Marketing campaigns are essential for business development. Without them, the path to success is more difficult and time-consuming. For this reason, companies aiming for accelerated growth should invest in this strategy.
In this sense, it is essential to monitor the investments made in marketing. After all, the capital invested must have a satisfactory return — otherwise, the efforts may be in vain. Therefore, it is worth knowing how to evaluate your campaigns.
In this content, you will understand the importance of monitoring investments in marketing campaigns and learn about 4 risks of not adopting this habit. Let’s go!
Why track investments in marketing campaigns?
To begin with, it is worth knowing the importance of monitoring investments made in marketing campaigns. The truth is that the budget spent on these actions is still a matter of debate among many managers.
Many leaders believe that marketing is an investment that generates more costs than returns. Although this is not necessarily true, one of the reasons for this impression is the lack of monitoring of the amounts spent on actions.
When this monitoring is carried out properly, it is possible to generate indicators that enable the analysis of the effects of marketing campaigns. In this way, professionals can understand whether the action promoted actually generated results or not.
Consequently, monitoring marketing investments allows you to understand whether the amount is sufficient or excessive. This helps the company to better use its financial resources, avoiding waste and obtaining better results.
4 Risks of not monitoring your business’s marketing investments
You’ve just learned about the importance of monitoring investments in marketing campaigns. Now you need to discover the 4 risks of not doing so.
Check it out!
1. Spending more than the expected return
When you don’t properly monitor your investment in marketing campaigns, you run the risk of spending more than the expected return on them. This is because you don’t know exactly how much revenue you’ll generate from each action you take.
Therefore, there is no way of knowing how much profit the campaign will make — or whether the marketing strategy will result in losses. In the long term, the company risks incurring debts that, over time, may become insolvent.
Therefore, the ideal is to define a budget and monitor the investments made, in order to assess whether the established spending limit is being respected.
2. Insisting on ineffective marketing campaigns
Revenue is one of the metrics that helps assess whether a marketing campaign, especially one focused on attracting customers, is efficient. If marketing professionals do not monitor their investment, there is no way to analyze whether the revenue obtained comes from the action promoted.
This way, the company can invest in inefficient campaigns, wasting money and energy from the marketing department . Consequently, you keep an open path through which financial resources flow, leading to losses for the organization.
3. Not considering important indicators
Performance indicators are metrics based on concrete and reliable data that quantify a company’s performance. To obtain these important numbers, it is necessary to monitor the amounts spent and the revenue obtained from marketing campaigns.
Without this monitoring, you cannot analyze whether the actions generate results. Therefore, any decision is made based on perceptions that may be wrong, putting the financial health of the business at risk.
Indicators worth monitoring include return on investment (ROI), cost per lead (CPL), conversion rate, traffic source, among others.
4. Not considering other possibilities
As you have seen, if monitoring of investments in a marketing campaign is not carried out, it will be difficult to know whether the actions implemented brought the expected results.
Therefore, there is a risk of not considering other possibilities for advertising and sales strategies. After all, without adequate monitoring of investments in your business’s campaigns, there is no way to measure the effectiveness of the current strategy.
Without realistic data, the tendency is to believe that the current methodology works, even when this is not the case. Furthermore, the marketing team cannot know which campaigns are delivering the best results, failing to take advantage of great opportunities for the company.
How to track your business’s marketing investments?
Now that you know the risks of not keeping up with your business’s marketing investments, you need to know how to carry out this activity in your company. Below, check out the main tips to put into practice!
Organize investments
The first task to closely monitor marketing actions with assertiveness involves organizing the investments already made. Often, the value attributed to the sector is not reviewed frequently, generating waste or lack of resources.
In this way, analyze how much was spent on previous campaigns and what the results were. With this information, you can project the average resources needed for the coming months.
Analyze the indicators
The use of indicators is essential in an organization, in any department. By analyzing these indexes, it is possible to understand where the failures and successes are — and adopt corrective measures. As a result, you can reduce or eliminate bottlenecks and plan more efficiently.
In marketing, this dynamic is no different. For example, suppose your company made a specific investment in social media marketing. However, when analyzing the indicators of the new campaign and comparing them with the numbers from previous actions, you realized that the performance of the current campaign was not positive.
This way, it is possible to evaluate what led to the drop in performance and decide what to do to redirect marketing campaigns — in order to achieve better results.