The Perfect Campaign: Test, Optimize, Repeat

The Perfect Campaign: Test, Optimize, Repeat

Take a hundred dollars and turn them into a thousand. That’s the basic principle in marketing, right?

No matter if you work with clients or an employee in some company’s marketing department, at one point, we all hear something along the line of “I want you to get me 10 actions every day right from the start.” My answer is usually: “There is no magic formula. Marketing is A/B testing”

And that’s exactly my point. Marketing is all about data. You make a decision based on data you get from clients, purchases, leads, conversions or educated assumptions. It may be an assumption regarding your target audience.

Let’s say you are launching a jewelry store online. Who is your target audience? To asses that, you need to get input from the designer: Who is the jewelry made for? Then, you can create a sample targeting group that matches the demographic information the designer provided. This will be your first test. Once all the creatives are done and live, you are able to measure the results by a few factors.

• Click-Through Rate (CTR): The average between the number of impressions and the clicks the ad got.

• Quality/Relevance Score: How relevant are the creatives and landing pages for the targeted audience? This number is usually rated one to 10.

• Conversion Rate: What percentage of the users who clicked on your ads actually purchased?

• Time On Site Or Bounce Rate

By assessing the results for the different creatives (at least three to four for the first test), you can choose the best-performing one for that audience. Or you may realize that you need to adjust the targeting if, for example, the quality score is low (below six), the CTR is OK but the conversion rate is low and the time on site is short. That will tell you that this is not the right target audience. However, if the quality score is good, the CTR is good but the conversion rate is low, you need to analyze the traffic performance on the landing page and optimize it.

This is just one example of how you can test an assumption and optimize based on that. When you are trying to create a marketing strategy, always question your assumptions. Never promise anyone a magic campaign or huge results with a strict budget.

So, how do we set the right budget for the audience? What I like to do is look at the target audience’s estimated size. Most tools will also give you the exposure-per-set budget, so you can choose the right amount of exposure per day or overall for the test period. There is not a minimum budget to run with, but I never go for less than a few thousand impressions per day. I find that this will give you the best exposure for the test. It may be $20 per day or even $200 per day, depending on the system, audience, competition or keywords.

Many clients expect to spend very little or as little as possible and get amazing results. Never make promises you can’t keep. And until you have tried a target audience and a product, you never know how it will work. Even if you work on a product that already sells, you will be expected to show better results than before, and this is the exact same thing as working on new objectives.

The best campaigns likely had many variations before they saw amazing growth and success. Make sure you always have a few approaches ready to go. The whole point of A/B testing is to test two or more different assumptions. This may be a combination of different creatives, audiences and landing pages. By doing this, you allow your budget to be spent on two different assumptions and optimize the one that works better. Sometimes, you even get good results with the two approaches and it’s a win-win situation.

The thing that never changes is that you need to base your decision on data. You begin with an assumption or past performance data, you go into real-time performance optimization, and then you optimize based on results and do it all over again.

A campaign has to be optimized all the time. Treat it like a little baby — it needs care and love or it will die.

 

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POST WRITTEN BY:

Kobi Ben-Meir

Marketing Director at Got Capital. Overseeing the brand and marketing strategies in the US. View the original article published on Forbes.

TOP 5 MARKETING MISTAKES TO AVOID

What’s a pirate’s favorite thing about marketing?

Thee arrrrrROI

 

Marketing plays an important role in establishing relationships between customers and businesses. Marketing also helps maximize profit and exposure of a company. But however, if done incorrectly it can have an opposite effect!

1) Failing to set goals

For digital marketing-the rule of thumb is to be ROI focused. But is also very important to be goal orientated. Failure to set goals could be a way to ensure the failure of a campaign. Decide what you want your marketing campaign to achieve-set goals and timelines. However, it is important to keep in mind that setting goals may seem easy-but it is important to be as precise, measurable, realistic and attainable…as possible.

Bottom Line:

Having clear set goals help you monitor benchmarks along the way and identify if changes need to be made.

2) Lack of Research

Market research and testing are crucial because they can determine the performance of each of your marketing efforts. They take the guesswork out of what your potential customer wants from you. With proper research and testing you can figure out what audience demographic does your company appeal most to and how you should position your product.

Bottom Line:  Research helps you learn more about your customer and the right ways you can market your products to build brand awareness.

3) Failing to Capture Repeat Customers

Customer retention is an important marketing business strategy that helps increase profits and reduce turn-around rates. Always keep in mind a huge chunk of your business profits comes from existing customers. Failing to resell to your current customer base could result in lower profit and lower retention rates.

Bottom Line: Don’t let your customer go to your competitor.

4) Being Anti-Social…Media

Social Media can be like being at a cocktail party and having to talk to people you were avoiding for the past 20 years. But social media can also be like a cocktail party and having to talk to people that you have been missing for 20 years. Social media can be a great way for a company to get exposure. It is also a crucial component on how to boost your company site’s SEO. You can use lower-cost social media strategies and increase traffic to your website.

Bottom Line: Social Media is a great tool to increase customer acquisition and traffic to your website.

5) Aggressive email blasts

Email marketing is a great tool to build brand awareness and engage with your customers! But sometimes, it is easy to forget the importance of proper audience segmentation. Aggressive email blasts affect deliverability and increases the chances of customers putting your much important email in the dreaded folder…Spam.

Bottom Line: Don’t spam your customers with emails. Personalized emails come a long way.

 

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