Where does your marketing budget go? ROI checklist.

Hi everyone!

?? Tell me honestly, do you like to waste money? Not just use it on yourself and your desires, but squander it in vain, throwing it in all directions?

Usually, people try to find more intelligent use for their money. On the other hand, if you have no control over your ad campaign budget, you may be wasting money.

• For example, do you know how your marketing agency allocates money for an ad campaign?
• Do you have access to the admin panel of your advertising campaigns in Google Ads or Facebook Ads?
• Do you track the progress of the advertising campaign in this admin area?
• Does the marketing agency provide you with a complete expense report?

?? Answering ?No? to at least one of these questions is a red flag.

Unfortunately, it often happens in the advertising business that a marketing strategy fails, and the client learns about it too late. The budget dissolves before your eyes, and these expenses bring no results.

What should you do to avoid such a failure? I advise you to take several key steps:

1?? Get access to advertising accounts

If you do not have access to Google Ads or Facebook Ads accounts yet, ask your agency for it. First, it will allow you to control the use of your marketing budget. Second, it will help you avoid problems if you decide to change marketing partners or hire someone on your staff. Trust is a great thing, but not when it involves potential troubles for your business.

?? You can read more about working with advertising accounts in??AdWords Agency ? and ?Facebook Ads Agency .?

2?? Monitor the progress of the advertising campaign

Demand detailed reports on how and where the spending is happening. The marketing agency should report regularly and explain spending patterns.

3?? Respond quickly to deteriorating performance

If you see that the company is not delivering the expected results, do not be afraid to stop the process. It is better to stop the advertising campaign now and rebuild the marketing strategy than to be left with nothing by the end of the campaign.

How to calculate your investment performance: ROI, ROMI, ROAS

You can use three different formulas to keep track of your spending:

?? ROI (Return on Investment) can show if the project is profitable, considering all the investments. In other words, you count in all your expenses for this one: office rent, employee salaries, and the rest of the running costs.

?? ROMI (Return on Marketing Investment) shows the effectiveness of your marketing investments. In this case, only the marketing costs count. That includes, for example, the salary of the designer and copywriter who created the ad.

?? ROAS (Return on Advertising Spend) allows you to calculate the effectiveness of a specific advertising campaign. For instance, only Facebook Ads.

At first glance, these indicators are quite similar, but this is a wrong impression. ROI can show you if your business as a whole is profitable and successful, while ROAS can make it clear if a particular ad campaign is unprofitable for you. That may imply an urgent need to change the advertising strategy so that the entire business does not suffer.

?? Budget and effectiveness issues are the top concern for any firm, which is why there will be more on this topic in the upcoming letters.

Good luck!