ROI or Return on Investment is a very important analytical tool used by both businesses and investors. It is use to measure the profit earned from an investment or to compare the efficiency of a number of different investments. Generally it is expressed as percentage. The simple formula to calculate the ROI is –
ROI = (Net Profit / Total Investment) x 100
The positive value of ROI means the net profit exceeds the total investment and the investment is considered as net gain. The negative value of ROI means the total investment exceeds the net profit and the investment considered as net loss. In a business, the ROI metric is used to measure the rate of return on money invested in a project per unit time. It helps to decide whether the project should be taken off or not. In case of a number of different projects, the project with best ROI is prioritized.
To get the exact value of ROI, accurately calculated value of investment and profit is important. In case of internet marketing – PPC, internet bills and other costs, invested time etc. need to be calculated while calculating the total investment.
To improve the business, attracting the right customer is necessary. It will help to strengthen the ROI value of a company, to improve the ROI value some basic strategies need to be followed –
• Exact keyword match – Keyword is the main thing of a PPC ad. A general keyword or ad text may confuse the customers. The effectiveness of a PPC campaign can be increased by using the exact keyword matches. It helps to reach the searches which are relevant to the product or the offers a company wants to introduce.
• Proper timing – Finding the correct audience is important for a PPC ad. No two customers are alike. So, to reach to the correct audience, finding the proper time span of a day is quite important to push a PPC ad.
• Targeted landing page – The ROI can greatly be improved by introducing the proper landing page. The exact product, deals or information should be highlighted on the landing page for the visitors. A targeted landing page helps a company to reach the right audience. Introducing a video can increase the conversion rate.
• Multiple Campaigns – To target the different groups of audiences, creating multiple campaigns is quite important. All of the groups cannot be reached by a single PPC ad rather the ROI value may be reduced.
• Easy to navigate – The website of a company need to be organized so that the audience can navigate easily.
• Attractive ad copy – The important keywords and the targeting information should be displayed in the ad copy. Depending on the format, the keywords may be in bold, to draw the attention to click on the ad.
• Monitoring & Experiment – Proper monitoring & improvisation is needed to get the most effective ad to reach the target.