As a business that is conscious of the growing trend of ad rejection amongst consumers, turning to performance marketing to reach your target audience is a pragmatic approach to this growing dilemma within digital advertising.
Paying for ads that are ultimately, never seen is a waste of valuable resources and a drain on your precious marketing assets. Thankfully, performance marketing eliminates this frustrating and expensive misspend and allows business owners to have their ads strategically placed across numerous channels, only paying for these ads when they get the desired consumer reaction, such as clicks, impressions, engagements, leads and sales.
When your attractive and eye-catching content is delivered across multiple platforms, consistently assessing performance of marketing channels is a crucial step toward crafting a persistent rich, consumer experience that targets the right viewers who want to know more about your products and services.
But how do we successfully evaluate the functioning of these marketing channels? Let’s explore the key approaches, here.
How Do I Know How Well A Marketing Channel Is Performing?
Knowing how well your marketing channels are performing will highlight their contributions to your revenue. To begin assessing performance of marketing channels start by focusing on the right metrics to analyse how well your channels are performing, and centring on the right KPIs to ensure you’re capturing the right data and receiving a full overview of your marketing channel performance.
By measuring your success against your chosen KPIs you’ll have a clearer understanding of whether your marketing channels are performing as they should be. Some of the Key Performance Indicators you may want to consider for your assessments include:
- Customer Acquisition Cost (CAC)
- Customer Lifetime Value (CLTV)
- Conversion Rates
Tracking Your Marketing Channels
Assessing performance of marketing channels means having the right digital tools at your disposal. If you’re assessing multiple campaigns over numerous channels, then crucial data can quickly become skewed and even overlooked. Examining your channel performance with the following tools can ensure there is no confusion over how well a marketing channel is performing.
- Google Analytics
- YouTube Analytics
- Facebook Page Insights
- Email Marketing Tools
Once you have determined your data, the overall performance of your marketing channels will ultimately, be seen within your ROI. This could mean an increase in search traffic, sales, and ad engagement.
What Should I Do If a Marketing Channel Underperforms?
If the assessing performance of marketing channels has highlighted failings and poor performance metrics across your multiple campaigns, or within one of your marketing channels, then now is the time to identify these flaws and reevaluate your approach.
Steps to Enhance Your Marketing Channel Performance
Consider these steps to enhance a disappointing marketing channel performance.
- Reconsider Your Choice of Ad Agency: If you’re utilising an Ad agency, the wrong performance marketing group can stifle your company voice and drain your resources with little return. Revaluate your choice of ad agency and focus on building stronger and better relationships that will be reflected in your data.
- Find Your Most Effective Marketing Channel: Are you using the right marketing channel? If your chosen channels don’t reach your target audience or allow you to effectively communicate your company message, then you’re essentially trying to fit a square peg into a round hole. Understanding your customers and target market, your budget, and the reach you need are all factors you should consider when sourcing the most effective performance marketing channel.
- Keep Measuring: Failing to recognise the importance of assessing performance on marketing channels is a common mistake that many businesses owners neglect. Not all marketing channels are created equal, therefore consistent measuring of the effectiveness of your chosen channels and your ROI is essential to ensure any underperforming channel, is quickly evaluated.
How Can I Improve A Channel That Is Already Performing Well?
When a channel is already performing well, it’s easy to wonder how to improve upon perfection. However, to continue this positive performance, and to continue to push for results, you must keep your finger on the channel pulse with a proactive and perceptive approach.
Steps to Continue and Enhance Positive Channel Performance
Consider these steps to continue and enhance a channel that is already performing well.
- Focus on Channel Management: Maintain and devote resources to your successful channels to ensure revenue continues to grow.
- Regularly Review Its Performance: Just because your current channel is performing well, doesn’t mean there isn’t room for improvement. While it’s tempting to roll the same marketing strategies out every year, review what you need to replace, diversify or improve upon to continue meeting your KPIs.
- Actively Enhance your Content: Enhancing the visual element of your chosen channels with images and video can increase engagement figures from your target audience.
Positive channel performance isn’t static, it’s constantly changing and you’re required to keep one step ahead of its trajectory. Engaging with a consistent, improvement mindset that prioritises testing, ROI scenarios, communication with its partners and formulates successful marketing implementations thanks to highly scrutinised analytics, will help you actively assess the performance of your marketing channels.
Still struggling? Get in touch – our first chat is free! Want to read more? Check out my article on the importance of digital due diligence.