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How to Calculate Marketing ROI [+Free Excel Templates]

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How to Calculate Marketing ROI [+Free Excel Templates]

If you can prove that your marketing activities actually made an impact on your business, you’ll have many more opportunities (and budget) to grow your marketing efforts. Sounds like a marketer’s dream, right?

But how do you find the right metrics to measure and prove marketing ROI to your boss and stakeholders? With the help of this guide and a free marketing ROI excel template, you’ll learn how to calculate your marketing ROI with Excel to secure more resources for your marketing team.

Marketing Reporting Templates

For example, if you’ve been running an $800 marketing campaign for three months, and average sales revenue was $2,400 for those three months, your marketing ROI would be:

200% = ($2,400 – $800)/$800

If math isn’t your cup of tea, use a marketing ROI calculator to do the heavy lifting. The free ROI calculator below considers five factors of your marketing campaign to produce an accurate ROI percentage for your marketing efforts.

Marketing ROI Calculator

HubSpot's Marketing ROI Calculator

Calculate Your Marketing ROI Free

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Pro Tip: if you’re a HubSpot customer, you can use this ROI calculator programmed with the same formula.

Calculating ROI the old fashioned way in Excel is still the most popular method for good reason. By using Excel, you can keep track of ROI overtime to run comparisons, identify gaps, and optimize your marketing efforts.

Here’s a guide for calculating marketing ROI in excel.

How to Calculate ROI in Excel

Excel is one of the most accessible ways to calculate return on investment in a matter of seconds. You don’t have to make up any fancy formulas or commands — just follow these steps to calculate your marketing ROI.

Step 1: Write down your formula.

You won’t be able to enter this formula as-is into your spreadsheet, but understanding the formula before opening Excel will be helpful. By taking note of the formula below, you’ll know which cells to include in your Excel formula so that you calculate your numbers correctly.

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(Sales Revenue – Marketing Cost)/Marketing Cost

Step 2: Add variables.

Open your Excel spreadsheet and add one row for your sales revenue and one row for marketing costs. In the next column over, include how much sales revenue your marketing campaign generated. Then, under that, add how much your marketing team spent on the campaign.

In the example below, our sales revenue was $50,000 and marketing costs were $12,500. Right away, we know that the campaign generated more money than was spent on it, so that’s a great sign of high ROI.

1647524028 569 How to Calculate Marketing ROI Free Excel Templates

Step 3: Add the formula

Once you’ve added your revenue and cost numbers, select a free cell to type in the formula using your data. In this example, we chose the cell right below the revenue and cost numbers. Here’s how the formula translates into Excel:

  • Sales Revenue is in cell B2
  • Marketing Cost is in cell B3

(Sales Revenue – Marketing Costs) / Marketing Costs =

(B2 – B3) / B3

1647524028 120 How to Calculate Marketing ROI Free Excel Templates

Step 4: Calculate marketing ROI.

Tap enter or return on your keyboard to calculate your ROI.

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If the formula doesn’t automatically calculate it as a percentage, change the number format by going to the Home Tab > Number > Percentage.

1647524028 807 How to Calculate Marketing ROI Free Excel Templates

Step 5: Communicate the ROI

Now that you know the ROI on this marketing campaign was 300%, how do you communicate this to your stakeholders so that they know whether or not 300% was successful? With any statistic, it’s important to give context for the data you discover. For ROI, you can communicate it like this:

“Our return on investment for the latest marketing campaign was 300%. That means for every dollar we spent in marketing costs, we made $3 in revenue. Compared to our past marketing campaigns that had an ROI of 200%, this was our most successful one to date.”

Calculating Marketing ROI with Attribution Variables

Figuring out your return on investment when attribution isn’t as black and white requires a slightly different approach.

For example, over a 12-month campaign, the sales team may inform the marketing team that 10% of the sales revenue came from leads that were organically prospected on the sales team and weren’t impacted by marketing’s efforts. This is an example of varying attribution of revenue and is a common problem that marketing and sales teams face. In other words: Who really gets the credit for revenue generated?

Depending on the thresholds set by both teams, you can add attribution as a this variable along with the original factors using this ROI equation:

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(Sales Revenue – Organic Sales Revenue – Marketing Cost)/Marketing CostHow to calculate marketing ROI with attribution variables

To calculate the ROI, tap enter or return on your keyboard and you’ll have a more precise ROI metric that attributes credit to the sales team for revenue they generated without the help of marketing.How to calculate marketing ROI with attribution variables, percentage

After accounting for organic sales revenue, the marketing team’s ROI was a bit lower at 220%. To communicate this to stakeholders, you might say:

“Sales revenue for the past 12 months was $50,000. The sales team generated $10,000 of that revenue through organic efforts like prospecting. The marketing team’s campaign contributed to the other $40,000 in revenue resulting in a 220% ROI. That means for every dollar we spent in marketing costs, we made $2.20 in revenue. Compared to our past marketing campaigns that had an ROI of less than 200%, this was very successful.”

Now that we’ve reviewed a couple of examples, let’s walk through which metrics you should track to measure ROI for your marketing campaigns.

Not all metrics are equal when it comes to ROI, so you’re going to need to tell a story with the right data. Here are the top metrics to tack when measuring marketing ROI.

1. Reach

Reach is an important metric to track for advertising spend, especially for digital ads. This metric determines how many individual people saw your marketing campaign content.

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If your campaign has a goal of increasing brand awareness within a large target audience, you’ll want to look at reach to make sure you’re reaching many different people rather than the same person a few thousand times.

2. Impressions

Impressions tell you how many times your marketing content was viewed. They don’t, however, don’t take into account whether the users were unique or not. Depending on your campaign goals, this metric can indicate how efficient your campaign was at spending money compared to how many times campaign assets were seen.

If your campaign goal is to guide customers through a traditional marketing funnel, repeat exposure to an ad is a key part of doing this successfully and impressions is one metric you can use to track this.

3. Visits

Your website is one of the most important marketing assets your team manages. Every time a person visits your site, they have an opportunity to become a customer and spend money with your business.

Measuring the ROI of a new website redesign using visits as a metric can give your team insight into whether the new design is working, whether SEO has improved and brought in more traffic, and more.

4. Leads

Acquiring leads can get expensive if your marketing strategy isn’t up to par. Determining ROI on lead acquisition is critical as the goal is to keep Cost Per Lead (CPL) in line with your company’s revenue goals.

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It’s a good idea to develop a service level agreement (SLA) with the sales team to determine how much marketing is willing to spend on leads vs. the customer lifetime value (CLV).

5. Conversion Rates

A conversion rate details the percentage of people who take a specific action on one of your marketing assets. This could be clicking a CTA on your website, making a purchase, or signing up for a newsletter.

It’s common for a marketing team to manage several conversion paths, thus having several conversion rates to keep track of. As a result, you’ll have a different ROI for each conversion.

To measure which conversions have the best ROI, you’ll need to determine how much it costs to get a customer to the point of conversion (i.e. Did you use paid ads or organic traffic to get visitors to convert?) and how much that conversion is worth (if the conversion is a purchase, then you’d use the purchase price).

6. Customer Lifetime Value (CLV)

Believe it or not, customers are valued based on how much they spend, how many purchases they make, how often they engage with CTAs, content, and more. Your company can set the criteria for a customer’s value. Once you’ve determined this, CLV can be calculated using this formula.

CLV is a useful variable to include when calculating your marketing ROI because it compares how much you spend on marketing campaigns compared to how much money a customer is worth to the business throughout the customer life cycle.

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7. Return on Ad Spend (ROAS)

Sometimes marketing campaigns rely heavily if not solely on paid digital advertisements. These ads can take many forms including search ads, display ads, social media ads, and more.

Return on Ad Spend (ROAS) is a type of ROI metric that lets you know how efficiently you’re spending your advertising dollars. The formula is the exact same as the ROI formula we shared earlier, except it only measures paid advertising dollars rather than all marketing spend which could include costs for contractors, agencies, and other functions that help launch your campaign.

If you’re curious about where your ROAS stands right now, use this free ROAS calculator to get an idea.

8. Cost Per Lead (CPL)

Cost Per Lead is a metric that marketers use to measure how many interested prospects their campaign is gaining. A lead doesn’t make a purchase. Instead, they exchange information for access to a business’s content or offers. This information can be an email address, phone number, survey, or something else that is not monetary.

What’s considered a high or low CPL varies widely by industry, company, and even campaign to campaign. Factors like copy, design, site speed, landing page content, and more can affect your CPL numbers.

9. Cost Per Acquisition (CPA)

Similar to Cost Per Lead, Cost Per Acquisition measures how many people take an action to purchase your product. An acquisition is usually identified by a visitor entering their card information to sign up for a free or discounted trial. They may also make a purchase outright.

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10. Lead Close Rate

Your lead close rate is best described as the number of leads who turn into customers. Ideally, every marketer wants every lead to become a customer, resulting in a 100% lead close rate, but that’s unrealistic. Just like CPL and CPA, the lead close rate can vary widely among industries, companies, and campaigns.

Tracking this metric can identify gaps in your marketing campaign. If you notice many of your leads are not returning to make a purchase, you can identify another touch point to reach them or try retargeting them with a different ad that leads them to make a purchase.

For more marketing metrics to measure for ROI, take a look at our marketing metrics template.

How to Create Your Own Marketing Metrics Report

So now you know what metrics you need, but what about generating a report to share these metrics? Trust me, nobody wants to receive a spreadsheet and be expected to read it front and back. Even if your marketing ROI is 1000%+ day over day, you’ll probably receive a lackluster response from your stakeholders if you don’t tell a story with the data.

Follow these steps to create an engaging marketing metrics report.

Step 1: Follow along by downloading a free monthly marketing reporting template for Excel and PowerPoint.

Step 1: Follow along by downloading a free monthly marketing reporting template for Excel and PowerPoint.

Step 2: Open Excel and add your metrics.

The equations and graphs will automatically populate and adjust based on the metrics you add.

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How to Create Your Own Marketing Metrics Report Step 2: Open Excel and add your metrics

Step 3: Copy the graphs and paste them into PowerPoint.

Right click on the graph you want to copy and select Copy.

How to Create Your Own Marketing Metrics Report Step 3: Copy the graphs and place them into Excel

Then open your PowerPoint slide deck and click Paste where you want the graph to go.

free marketing template graphs in PowerPoint

Step 4: Customize your graphs and charts to fit your company’s brand.

Click on individual elements in the graph to customize them.

How to Create Your Own Marketing Metrics Report Step 5: Customize the graphs and charts to fit your company's brand

Step 5: Add context to tell a story with your data.

Add content to each slide that explains your marketing team’s success from the past month. For example, if you have a blog post that drove a lot of leads, you could include a photo of the post along with a few takeaways. These specific examples give context to your presentation and justify why your marketing efforts worked and how you can repeat this success in your next campaign.

How to Create Your Own Marketing Metrics Report Step 5: Add context to tell a story with you data

ROI Excel Templates

Excel is one of the best tools to use when tracking and calculating ROI regularly. Here’s a collection of marketing ROI excel templates so you can report your metrics like a pro.

1. Reach Marketing ROI Excel Template

Calculate your marketing campaign’s reach with this ROI template. You can measure the reach of your blog, email, and social media content.

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Reach Marketing ROI Excel Template

2. Website Visits Marketing ROI Excel Template

With this template, you can calculate your website visits via sources and channels including paid traffic, direct traffic, and social media referrals.

Website Visits Marketing ROI Excel Template

3. Leads Marketing ROI Excel Template

See how many leads are generated with your marketing campaigns with this excel ROI template. These results are segmented by source.

Leads Marketing ROI Excel Template

4. Acquisition Marketing ROI Excel Template

Use this template to track how many customers your campaign acquired, segmented by traffic source.

Acquisition Marketing ROI Excel Template

5. Conversion Rate Marketing ROI Excel Template

Identify how many leads converted to customers as a result of your marketing campaign with the conversion rate marketing ROI excel template.

Conversion Rate Marketing ROI Excel Template

Optimize Your Marketing Campaigns for Higher ROI

Businesses can make a lot of assumptions about how well marketing campaigns perform, but without the ROI data to back it up, they’re just that — assumptions. Get your excel sheet or marketing ROI calculator out and follow this guide to really understand how well your campaigns are doing. You may even be able to make a case for a larger budget, additional headcount, or more resources to market your product or service even better.

Editor’s note: This post was originally published in September 2013 and has been updated for comprehensiveness.

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MARKETING

How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

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How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

It’s the age of AI, and our job as marketers is to keep up.

My team at Foundation Marketing recently conducted an AI Marketing study surveying hundreds of marketers, and more than 84% of all leaders, managers, SEO experts, and specialists confirmed that they used AI in the workplace.

AI in the workplace data graphic, Foundation Labs

If you can overlook the fear-inducing headlines, this technology is making social media marketers more efficient and effective than ever. Translation: AI is good news for social media marketers.

Download Now: The 2024 State of Social Media Trends [Free Report]

In fact, I predict that the marketers not using AI in their workplace will be using it before the end of this year, and that number will move closer and closer to 100%.

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Social media and AI are two of the most revolutionizing technologies of the last few decades. Social media has changed the way we live, and AI is changing the way we work.

So, I’m going to condense and share the data, research, tools, and strategies that the Foundation Marketing Team and I have been working on over the last year to help you better wield the collective power of AI and social media.

Let’s jump into it.

What’s the role of AI in social marketing strategy?

In a recent episode of my podcast, Create Like The Greats, we dove into some fascinating findings about the impact of AI on marketers and social media professionals. Take a listen here:

Let’s dive a bit deeper into the benefits of this technology:

Benefits of AI in Social Media Strategy

AI is to social media what a conductor is to an orchestra — it brings everything together with precision and purpose. The applications of AI in a social media strategy are vast, but the virtuosos are few who can wield its potential to its fullest.

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AI to Conduct Customer Research

Imagine you’re a modern-day Indiana Jones, not dodging boulders or battling snakes, but rather navigating the vast, wild terrain of consumer preferences, trends, and feedback.

This is where AI thrives.

Using social media data, from posts on X to comments and shares, AI can take this information and turn it into insights surrounding your business and industry. Let’s say for example you’re a business that has 2,000 customer reviews on Google, Yelp, or a software review site like Capterra.

Leveraging AI you can now have all 2,000 of these customer reviews analyzed and summarized into an insightful report in a matter of minutes. You simply need to download all of them into a doc and then upload them to your favorite Generative Pre-trained Transformer (GPT) to get the insights and data you need.

But that’s not all.

You can become a Prompt Engineer and write ChatGPT asking it to help you better understand your audience. For example, if you’re trying to come up with a persona for people who enjoy marathons but also love kombucha you could write a prompt like this to ChatGPT:

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ChatGPT prompt example

The response that ChatGPT provided back is quite good:

GPT response example

Below this it went even deeper by including a lot of valuable customer research data:

  • Demographics
  • Psychographics
  • Consumer behaviors
  • Needs and preferences

And best of all…

It also included marketing recommendations.

The power of AI is unbelievable.

Social Media Content Using AI

AI’s helping hand can be unburdening for the creative spirit.

Instead of marketers having to come up with new copy every single month for posts, AI Social Caption generators are making it easier than ever to craft catchy status updates in the matter of seconds.

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Tools like HubSpot make it as easy as clicking a button and telling the AI tool what you’re looking to create a post about:

AI social media caption generator step 1

The best part of these AI tools is that they’re not limited to one channel.

Your AI social media content assistant can help you with LinkedIn content, X content, Facebook content, and even the captions that support your post on Instagram.

It can also help you navigate hashtags:

AI social media hashtags generator example, HubSpot

With AI social media tools that generate content ideas or even write posts, it’s not about robots replacing humans. It’s about making sure that the human creators on your team are focused on what really matters — adding that irreplaceable human touch.

Enhanced Personalization

You know that feeling when a brand gets you, like, really gets you?

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AI makes that possible through targeted content that’s tailored with a level of personalization you’d think was fortune-telling if the data didn’t paint a starker, more rational picture.

What do I mean?

Brands can engage more quickly with AI than ever before. In the early 2000s, a lot of brands spent millions of dollars to create social media listening rooms where they would hire social media managers to find and engage with any conversation happening online.

Thanks to AI, brands now have the ability to do this at scale with much fewer people all while still delivering quality engagement with the recipient.

Analytics and Insights

Tapping into AI to dissect the data gives you a CSI-like precision to figure out what works, what doesn’t, and what makes your audience tick. It’s the difference between guessing and knowing.

The best part about AI is that it can give you almost any expert at your fingertips.

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If you run a report surrounding the results of your social media content strategy directly from a site like LinkedIn, AI can review the top posts you’ve shared and give you clear feedback on what type of content is performing, why you should create more of it, and what days of the week your content is performing best.

This type of insight that would typically take hours to understand.

Now …

Thanks to the power of AI you can upload a spreadsheet filled with rows and columns of data just to be met with a handful of valuable insights a few minutes later.

Improved Customer Service

Want 24/7 support for your customers?

It’s now possible without human touch.

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Chatbots powered by AI are taking the lead on direct messaging experiences for brands on Facebook and other Meta properties to offer round-the-clock assistance.

The fact that AI can be trained on past customer queries and data to inform future queries and problems is a powerful development for social media managers.

Advertising on Social Media with AI

The majority of ad networks have used some variation of AI to manage their bidding system for years. Now, thanks to AI and its ability to be incorporated in more tools, brands are now able to use AI to create better and more interesting ad campaigns than ever before.

Brands can use AI to create images using tools like Midjourney and DALL-E in seconds.

Brands can use AI to create better copy for their social media ads.

Brands can use AI tools to support their bidding strategies.

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The power of AI and social media is continuing to evolve daily and it’s not exclusively found in the organic side of the coin. Paid media on social media is being shaken up due to AI just the same.

How to Implement AI into Your Social Media Strategy

Ready to hit “Go” on your AI-powered social media revolution?

Don’t just start the engine and hope for the best. Remember the importance of building a strategy first. In this video, you can learn some of the most important factors ranging from (but not limited to) SMART goals and leveraging influencers in your day-to-day work:

The following seven steps are crucial to building a social media strategy:

  1. Identify Your AI and Social Media Goals
  2. Validate Your AI-Related Assumptions
  3. Conduct Persona and Audience Research
  4. Select the Right Social Channels
  5. Identify Key Metrics and KPIs
  6. Choose the Right AI Tools
  7. Evaluate and Refine Your Social Media and AI Strategy

Keep reading, roll up your sleeves, and follow this roadmap:

1. Identify Your AI and Social Media Goals

If you’re just dipping your toes into the AI sea, start by defining clear objectives.

Is it to boost engagement? Streamline your content creation? Or simply understand your audience better? It’s important that you spend time understanding what you want to achieve.

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For example, say you’re a content marketing agency like Foundation and you’re trying to increase your presence on LinkedIn. The specificity of this goal will help you understand the initiatives you want to achieve and determine which AI tools could help you make that happen.

Are there AI tools that will help you create content more efficiently? Are there AI tools that will help you optimize LinkedIn Ads? Are there AI tools that can help with content repurposing? All of these things are possible and having a goal clearly identified will help maximize the impact. Learn more in this Foundation Marketing piece on incorporating AI into your content workflow.

Once you have identified your goals, it’s time to get your team on board and assess what tools are available in the market.

Recommended Resources:

2. Validate Your AI-Related Assumptions

Assumptions are dangerous — especially when it comes to implementing new tech.

Don’t assume AI is going to fix all your problems.

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Instead, start with small experiments and track their progress carefully.

3. Conduct Persona and Audience Research

Social media isn’t something that you can just jump into.

You need to understand your audience and ideal customers. AI can help with this, but you’ll need to be familiar with best practices. If you need a primer, this will help:

Once you understand the basics, consider ways in which AI can augment your approach.

4. Select the Right Social Channels

Not every social media channel is the same.

It’s important that you understand what channel is right for you and embrace it.

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The way you use AI for X is going to be different from the way you use AI for LinkedIn. On X, you might use AI to help you develop a long-form thread that is filled with facts and figures. On LinkedIn however, you might use AI to repurpose a blog post and turn it into a carousel PDF. The content that works on X and that AI can facilitate creating is different from the content that you can create and use on LinkedIn.

The audiences are different.

The content formats are different.

So operate and create a plan accordingly.

Recommended Tools and Resources:

5. Identify Key Metrics and KPIs

What metrics are you trying to influence the most?

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Spend time understanding the social media metrics that matter to your business and make sure that they’re prioritized as you think about the ways in which you use AI.

These are a few that matter most:

  • Reach: Post reach signifies the count of unique users who viewed your post. How much of your content truly makes its way to users’ feeds?
  • Clicks: This refers to the number of clicks on your content or account. Monitoring clicks per campaign is crucial for grasping what sparks curiosity or motivates people to make a purchase.
  • Engagement: The total social interactions divided by the number of impressions. This metric reveals how effectively your audience perceives you and their readiness to engage.

Of course, it’s going to depend greatly on your business.

But with this information, you can ensure that your AI social media strategy is rooted in goals.

6. Choose the Right AI Tools

The AI landscape is filled with trash and treasure.

Pick AI tools that are most likely to align with your needs and your level of tech-savviness.

For example, if you’re a blogger creating content about pizza recipes, you can use HubSpot’s AI social caption generator to write the message on your behalf:

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AI social media generator example

The benefit of an AI tool like HubSpot and the caption generator is that what at one point took 30-40 minutes to come up with — you can now have it at your fingertips in seconds. The HubSpot AI caption generator is trained on tons of data around social media content and makes it easy for you to get inspiration or final drafts on what can be used to create great content.

Consider your budget, the learning curve, and what kind of support the tool offers.

7. Evaluate and Refine Your Social Media and AI Strategy

AI isn’t a magic wand; it’s a set of complex tools and technology.

You need to be willing to pivot as things come to fruition.

If you notice that a certain activity is falling flat, consider how AI can support that process.

Did you notice that your engagement isn’t where you want it to be? Consider using an AI tool to assist with crafting more engaging social media posts.

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Make AI Work for You — Now and in the Future

AI has the power to revolutionize your social media strategy in ways you may have never thought possible. With its ability to conduct customer research, create personalized content, and so much more, thinking about the future of social media is fascinating.

We’re going through one of the most interesting times in history.

Stay equipped to ride the way of AI and ensure that you’re embracing the best practices outlined in this piece to get the most out of the technology.

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Advertising in local markets: A playbook for success

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Advertising in local markets: A playbook for success

Many brands, such as those in the home services industry or a local grocery chain, market to specific locations, cities or regions. There are also national brands that want to expand in specific local markets. 

Regardless of the company or purpose, advertising on a local scale has different tactics than on a national scale. Brands need to connect their messaging directly with the specific communities they serve and media to their target demo. Here’s a playbook to help your company succeed when marketing on a local scale.  

1. Understand local vs. national campaigns

Local advertising differs from national campaigns in several ways: 

  • Audience specificity: By zooming in on precise geographic areas, brands can tailor messaging to align with local communities’ customs, preferences and nuances. This precision targeting ensures that your message resonates with the right target audience.
  • Budget friendliness: Local advertising is often more accessible for small businesses. Local campaign costs are lower, enabling brands to invest strategically within targeted locales. This budget-friendly nature does not diminish the need for strategic planning; instead, it emphasizes allocating resources wisely to maximize returns. As a result, testing budgets can be allocated across multiple markets to maximize learnings for further market expansion.
  • Channel selection: Selecting the correct channels is vital for effective local advertising. Local newspapers, radio stations, digital platforms and community events each offer advantages. The key lies in understanding where your target audience spends time and focusing efforts to ensure optimal engagement.
  • Flexibility and agility: Local campaigns can be adjusted more swiftly in response to market feedback or changes, allowing brands to stay relevant and responsive. 

Maintaining brand consistency across local touchpoints reinforces brand identity and builds a strong, recognizable brand across markets. 

2. Leverage customized audience segmentation 

Customized audience segmentation is the process of dividing a market into distinct groups based on specific demographic criteria. This marketing segmentation supports the development of targeted messaging and media plans for local markets. 

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For example, a coffee chain might cater to two distinct segments: young professionals and retirees. After identifying these segments, the chain can craft messages, offers and media strategies relating to each group’s preferences and lifestyle.

To reach young professionals in downtown areas, the chain might focus on convenience, quality coffee and a vibrant atmosphere that is conducive to work and socializing. Targeted advertising on Facebook, Instagram or Connected TV, along with digital signage near office complexes, could capture the attention of this demographic, emphasizing quick service and premium blends.

Conversely, for retirees in residential areas, the chain could highlight a cozy ambiance, friendly service and promotions such as senior discounts. Advertisements in local print publications, community newsletters, radio stations and events like senior coffee mornings would foster a sense of community and belonging.

Dig deeper: Niche advertising: 7 actionable tactics for targeted marketing

3. Adapt to local market dynamics

Various factors influence local market dynamics. Brands that navigate changes effectively maintain a strong audience connection and stay ahead in the market. Here’s how consumer sentiment and behavior may evolve within a local market and the corresponding adjustments brands can make. 

  • Cultural shifts, such as changes in demographics or societal norms, can alter consumer preferences within a local community. For example, a neighborhood experiencing gentrification may see demand rise for specific products or services.
    • Respond by updating your messaging to reflect the evolving cultural landscape, ensuring it resonates with the new demographic profile.
  • Economic conditions are crucial. For example, during downturns, consumers often prioritize value and practicality.
    • Highlight affordable options or emphasize the practical benefits of your offerings to ensure messaging aligns with consumers’ financial priorities. The impact is unique to each market and the marketing message must also be dynamic.
  • Seasonal trends impact consumer behavior.
    • Align your promotions and creative content with changing seasons or local events to make your offerings timely and relevant.
  • New competitors. The competitive landscape demands vigilance because new entrants or innovative competitor campaigns can shift consumer preferences.
    • Differentiate by focusing on your unique selling propositions, such as quality, customer service or community involvement, to retain consumer interest and loyalty.

4. Apply data and predictive analytics 

Data and predictive analytics are indispensable tools for successfully reaching local target markets. These technologies provide consumer behavior insights, enabling you to anticipate market trends and adjust strategies proactively. 

  • Price optimization: By analyzing consumer demand, competitor pricing and market conditions, data analytics enables you to set prices that attract customers while ensuring profitability.
  • Competitor analysis: Through analysis, brands can understand their positioning within the local market landscape and identify opportunities and threats. Predictive analytics offer foresight into competitors’ potential moves, allowing you to strategize effectively to maintain a competitive edge.
  • Consumer behavior: Forecasting consumer behavior allows your brand to tailor offerings and marketing messages to meet evolving consumer needs and enhance engagement.
  • Marketing effectiveness: Analytics track the success of advertising campaigns, providing insights into which strategies drive conversions and sales. This feedback loop enables continuous optimization of marketing efforts for maximum impact.
  • Inventory management: In supply chain management, data analytics predict demand fluctuations, ensuring inventory levels align with market needs. This efficiency prevents stockouts or excess inventory, optimizing operational costs and meeting consumer expectations.

Dig deeper: Why you should add predictive modeling to your marketing mix

5. Counter external market influences

Consider a clothing retailer preparing for a spring collection launch. By analyzing historical weather data and using predictive analytics, the brand forecasts an unseasonably cool start to spring. Anticipating this, the retailer adjusts its campaign to highlight transitional pieces suitable for cooler weather, ensuring relevance despite an unexpected chill.

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Simultaneously, predictive models signal an upcoming spike in local media advertising rates due to increased market demand. Retailers respond by reallocating a portion of advertising budgets to digital channels, which offer more flexibility and lower costs than traditional media. This shift enables brands to maintain visibility and engagement without exceeding budget, mitigating the impact of external forces on advertising.

6. Build consumer confidence with messaging

Localized messaging and tailored customer service enhance consumer confidence by demonstrating your brand’s understanding of the community. For instance, a grocery store that curates cooking classes featuring local cuisine or sponsors community events shows commitment to local culture and consumer interests. 

Similarly, a bookstore highlighting local authors or topics relevant to the community resonates with local customers. Additionally, providing service that addresses local needs — such as bilingual service and local event support — reinforces the brand’s values and response to the community. 

Through these localized approaches, brands can build trust and loyalty, bridging the gap between corporate presence and local relevance.

7. Dominate with local advertising 

To dominate local markets, brands must:

  • Harness hyper-targeted segmentation and geo-targeted advertising to reach and engage precise audiences.
  • Create localized content that reflects community values, engage in community events, optimize campaigns for mobile and track results.
  • Fine-tune strategies, outperform competitors and foster lasting relationships with customers.

These strategies will enable your message to resonate with local consumers, differentiate you in competitive markets and ensure you become a major player in your specific area. 



Dig deeper: The 5 critical elements for local marketing success

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Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

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Battling for Attention in the 2024 Election Year Media Frenzy

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Battling for Attention in the 2024 Election Year Media Frenzy

Battling for Attention in the 2024 Election Year Media Frenzy

As we march closer to the 2024 U.S. presidential election, CMOs and marketing leaders need to prepare for a significant shift in the digital advertising landscape. Election years have always posed unique challenges for advertisers, but the growing dominance of digital media has made the impact more profound than ever before.

In this article, we’ll explore the key factors that will shape the advertising environment in the coming months and provide actionable insights to help you navigate these turbulent waters.

The Digital Battleground

The rise of cord-cutting and the shift towards digital media consumption have fundamentally altered the advertising landscape in recent years. As traditional TV viewership declines, political campaigns have had to adapt their strategies to reach voters where they are spending their time: on digital platforms.

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According to a recent report by eMarketer, the number of cord-cutters in the U.S. is expected to reach 65.1 million by the end of 2023, representing a 6.9% increase from 2022. This trend is projected to continue, with the number of cord-cutters reaching 72.2 million by 2025.

Moreover, a survey conducted by Pew Research Center in 2023 found that 62% of U.S. adults do not have a cable or satellite TV subscription, up from 61% in 2022 and 50% in 2019. This data further underscores the accelerating shift away from traditional TV and towards streaming and digital media platforms.

As these trends continue, political advertisers will have no choice but to follow their audiences to digital channels. In the 2022 midterm elections, digital ad spending by political campaigns reached $1.2 billion, a 50% increase from the 2018 midterms. With the 2024 presidential election on the horizon, this figure is expected to grow exponentially, as campaigns compete for the attention of an increasingly digital-first electorate.

For brands and advertisers, this means that the competition for digital ad space will be fiercer than ever before. As political ad spending continues to migrate to platforms like Meta, YouTube, and connected TV, the cost of advertising will likely surge, making it more challenging for non-political advertisers to reach their target audiences.

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To navigate this complex and constantly evolving landscape, CMOs and their teams will need to be proactive, data-driven, and willing to experiment with new strategies and channels. By staying ahead of the curve and adapting to the changing media consumption habits of their audiences, brands can position themselves for success in the face of the electoral advertising onslaught.

Rising Costs and Limited Inventory

As political advertisers flood the digital market, the cost of advertising is expected to skyrocket. CPMs (cost per thousand impressions) will likely experience a steady climb throughout the year, with significant spikes anticipated in May, as college students come home from school and become more engaged in political conversations, and around major campaign events like presidential debates.

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For media buyers and their teams, this means that the tried-and-true strategies of years past may no longer be sufficient. Brands will need to be nimble, adaptable, and willing to explore new tactics to stay ahead of the game.

Black Friday and Cyber Monday: A Perfect Storm

The challenges of election year advertising will be particularly acute during the critical holiday shopping season. Black Friday and Cyber Monday, which have historically been goldmines for advertisers, will be more expensive and competitive than ever in 2024, as they coincide with the final weeks of the presidential campaign.

To avoid being drowned out by the political noise, brands will need to start planning their holiday campaigns earlier than usual. Building up audiences and crafting compelling creative assets well in advance will be essential to success, as will a willingness to explore alternative channels and tactics. Relying on cold audiences come Q4 will lead to exceptionally high costs that may be detrimental to many businesses.

Navigating the Chaos

While the challenges of election year advertising can seem daunting, there are steps that media buyers and their teams can take to mitigate the impact and even thrive in this environment. Here are a few key strategies to keep in mind:

Start early and plan for contingencies: Begin planning your Q3 and Q4 campaigns as early as possible, with a focus on building up your target audiences and developing a robust library of creative assets.

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Be sure to build in contingency budgets to account for potential cost increases, and be prepared to pivot your strategy as the landscape evolves.

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Embrace alternative channels: Consider diversifying your media mix to include channels that may be less impacted by political ad spending, such as influencer marketing, podcast advertising, or sponsored content. Investing in owned media channels, like email marketing and mobile apps, can also provide a direct line to your customers without the need to compete for ad space.

Owned channels will be more important than ever. Use cheaper months leading up to the election to build your email lists and existing customer base so that your BF/CM can leverage your owned channels and warm audiences.

Craft compelling, shareable content: In a crowded and noisy advertising environment, creating content that resonates with your target audience will be more important than ever. Focus on developing authentic, engaging content that aligns with your brand values and speaks directly to your customers’ needs and desires.

By tapping into the power of emotional triggers and social proof, you can create content that not only cuts through the clutter but also inspires organic sharing and amplification.

Reflections

The 2024 election year will undoubtedly bring new challenges and complexities to the world of digital advertising. But by staying informed, adaptable, and strategic in your approach, you can navigate this landscape successfully and even find new opportunities for growth and engagement.

As a media buyer or agnecy, your role in steering your brand through these uncharted waters will be critical. By starting your planning early, embracing alternative channels and tactics, and focusing on creating authentic, resonant content, you can not only survive but thrive in the face of election year disruptions.

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So while the road ahead may be uncertain, one thing is clear: the brands that approach this challenge with creativity, agility, and a steadfast commitment to their customers will be the ones that emerge stronger on the other side.


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