Today’s marketers have more data at their fingertips than ever before. However, all this information isn’t helpful unless it can be organized and analyzed in a way that allows you to take actionable steps moving forward. It’s definitely recommended that you use some type of ad tracking software to help track your ROI.
Each channel has its own unique set of challenges when it comes to measuring ROI. For example, while some channels like email and search advertising are easy to calculate based on clicks or conversion rates, other channels like social media, PR, or content marketing are much harder to measure directly because they don’t provide clear KPIs. Here are some tracking and attribution models that can help you better handle your marketing efforts.
1. Conversion Rate Model
The conversion rate model tracks how many people purchase or take action after seeing a particular piece of content. This model only works if you have at least one conversion goal. For example, to measure your email marketing ROI, you need to know how many people convert from seeing your email to purchasing something from your store. To calculate the effectiveness of a paid social campaign, you need to know how many people click on the ads and convert.
2. Funnel Model
Funnel models are used by marketers with more than one conversion goal. The funnel model is used to track different conversion types such as website signups, newsletter signups, or purchases in your online store. The funnel model breaks down the process into four stages: awareness, consideration/interest, desire/intent, and action/conversion. It’s essential to keep track of where visitors are in the process so that you can figure out what actions they took and which ones were successful (or unsuccessful).
3. LTV Model
Marketers commonly use the LTV model with multiple goals for their campaigns. It’s also helpful to determine ROI during a campaign where various conversions are possible, such as clicks on ads leading to sales or purchases on Amazon leading to deals on eBay. The LTV stands for lifetime value and is an excellent way to determine how much your customer will spend with you.
4. Cost Per Acquisition Model
The cost per acquisition model is one of the simplest ways to determine effectiveness. It’s based on the idea that you can only charge a certain amount for every asset and that your marketing budget should reflect this. This is also an excellent model for determining whether you should increase or decrease your marketing budget. According to recent research, you can improve your ROI by 30% by spending less than $0.20 per acquisition on Facebook.
5. First Touch
The first touch model is best used when trying to determine the ROI of an email campaign. This model helps determine how many people opened an email, clicked on a link, or purchased something after seeing an email. You can also use this model when tracking other forms of online advertising such as Facebook Ads or Google AdWords. The first touch model breaks down the process into three stages: awareness, interest/consideration, and action/conversion.
6. Last Touch
The last touch model helps track different types of marketing campaigns. It’s also helpful in determining the effectiveness of email, social media, and other advertising. This model breaks down the process into four stages: awareness, consideration/interest, desire/intent, and action/conversion. The last touch model is an excellent way to help determine which marketing campaigns are working best and which are not.
The linear model is a simple way to determine the effectiveness of a campaign. It’s also helpful when trying to determine the ROI of your marketing budget. The linear model breaks down the process into three stages: awareness, consideration/interest, and action/conversion. Use this model when trying to determine if your marketing campaigns are working or not.
8. Time Decay
The time decay model is an excellent way to determine the effectiveness of email marketing. This model breaks down the process into four stages: awareness, consideration, desire/intent, and action/conversion. This model is instrumental in determining when your email campaigns are effective and which ones are not.
The time decay model is an excellent way to track the effectiveness of your marketing campaigns. It’s also a great way to determine which marketing campaigns are the most effective and which are not. You can use this model in conjunction with other models such as linear or first touch. The best part about this model is that it’s straightforward to use and understand.