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Digital Marketing for Businesses: How It Increases Return-on-Ad-Spend

Digital Marketing for Businesses: How It Increases Return-on-Ad-Spend

Written by Les Seow May 2023

While there are almost 2 billion websites on the internet, less than 200 million of them are active. If you want to have any chance against this competition, you’ll have to think about your digital marketing strategy. To enhance your business’s digital marketing, incorporating online Ads (i.e., Google Ads or Facebook Ads) is one of the most effective strategies.

You can make this easier by increasing your return-on-Ad spend.  But how can you do this? What steps can you take to boost your profits after running Ads?

return of ad spend formula

Continue reading and discover ways to enhance your Google Ads and Facebook Ads, along with your lead generation efforts.

Reduce the Cost of your Ads

Ad pricing can vary depending on the type of Ad you’re paying for. Some might cost a few cents every time the Ad shows up or gets clicked on. More advanced Ads may cost several dollars or more.

If you’re trying to run a digital marketing campaign, you don’t want to drain your wallet into Ads. It’s crucial to ensure that your advertisements generate a favorable return. Otherwise, they’ll act as a black hole for your finances.

This is why you need to keep track of your digital marketing spend. It’s important to carefully monitor the amount of money being spent on Ads. You can then use that number to determine your measure of success.


Key metrics in measuring digital marketing ad spend infographic


If you spend a lot of money on Ads and get very little in return, this is a problem. The issue might be related to the type of Ads you are utilizing. Or it’s possible that there’s an issue with your digital marketing campaign.

How It Works

Identify the underlying issue and determine why your Ads are not performing as expected. Once you do that, you can choose better Ads. To optimize your budget, it’s recommended to reduce spending on advertisements.

Spending less is always ideal. This is because there is a better chance that you will generate a better return compared to what you spent on your Ads. This is the goal when paying for Ads.

Once you get a larger return, you can use that money to invest back in more Ad spend. By keeping this cycle going, you’ll be able to rapidly enhance your business. Browse around until you find Ads that fit your budget and are efficient at the same time.

Improve the Conversions Your Ads Generate

Ads are all about conversions. The meaning of “conversion” varies depending on the type of Ad you’re running. An Ad conversion might be something as simple as someone clicking on the Ad and going to your website.


4 common types of conversions in digital marketing


A conversion might include someone interacting with the Ad in another way. When someone clicks on your Ad and lands on your website, it’s always a positive outcome. You want as many of these conversions as possible.

This is because these conversions will bring more business to your site. When people arrive at your site, there is a chance that they will like what they see. They may browse your products or services and decide that they are in the market for those things.

Once they buy something from you, this is the start of something very significant.

Attracting More Customers

If one person is interested in your products, there is a good chance that many other people will be too. This will lead to a steady stream of income from new customers.

Some of them may become repeat customers and give you even more business. This could make your business a serious success. It all begins with a few straightforward Ad conversions.

To improve your return-on-Ad spend, focus on enhancing your conversions. Enhancing the appeal of your advertisements can help accomplish this. The more eye-catching your Ads appear, the more appealing they will be to potential customers.

5 hacks to enhance the appeal of your Digital Ads to Prospects

But if your Ads are bland and uninformative, you might have a hard time making conversions. It’s possible that you may need to experiment with different approaches before finding the ideal formula for your advertisements. You can then narrow down your options and see which Ads work best.

This should help you improve your conversions and your return-on-Ad spend.

Take a Closer Look at the Data

The data that your Ads generate can be very helpful for improving your return-on-Ad spend. Consider how this data changes over time. How many impressions do your Ads get?

How many conversions do they get? Do certain types of Ads do better than others? Suppose your Google Ads do much better than your Facebook Ads. It would make sense to stop advertising on Facebook and put more of your energy into Google Ads.

This would allow you to focus your funds and energy in one place. By doing this, you can increase the potential success of your Ads. This is an easy way to make more money with your Ads.

This allows you to easily break even on what you paid for the Ads with what you earned. You can then put the extra money back into more Ads and expand your success.

How to Improve Your Return-on-Ad Spend

If you improve your return-on-Ad spend, it will make it much easier and affordable for you to keep advertising. Start by investing in more affordable Ads and examining Ad data.

Improve the conversions your Ads generate as well. All this will attract more high quality traffic, more sales and more money. Are you prepared to begin your digital marketing journey for your business?

Discover how our profitable Google and Facebook Ads services can take your business to the next level. Book a free 30 min discovery session now.

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Case Study: Facebook Advertising

Case Study: Facebook Advertising

Home » facebook ads

Updated By Les. Jan 2022

Who is Freeflo?

Freeflo Plumbing and Gas was launched in 2017 with the intention of becoming the #1 plumbing and gas maintenance services provider in Perth West Australia. Freeflo’s client base consisted of both commercial and residential customers.

In late 2018, Freeflo engaged Valles Digital Marketing to undertake a major brand awareness campaign. The purpose of this campaign was to engage with as many potential customers as possible by demonstrating its capability, experience, expertise and value. Freeflo’s business website formed an integral part of the campaign. Freeflo understood who their customers were but the business was unclear on how to further raise their online presence:

  1. What messages would most resonate?
  2. Where best to advertise online?
  3. Which digital advertising platform is most suitable?

The Action

As Freeflo already had a Facebook business page, the business decided to use this platform as the base for their brand awareness campaign.

The campaign consisted of:

  1. Strengthening their Facebook business page including updating it with relevant company details, services, images and contact information.
  2. Creating and posting 16 value-add page posts with images over a 3 month period that demonstrated their technical capability, skill and experience:
      • On average there were 5 posts per month.
      • 30% of posts demonstrated actual completed work.
  3. Undertaking a 3 month Facebook advertising brand awareness campaign involving 15 Ads to further boost their presence on Facebook and generate website traffic. The Ads ran daily with targeted audiences. On average, there were 5 Ads running in any month including A/B Testing. The Ads were grouped under the following topics:
      • Emergency Plumbing
      • Local Plumber
      • Hot Water System Installation
      • Water Filter Installation

The Result

Before the campaign, Freeflo Facebook page had 119 followers.

After the campaign:

This Facebook advertising case study results highlight that if used strategically, Facebook is an excellent platform to grow brand awareness not only for page followers but more importantly potential customers. With the short 3 month campaign, we believe the key objectives of increasing Freeflo’s Facebook presence and website traffic were met. Freeflo experienced a 23% increase in contact requests from their website since the campaign ceased. Fast-forward to today, Freeflo’s Facebook page now has 529 followers and growing. That is a whopping 184% growth in page followers since the campaign ended.

We’ve been really pleased and grateful to have assisted Freeflo. This Facebook marketing case study highlighted that the extended market reach through a combination of Facebook Page posts and Ads have boosted Freeflo’s good name, capability, experience and skills in the market.

Note that a lot of businesses use social media data as business intelligence. You can read more about this in our blog titled Business Intelligence and Social Media.

If you’re looking for top Facebook tips, then download our Facebook Page Hacks here.

You can also find more details about our Facebook Ads management service here.

For the visually impaired, here is an audio version of this blog.

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