Performance marketers, by definition, focus on tactics and metrics that have a measurable impact on the company’s goals. Successful performance marketers ignore vanity metrics in favor of real business results. Tracking Return On Ad Spend (ROAS), for example, provides a much clearer picture of what’s working than impressions or CTRs. But as outlined in our earlier ROAS strategy discussion, there are many ways to track and calculate ROAS, and even more ways to interpret what the data tells you.
So, when should you track ROAS of each marketing channel and when should you focus on single campaigns?
As you might have guessed, the answer is a little more nuanced based on your goals and the problems your company is trying to solve. But, just because the answer isn’t quick doesn’t mean we don’t have the right one for you. Here’s what we’ve seen work best for marketing teams from across industries.
The Case for Tracking ROAS by Channel
Omnichannel advertising campaigns are the standard for brands at this point. Capturing consumer attention not only takes creativity, but it also takes persistence, timing, and thoughtful targeting. We don’t have to tell you how budgets can get out of hand with so many factors affecting the success of a single ad.
Companies who want to understand how effective their spending is should track ROAS by channel. This doesn’t mean that you should automatically cut channels that aren’t delivering a high ROAS. Some marketing channels will show low ROAS, but their overall influence is essential. For example, a mobile ad may not earn as many conversions without the CTV ad that explained your company’s special deal. In that case, spending more on CTV awareness ads might result in more conversions on your mobile ads.
When you want to understand where to spend your budget and optimize for real business results, track ROAS by channel. Remember that each channel informs the other, so give yourself room to test various budget splits to get the best results.
The Case for Tracking ROAS by Campaign
Some teams are more concerned with messaging. Perhaps you’re in the middle of a rebrand or want to refine your value proposition to reach new customers. If those are the most important goals for your marketing team, tracking ROAS by campaign is a much better strategy for you.
Whether we’re talking to customers or fellow marketers, the most common problem we hear is how to cut through the noise. We all see thousands of messages a day, it’s increasingly difficult to know what feature of your product or service resonates most with audiences. Tracking ROAS by each campaign will give you a quick snapshot of which messages are working with whom. From there, you can refine the creative, reevaluate the audiences, or move forward with your winning strategy. It won’t be the only answer you need, but it will give you a good idea and allow you to pivot quickly.
Get Real Business Results with GroundTruth
In truth, there are a million ways to ensure your ROAS performance marketing efforts succeed. Tracking marketing ROAS by channel and by campaign are two important ways. But, most importantly, your teams need a partner that is focused on the same real business results they are. GroundTruth is that partner. Want to know more? Contact us today!