strategies, channels, or messages resonate best with the target audience, enabling real-time adjustments to maximize impact;
Continuous Improvements: by understanding what drives a good ROI, companies can consistently refine their strategies. This means designing more effective campaigns, directing efforts towards endeavors that genuinely yield tangible results;
Value Demonstration: a robust ROI analysis empowers the team to show the value of their activities to company decision-makers, ensuring continuity and even an increased marketing budget.
In summary, the ROI analysis not only validates marketing investment but also acts as a compass guiding businesses where to allocate their resources most effectively, ensuring sustainable growth and competitiveness in the digital landscape.
How to Analyze Campaign ROI with Reportei?
When generating your Google Ads, Meta Ads, or other paid media reports via Reportei, you can access the metric showing the return on the financial investment made in your campaigns.
For our reports, you’ll see the ROAS (Return on Advertising Spend), which details the profit earned against the investment made. This metric is determined by dividing your conversion value by the amount spent. Check out how this metric operates at every stage of your report and how to analyze more accurately alongside other data!
Overall Account ROAS
When producing your report on Reportei, you’ll notice one of the prominently featured metrics in the overall results is ROAS, indicating the financial return from all campaigns advertised on your account.
This metric assesses if the total expenditure was justified during the analyzed period and if the campaigns, in general, are profitable for the business.
As you might be aware, a positive ROAS indicates profit, while a negative ROAS confirms a loss on that investment. Based on this overall result, it becomes necessary to seek more precise analyses of the displayed campaigns and ads.
ROAS of Campaigns, Ad Groups, and Keywords
For a more detailed analysis, reports like those from Google Ads offer an option to assess the ROAS by campaigns, ad groups, and even keywords. This can help visualize which contents are most effective in driving conversions and which require the team’s attention.
For instance, suppose a specific term generates a negative ROAS for your campaign. Analyzing this criteria, alongside other metrics in the table, will help determine if purchasing that keyword is truly worthwhile or if it needs removal from your ad group.
The ROAS metric is available in the tables but needs to be manually added. To do this, simply access settings, select the “Columns” tab, and then check the ROAS box. Afterward, you can save this template for reuse as many times as you want.
Which Metrics Should Be Analyzed Alongside ROAS?
Beyond ROAS (which aids in understanding your campaigns’ ROI), Reportei’s reports also provide comprehensive metrics for paid media channels. Their goal is to offer a holistic view of your results and how each part impacts the overall picture.
However, below, we’ve highlighted some of the most pertinent data points to monitor, which can assist in better understanding your campaigns’ performance:
- Total Campaign Cost: if the cost is high relative to ROAS, it’s vital to optimize the campaign’s efficiency in generating conversions. Also, evaluate the Cost Per Click (CPC) of the ads, which helps understand campaign and creative efficiency;
- Conversion Rate: measures how many interactions with ads led to a desired action like filling out a form or making a purchase. It’s crucial for gauging campaign performance towards conversion objectives;
- Cost Per Conversion: displays the average cost to acquire a conversion. It’s a pivotal metric for determining if your ad expenditure aligns with your objectives;
- Click-Through Rate (CTR): measures the efficacy of ads in attracting clicks. A high CTR can suggest your ads are pertinent, possibly leading to enhanced conversion performance – provided the landing page content aligns with the ad’s promise and objective;
- Quality Score: for Google Ads advertisements, the Quality Score is vital as it affects both the cost per click and the ad positioning.
Analyzing these metrics in tandem with ROAS will provide a more comprehensive view of your campaigns’ performance, allowing strategic adjustments to enhance investment returns. Additionally, the context supplied by these metrics aids in pinpointing areas needing optimization and formulating more effective strategies.
How to Extract Better Insights to Boost Campaign ROI?
Beyond capturing your campaigns’ metrics, Reportei also incorporates artificial intelligence features that assist in automating report analysis and insights, which can be game-changers when aiming to elevate your ads’ ROI.
Alongside this, you can employ the paid traffic assistant for more precise data analyses – considering your goals – and access strategy suggestions that can make your campaigns more on-point.
This AI functionality is now available for testing across all accounts and Reportei AI plans on our platform. Find out which one best fits your routine!