Five years ago, creativity was key in this industry. But now data reigns supreme. We’re going to discuss the five models for tracking ad campaigns and how to make them work for you.
The first method is shooting from the hip – you can set a goal and see if it works without too much planning beforehand. This isn’t always an effective way to track your advertising, though because you won’t be able to measure the results accurately.
The second method we can use is calculating the percentage of revenue. We can expect to get a certain amount back in returns, and by tracking our profitability, we can determine if our ad campaigns are successful.
The other model we look at is cost per acquisition. Cost per acquisition is based on the idea that I have a trackable moment at the end of the chain that I am going to associate with the advertising, with the first touch, and I can know what is my cost per acquisition if I spent $2 on the first touch and $3 on the second touch, you can add those events up and determine your Cost per acquisition and return on ad spend.
A champ challenger campaign is a marketing technique where you pit different concepts against each other to see which performs better. You need to invest the same amount of money into each concept so that they have an equal chance of success. Make sure your Google Analytics and Google Tag Manager are set up properly so you can track the progress of all campaigns, optimize poorly performing ones, and replicate successful strategies.
Lastly, you can look at your share of voice. You need to spend money in order to appeal to your desired market. If you are spending 2% of the total market share, then you will only make up 2% of the market. Make sure that your expectations are realistic. You need to know what your competition is spending in order to understand your share of voice.
If you don’t measure it, you can’t manage it. Having said that, start slow and be reasonable with your expectations. Track your campaigns, manage them properly and you can be sure of a successful ad campaign.
Comment below tips you have in managing your ad campaigns.