Are you getting the full view of how your marketing programs are performing?

One of the compelling reasons digital marketing and advertising has had such explosive growth over the last decade, is largely because it’s measurable to exceptionally granular, if not “big-brotherish” levels. Companies now have unprecedented amounts of data to measure the engagement, success and profitability of their marketing campaigns and tactics. And yet, many companies and agencies still struggle to measure true profitability and return on investment (ROI). Don’t believe me? Review the data that your agency is giving you.

Do you get reports on engagement, and little else? Ouch. What sort of engagement? Do they know what you do or sell? Are they coming to your site and immediately leaving? Are they searching your site because they were led to the wrong landing page and can’t find what they’re looking for? How is this impacting your revenue? If you’re not sure, then you don’t have a clear understanding of your ROI.

Much like following a recipe, there needs to be the right mix of ingredients (not too much or too little) added at the right time for ROI measurements to be accurate and meaningful.

Is your agency only reporting on cost per click (CPC)? That doesn’t tell you anything other than how much you’re spending. It gives you no insight into how much revenue the program is generating, much less if it’s profitable or not. If this is all you’re getting, you need to have a serious conversation with your rep (and probably start RFPing for a new one). 

“ Is your agency only reporting on cost per click (CPC)? That doesn’t tell you anything other than how much you’re spending.”

If you’re getting more than CPC, are you only ROAS? If yes, then they’re not reporting on ROI. Seriously. They’re not the same, no matter how confidently your account manager says they are.

Why? What’s the difference? ROAS, or “return on ad spend,” shows revenue related to only one expense metric, the cost of your ad(s). So, while a positive ROAS is an essential ingredient to the ROI recipe, it isn’t the full recipe. It’s like measuring the amount of flour in a cake, but not taking into consideration the cost or volume of the other necessary ingredients like eggs and salt.

So, what are some of the other measurement ingredients that your agency should be showing you? Well, the most obvious is the one they don’t want you to think about on a regular basis: how much you’re paying them. No agency wants to remind you on a daily or weekly basis, how much it’s costing you to have them manage your ads, pull together Power Points, or how much it costs for five associates, an account manager and a project manager to jump on a call each week to discuss the “health” of your program.



Not that those services aren’t important. They are. But they impact the profitability of your advertising programs, often just as much as the cost of placing your ads. What’s this mean for your ROI? If the cost of your ads, plus the agency fees you’re paying don’t add up to a positive number in relation to your program revenue, your ROI is burned.