What Is Marketing Optimization

Anthony Xiques

also recommends Deadline Funnel as a CRO tool: deadlinefunnel.com

Updated:
December 8, 2022
Created:
December 7, 2022

Marketing optimization is the process of measuring campaign performance and then making changes to your funnel based on your analysis of that campaign data in order to increase sales, often using personalized marketing software.

A marketing optimization process gives marketers the tools to better target or even decrease money spent on advertisements, while improving key metrics such as Cost Per Acquisition (CPA), Average Order Value (AOV) and Customer Lifetime Value (CLTV or LTV). Once a marketer knows which channels to target and how much they should spend, they are able to make informed data-based decisions to increase net revenue & overall profitability.

Marketing optimization requires a constant stream of consumer data and cannot be finished. Therefore, marketing efficiently is an ongoing process. What makes marketing optimization important is that it will boost sales over time while potentially cutting costs towards marketing expenses, primarily paid advertisements.

Digital Marketing

Digital marketing optimization requires multi-channel marketing. As a result, a potential customer will enter the marketing funnel through different avenues such as paid advertisements, social media, search engines, or email marketing.

Digital marketing optimization requires assessing each different entry point of the sales funnel, finding a target market, and calculating the conversion rate of landing pages to encourage more sales.

Digital marketing requires more marketing analytics to determine whether marketing efforts are successful. Digital marketers specialize in utilizing and analyzing different KPIs, such as Google analytics, in diagnosing which ad campaigns gain new customers successfully and result in more conversions.

Why Optimization in Marketing is Important

Marketing optimization analyzes marketing data. The marketing results determine which campaigns are necessary for further growth and which are redundant and do not increase sales.

After analyzing which marketing funnel leads to increased sales, marketers can decrease ad spending on platforms that do not produce qualified leads and generate revenue. Instead, the money formerly used on ineffective marketing campaigns can be targeted towards a marketing channel that funnels potential customers.

In other instances, increased ad expenditure may not lead to increased revenue. Marketers will discover the appropriate amount for optimized revenue if this is the case. In essence, marketing optimization requires receiving the most profit from the least ad spend: more bang for your buck.

Successful Campaigns

A successful campaign sees a better return on investment. This means that every dollar spent generates the most amount of profit in return. Many large companies spend thousands or even millions toward an ad campaign. Smaller companies may not be able to afford the high cost but can still compete by targeting their ads specifically toward their audience.

Increased Efficiency

Even though ad spend varies widely from company to company, a business can easily waste money if a certain funnel does not receive a return on investment.

Therefore, a great marketing campaign reassesses revenue streams on at least a monthly basis to determine whether or not the particular marketing tactic is still generating qualified leads and revenue.

Businesses can optimize their marketing efforts and increase efficiency by continually making adjustments.

Organized Action

An efficient marketing strategy requires organized action based on both short-term and long-term goals. For instance, a brand may focus on gaining more revenue from a particular target audience in the short term while reaching out to new demographics in the longer term.

To ensure proper marketing optimization, a marketing team must assess key metrics from various sources. Moreover, setting clear goals can help optimize your marketing strategy.

How to Improve Your Marketing Strategy

Improving your marketing strategy requires knowing the ins and outs of the product or service you are trying to sell to potential customers. Knowing the product/service lets you set financial goals, pinpoint a target market, and collect relevant data.

Setting Your Goals

Before a business attempts to optimize marketing tactics, it must first set clear goals. Without clearly defined goals, a business is unable to understand what the data means or which data to collect in the first place.

Increase Website Visibility

A business is not able to have an effective marketing strategy if there is low traffic to the website. By increasing search engine optimization (SEO), a business may be able to drive more traffic.

An example is a company with low traffic to its website. In this instance, the company may focus on increasing traffic by improving its SEO. Ways to improve SEO include improving technical SEO, targeting long-tail keywords, and increasing backlinks.

Increase Conversion Rate

Once a business has adequate traffic to its page, it may still not see the traffic translate to larger sales. In this instance, the business must increase its conversion rate. A low conversion rate means that there are pain points in the sales funnel.

Consider a SaaS business that sees high traffic from its YouTube page. However, only 1.5% of the potential customers end up purchasing the software.

A good goal for this company would be to increase the conversion rate, or percentage of paying customers from traffic sources, by aligning their landing page with the demographic data from their YouTube page.

Gaining More Social Media Engagement

Social media engagement can expand businesses to new customers. Social media is akin to word-of-mouth advertisement. People are more likely to trust a business if their friends use that same company.

For example, there is a company that sells shoes. The shoe company notices that the referral traffic from their Instagram page has an exceptionally high conversion rate compared to other channels.

However, the company has not posted much content on Instagram. The shoe company should invest more in social media ads to boost its content or create more shareable content such as a fundraiser, hashtag campaign, or contest.

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Understanding Your Target Audience

Knowing your target audience will help you understand which marketing funnels to target and how to analyze the data you receive. Your target audience will dictate the type of content you produce and which channels or social media platforms you are putting the most capital into promoting.

Any successful marketing campaign will know a target market's demographic trends, interests, dislikes, and popular social media platforms. It is important to know the social media of choice for each demographic to streamline your social media marketing efforts.

Luckily, case studies are available outlining a target audience's eccentricities, and great digital marketers study popular content that gets engagement from their target audience to see which posts get the most engagement.

If you are trying to target Generation Z, for instance, you should see more clicks and engagement on TikTok versus a Facebook page. Moreover, your content should be geared more toward that audience.

At the moment, Gen Z is interested in low-rise jeans, middle parts, LGBTQ culture, ...(etc.) All of this data is useful for aligning your content to speak to your target audience. As Gen Z would put it, your target audience should "feel seen."

Collecting Data

Once you know your business goals and target market, you can collect and analyze data. Web analytics tools, such as Google Analytics, are great ways to gather important demographic data of your web traffic to see if you are reaching your conversion goals as well as attracting your target market.

Collecting data, adjusting your ad spend, and tweaking your overall marketing strategy is key to optimizing your marketing.

Once you gather marketing data, organize it and look at the conversion rates of each point of the sales funnel to ensure that there are no bottlenecks. The most important metric to look for are called Key Performance Indicators (KPIs). Popular KPIs include:

These metrics are an important puzzle piece in the picture of the consumer's sales journey. However, they do not indicate what the users did following the engagement. Did they purchase the product? Did they share it with a friend? Are they still interested? After gathering key metrics, marketers focus on marketing performance optimization.

Marketing Performance Optimization

Marketing optimization is a process by which ad spending is tweaked to find the amount that generates the most net revenue. For instance, a company that spends $200/week on Google AdWords could find that they achieve the same number of sales if they cut their spending to $160.

In this instance, the company would increase net revenue by $40 and have a more efficient marketing strategy.

This is called "performance marketing." Performance marketing is becoming increasingly popular because it requires less upfront investment into ad campaigns without jeopardizing results. Sometimes, however, increased paid advertisements result in more profit for a company.

In some instances, marketing optimization requires more money spent on ads. For example, a company could be spending $200 on ads. One week they increase their spending to $300. After increasing their ad spend, their sales jump $300 more than the week prior. As a result, their net profit increased by $200.

How to Start Optimizing Marketing Campaigns

After your business outlines its yearly goals and studies its target audience, you can begin optimizing your marketing campaign. Optimizing your marketing campaign requires you to collect data from multiple marketing channels such as social media platforms, outreach emails, SERP, and location-based targeting.

Social Media Marketing

Social media marketing can help a business with brand building and awareness. Most importantly, discover which social media platforms are appropriate for your business. If you want to portray a professional image, stick to sites such as LinkedIn or Twitter.

However, if you have a younger target demographic, increase your presence on apps like TikTok, Instagram, or Snapchat.

Boost SEO Performance

25% of people click the first result on a Google search. Therefore, improving your website's position on a SERP is crucial to gaining more organic traffic and increasing sales. Methods to boost SEO performance include studying and targeting keywords, improving technical SEO, and link baiting.

Email Marketing

Outreach emails are extremely effective tools. Moreover, they are also cheap and do not require money to send. Moreover, most people check their email 15 times per day.

A study conducted by Litmus, email marketing industry leader, revealed that entrepreneurs get “a whopping $36 for every $1 spent” on their email marketing. One easy way to increase sales from your email campaigns is by incorporating Deadline Funnel into your live launches and evergreen promos alike.

Additionally, when you collect information for your mailing list, you can ask for key demographic data such as age and sex. After collecting the data, you can send emails that align with their particular demographic.

Location-Based Targeting

Location-based targeting includes creating ads that are specific to a person's city or state. For example, in the early 2000s Ford Trucks released an ad campaign specific for Texas residents, which stated, "Ford is the Best in Texas."

This campaign perfectly demonstrates location-based targeting because it would be inappropriate to release in a Maine province.

Personalized Marketing Campaign Optimization

Personalized marketing campaign optimization allows you to tailor your spending to achieve the most revenue from your target markets.

By using analytics tools, you have the power to reach new potential customers and increase your overall revenue without increasing your ad spending. Perhaps you may even be able to decrease your spending toward paid advertising.

Marketing optimization is still a new process that allows smaller companies to compete alongside larger firms through the use of highly targeted and sophisticated campaigns. To take advantage of marketing optimization, it is essential to define your company goals and analyze key metrics.

Once you optimize your marketing, your business has the potential to reach new heights regardless of its size. Do not waste valuable time and optimize your marketing today.

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