Finding the best digital marketing agency isn’t easy. There are so many things to think about, like whether the agency can deliver on their promises or if they’ll drain your cash every month with no return.
And once you’ve narrowed it down to a few contenders, you might wonder what a reasonable price for a good agency is, or whether you even need one in the first place.
The truth is, agencies can help you get a return on your marketing budget at a fraction of the cost you’d have to spend to assemble an in-house team. But before you can run your marketing campaigns, you have to make sure that you and your team have the following:
A good understanding of your customer’s behavior
At its core, marketing is all about communicating with your customers in their language on the platforms where they hang out. Before you can do that, you need to understand your audience. Not just surface level stuff like “they need help with SEO,” but a deeper understanding.
For example, what other solutions have they already tried to solve their problem? What do they think will work best for them and why? What do they think is unique about their situation? Remember, successful companies prioritize customer research. Big companies build an entire team to handle customer development alone.
Structured processes and documentation for each task
When you’re starting a business, it’s all about hustling. You’re just trying to generate revenue however you can. But as you grow, you must develop more documentation and processes around your workflows. For example, you might need to have documentation for how to run a PR, social media, or paid advertising campaign.
The right tools
Online marketing campaigns require a variety of tools from start to finish, such as Get Response or MailChimp (which has a variety of features to help automate your emails) to run your email list, and Google Analytics or KISSmetrics for more sophisticated data. The more sophisticated your tools, the more time you’ll need to spend on training your employees to use them, and the more that will cost your business.
The average time it takes to see consistent organic traffic to your site from SEO is around 5 to 6 months. That means you have to be consistent with your content creation for months at a time until you start seeing ROI. Some of the most successful content marketers have been consistently putting in effort for many years.
It’s easy to write random blog posts, but can you write quality content that your specific target audience will find valuable? That’s what separates decent blogs from truly great ones. At the end of the day, high rankings in Google come from creating and publishing remarkable content that your audience truly wants, not by trying to game the system.
See Also: What is branding?
You should make sure that you have experience designing and running some portion of marketing campaigns. The last thing you want is to spend months and months on content creation or thousands of dollars on paid traffic only to see no results and have no idea where you went wrong.
It takes time to satisfy all these criteria. It’s difficult to post high-quality content every single day when you have a bunch of other pressing business issues on your plate. It’s not easy to craft an airtight process to help new hires hit the ground running from day one.
It’s just a fact of life that there’s going to be some trial and error involved.
But if you hire a digital marketing agency, you can avoid the cost of trial and error of running your campaigns, getting your team up to speed, spending time and company resources on maintaining your content consistency, and so forth. You can also avoid getting sidetracked from other important things you have to do, like closing deals or getting investors.
In this post, we’ll talk about how to calculate your expected results when hiring a digital marketing agency and present some case studies of real companies that have gotten results.
Get the best Digital Marketer who knows (WHAT, HOW & WHEN) for your business?
What Results Can You Expect?
The most important thing when it comes to your marketing spend is your ROI, but the problem is that most marketers don’t know how to measure their marketing ROI.
According to Marketing Profs, 82% of marketing executives say that they expect campaigns to be measured. And yet only 18% can measure the ROI of public relations, 24% can measure the ROI of search engine optimization, and 26% can measure the ROI of social media.
Getting a high return depends on a variety of factors, which is why no specific result can be guaranteed for any individual company. For example, it could depend on:
- Quality and how competitive the product is in the market
- How competitive and sophisticated the industry is as a whole
- Competence of the agency that’s responsible for marketing the product
- The marketing channel(s) that are being used
- How accurately conversions can be tracked
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You should make sure that your agency understands how to calculate ROI. If they don’t, that should be an immediate deal-breaker.
But before you spend money on hiring an agency, you should first calculate the results they would have to get for you. Here’s how you can:
Calculating ROI for an AdWords Campaign
Calculating your ROI for your AdWords Campaign isn’t as straightforward as it might seem.
If you have Google Analytics, you’ll notice that there’s a default tab that shows the ROI of AdWords.
However, there are a couple of issues with this:
- Google Analytics combines your total revenue from both your transactions and goals. This could potentially lead to double counting. For example, if a user on your site adds something to their cart, it becomes a “monetized goal.”
- In addition to this, Google assumes that all your revenue is profit since it can’t add in the costs of your business.
Here’s an example of a Google AdWords ROI report:
ROI here is calculated as revenue – cost/cost.
In the screenshot above, you’re making 500% ROI if your revenue is $600 from a $100 ad spend. There are a couple of things to be aware of here:
- When a product on your site is purchased, you might have both e-commerce revenue and a goal value captured for a single transaction (depending on how Google Analytics is set up on your site). The default ROI calculation performed by Google Analytics includes all types of revenue (transactions & goal values). This double counts revenue, which can throw off your numbers.
- Notice that in “Keyword 1” in the first row of the Google Analytics screenshot above under the “ROI” column, there’s the number 823.33%. This means that you can spend 9x as much on AdWords and still see positive ROI. Of course, this isn’t true.
According to the screenshot below, there’s a massive difference between the default ROI listed in Google Analytics for each keyword compared to the real ROI.
Your real ROI calculation should also factor in your profit margin. The formula for this would be revenue x margin – cost/cost. In the screenshot, if your profit margin is 0.4 and your revenue and cost are $600 and $100 respectively, then your ROI would be 140%.
In other words, you can afford to spend 140% more on AdWords and still see positive ROI. However, if you just relied on the number in Google Analytics, you’d think it would be 500%.
Calculating ROI for Social Media Ads
Social media is one of the toughest areas of marketing to justify to executives in terms of spend. That’s because most marketers don’t know how to calculate the real ROI of social media beyond just surface-level metrics such as “likes” or “favourites.”
The first question to ask yourself when calculating social media ROI is: what are your end goals? What do you ultimately want to achieve through social? Maybe you want to maximize the amount of traffic that you drive to a specific page. Maybe you want people to fill out their contact information through Twitter cards.
We have some good examples of the goals you could track:
- New followers
- Clicks on the link in the update
- Online purchases
- Filling out the contact form
- Signups for newsletter
- Downloads of PDF file
- Time spent on an important web page
The next step is to track your chosen goals. You can track website actions (i.e. sales, downloads, signups) in Google Analytics, or use more sophisticated tools like KISSmetrics to get more data on who exactly is visiting your site and completing a set of actions.
Next, you need to assign a monetary value to the actions completed. Here are a few options:
- Lifetime value — this is the average dollar amount you earn per customer
- Lifetime value x conversion rate— this number tells you how much each potential visit is worth
- Average sale — this is the average purchase through your site
- PPC costs — this number represents how much you’d pay to use ads to achieve the same social media actions
Here’s an example of a chart that shows the ROI of a variety of different channels:
One way to measure the ROI of your organic social media follower count, likes, etc., is by calculating how much it would take for you to get the same number via paid ads. For example, if you have to pay $0.25 per follower, and you have 1,000 followers, then that’s a return of $250.
You can subtract the cost of your time, the cost of the tools you use, and your ad spends from that number to see the real return on investment that goes to the bottom line.
According to Buffer, here are some benchmarks on how much each social media platform costs based on their results:
- Facebook like average — $0.50 per page like
- Facebook reach average — $0.59 per thousand impressions
- Facebook click average — $0.50 per click
- Promoted tweet — $3.50 per thousand impressions
- LinkedIn — $2.00 per click
Do you want the right team to handle your social media and generate more sales?
Calculating ROI for Content Marketing
There’s little dispute that content marketing works. There have been multi-million dollar businesses and thought leaders that have been built solely through content marketing.
Even so, it’s important to have the right metrics in place when measuring the effects of your content marketing. According to the Content Marketing Institute, there are a few key things that you should be sure to measure:
Unique visits are meant to measure how many individual people viewed your content in a set period. This is a good, general baseline to measure your content marketing progress. It’s important to remember that not all unique visits are created equal. The quality of your visitors can be impacted by a variety of factors, such as your traffic sources, the pages your visitors are viewing, the quality of the content they’re viewing, and how it fits within their stage of the buyer’s journey.
It’s also important to understand where your readers are located. By being aware of this, you can get more targeted with your paid advertising and other campaigns that you’re running.
You should also know if readers are actually reading your content or just landing on your page. It helps to know which mobile device they’re using, how they’re responding to design, and so on.
Bounce rates/time spent
High bounce rates indicate that the content on the page(s) that your audience is viewing doesn’t match what they were hoping to get out of it. If you’re getting high traffic along with high bounce rates, that could be a sign that your headline and body text have some sort of a mismatch.
Heat maps can help you better determine engagement on each of your articles. CrazyEgg allows you to create heat maps to see which sections of a page are getting the most views. You can also use SumoMe’s free heat map tool.
A page view is another simple marketing KPI that’s used frequently. Measuring your total number of page views against your unique page views shows you how engaged your audience is. For example, are they reading multiple articles on your site? Or do they bounce immediately? Do they return later to see if there’s any new content?
Comments are a great way to gauge feedback from your audience, and see how emotionally compelling your posts were.
The best form of marketing is word of mouth, and social sharing is essentially word of mouth on the web. A great way to get more people to read your content is by giving people the option to share.
Now that we have a good sense of which metrics to track and how to measure the ROI of a few different marketing strategies, let’s dig into some case studies.
Globalsoft innovation Case Study
We worked with the information technology company Globalsoft innovation to boost visibility through branding.
At the time, Globalsoft innovation was about to be launch with services like computer sales & repair, networking and IT training all in their package. Based on their research, they found that their customers will appreciate getting all these services delivered to them by one brand.
The challenge for us was helping Globalsoft innovation build visibility and become known for each service. Plus there was some concern around their specialized competitors.
To solve that, we helped Globalsoft innovation build visibility in organic reach such as logo design, flyers, business card, banner and signage. That meant building out content to help position Globalsoft innovation as a multi-service information technology company.
Tactically, we used the brand vision as techniques to help Globalsoft innovation build a brand image that the customers can easily relate to, and leveraged social media to connect with new customers who had a high likelihood of being interested in Globalsoft innovation services.
Prfutball Case Study
A new sports hub for football fans and football prediction enthusiast approached us to help them boost visibility in social media and drive traffic to their website.
The challenge, in this case, was the fact that there wasn’t much room for error. A new football hub business has razor-thin profit margins, which means that every dime they invest in marketing needs to have a strong likelihood of producing a return. There’s not much to waste.
We started by testing a variety of different ads creative, targeting segments, and placements. This helped us find a few combinations that delivered the most visibility for Prfutball in terms of the social media fan base. Once the fan base was established, we started growing the engagement rates of posts.
The strategy we use to get public interest was the introduction the Prfutball FPL Challenge, the campaign aimed to connect the new Prfutball Brand to football lovers, this goal was achieved as over 1000 people participated in the challenge and they were also redirected to a WhatsApp group which is the 1st step to customers loyalty to the Prfutball brand community.
Another strategy we used to get in front of new customers was behavioural targeting. We implemented geographic targeting of ads, Lookalike Audiences, and Brand awareness to get the best out of our ads.
On social media, images become “stale” faster than they do on other channels because of the speed of content consumption on social platforms, so we implement video content more frequently.
Now, let’s talk results
We drove 5,000 people to Prfutball page with a single campaign on twitter. We also doubled Facebook reach within one week and monetized new fans.
Just one campaign drove more than 196,000 conversions at the start of the 2019/2020 season. We also boosted post engagement by 400%.
It is time to Grow your Business Online and Increase your ROI
Hiring the right digital marketing agency can drive significant returns to your bottom line and provide you with a team of specialized experts to help you in a variety of areas, like:
- Paid advertising
- Video advertising
- Mobile marketing
- Content marketing
- Email marketing
- Conversion rate optimization
You could use an agency to get a more in-depth understanding of your customer’s journey and what motivates them to buy.
You could use an agency if you have a physical store and want to boost the number of visits like we did for Globalsoft innovations.
Or you might just want more visibility in Google search rankings or find ways to reach your audience through new channels.
If you don’t have the bandwidth to handle end-to-end marketing campaigns in-house, a marketing agency could be a great way to bring a team of experts to work on your business at a fraction of the cost and time you’d spend on putting together your team.
Springital is one of the top online marketing & lead generation agencies in the world. We help small and big business get more leads and sales. How do we do it? With various strategies and processes such as content creation, social media marketing, conversion rates optimization and more.
If you want your business to get more leads, don’t hesitate to contact Springital so we can start studying your target market and your competitors. Then, we’ll help you define a marketing strategy.
We go further than just consulting. We execute the strategies for you to your processes will be automated and you’ll get leads and sales semi-automatically.
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