Measuring Online Marketing: 7 Stats to Determine if You Spent Wisely (with examples) | Vicky Wu | Skillshare

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Measuring Online Marketing: 7 Stats to Determine if You Spent Wisely (with examples)

teacher avatar Vicky Wu, Marketing Guru

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

10 Lessons (16m)
    • 1. Introduction to Measuring Results

      0:54
    • 2. Primary Goal to Track #1

      0:43
    • 3. Primary Goal to Track #2

      0:28
    • 4. What I Measure for My Marketing Clients

      0:20
    • 5. Client 1 - Started with 7 Likes + PPC

      4:02
    • 6. Client 2 - Started with 200 Likes, no PPC

      1:20
    • 7. Client 3 - Started with 475 Likes + PPC

      1:24
    • 8. How to Calculate Return on Investment

      3:27
    • 9. Project - Develop Your Spreadsheet

      2:12
    • 10. Recap

      0:48
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About This Class

If you are doing social media marketing or online marketing for any type of business at all, whether it’s a business that you do on the side because you enjoy and want to make a little extra money, you’re a full-time entrepreneur, or your job is doing marketing, being able to determine if the places where you have invested time or money is important.

If marketing isn’t resulting in paying clients, it’s could be a waste of time and money.  But understanding which things to track and measure, and whether those numbers are good, can be confusing.

 

In this class, you will learn:

  • What you should be measuring for your online marketing efforts, especially paid advertising (such as pay-per-click)
  • How to know if those numbers show that your strategy is working
  • Organic vs paid reach
  • Why impressions are important
  • Prospective clients (leads) and potential income potential
  • Look at specific examples of what I track using results for three of my clients
  • Calculating return on investment (ROI) and determine if yours is good

You will create:

  • A spreadsheet to help you track these numbers, view the history of the impact of your efforts, and calculate return on investment.

This training is right for you if:

  • You already do online marketing, especially for paid advertising
  • You want an easy way to understand if your efforts are resulting in sales

Want to learn more or join the discussion further?  

Join my marketing group on Facebook or read tons of marketing tips on my blog.

Meet Your Teacher

Teacher Profile Image

Vicky Wu

Marketing Guru

Teacher

The marketing you need, only when you need it.

My clients are like family. In over 30 years spent working the marketing and advertising for businesses big and small, I've uncovered some golden themes and tactics that work wonders, no matter the size of the budget.

Check my website at http://vickywu.us

or LinkedIn at https://www.linkedin.com/in/vickypenn/

Follow my Facebook Page at https://www.facebook.com/vickywu.us

See full profile

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Transcripts

1. Introduction to Measuring Results: I get asked to big questions all the time about online advertising. What should I be measuring? And how do I know if those numbers show that it's working? These were the same questions I get from my clients and from people who are just interested in increasing their online brand presence. So I'm going to tell you how I do it for my clients. I'm Vicky Boo your marketing guru. I provide the marketing you need on Lee when you need it. I have 30 years of marketing experience with companies of all sizes, from global companies, nonprofits and small business entrepreneurs. And along the way, I've found some gems of marketing truth that can help a business of any size be strategic with their marketing budget and not spend a lot of money to still get great results. 2. Primary Goal to Track #1: online marketing in general really has two main goals. Get your business and your brand found online. This is especially critical as we look at consumers getting younger, more millennials, being the main purchasers, even if they have a friend. Refer you through word of mouth marketing, which is the most beneficial kind you can have. Millennials will still go online to find out more about you. They want to find your contact information. They want to get to know you personally or your brand personally a bit, what you offer, what you stand for, and they want to see other customer testimonials, so being found online is critical. 3. Primary Goal to Track #2: you also want to get paying customers. I never recommend to my clients to spend a large marketing budget on things that aren't designed to get new customers in the door. Awareness is number one get found online, but your main goal of all of your marketing activities should be. How does this in some way tie to getting paying customers in the door? And when I measure statistics for my clients, I gear them around those two Mangold. 4. What I Measure for My Marketing Clients: So here's a few examples of what I measure I measure being found online. What is the awareness? What is the number of impressions online, and then how Maney leads air you getting for paying customers? That's why pay per click advertising is such a great option because you can specifically track the leads that you're getting. 5. Client 1 - Started with 7 Likes + PPC: Here's how I do some of my tracking. Here's client example Number one. This is a real client, and what I'm going to show you is month zero is the stats I pulled for the month before we started serving the client, and I will also show you after the end of month three the statistics of where month three was at it. That's a pretty good time frame to see how things were growing. And if they're going with some of the things I measure, this is not all of them. But it's a few critical ones. Organic reach. This is non paid. This is not advertising, putting any money towards it. It's just regular posts and other types of interaction on Facebook. Sidetrack Facebook Page likes engagement and impressions. Impressions is huge because studies show that most people need about 11 times of hearing your name or seeing about you before they even remember you and impressions is the total number of times it was seen. So if I saw something three times and you saw it two times, the total impressions would be by and I track paid results from things like pay per click or boosting post on Facebook. And then I combine the organic and the paid options to come up with total impressions and, of course, for the paid total clicks. I also for the clients that I'm doing, lead generation activities track the number of perspective clients that have come through the lead funnel and the potential income. When I'm able to accurately estimate that it's over. Client number one, they were starting out small in. It's kind of fun because when it's something starts small, it can have a big growth really quickly. So they started with seven Facebook Page likes Tin Engagement and 34 total impressions for that month. Zero. That was the month before we started servicing the account at the end event. Three they had grown to 18 likes, which is great. It's more people who you can potentially reach with your Message 293 engagement, which was almost a 3000% increase. And look at those impressions. They jumped to 11,000 which was a crazy 33,000% increase in month zero. Of course, the total impressions was going to be just their organic impressions from Facebook and total clicks and perspective clients. It was really zero that I put one in so that Excel could calculate some formulas for me. So ignore the one. It's a place holder at the end of month three. Taking their Facebook organic impressions and adding their paid pay per click impressions, we came up with a total of 33,000 impressions. That's a 98,000% increase over Month zero. Before services started. Total clicks on the ads was 332. Prospective clients was 13. And this is defined as the people who went through the lead funnel and actually entered their contact information provided name, email, phone number, whatever was requested to receive the benefit that they were getting from the fennel. Clients who get to that point where they're willing to share contact information with you are more serious, and they've taken themselves further along the buying process. And that's why it's important track. I can also track potential income off of this, knowing for this industry the average sales price of a client. I took about half the number of prospects and multiplied it by the average sales price, and we're looking at potential income of $82,000. If only half of those prospects become clients now, maybe a 50% rate. You think it's a little high, So I also pulled it down to where it was only a fraction of that, and you're still looking at a potential income of over $27,000 based upon industry averages . 6. Client 2 - Started with 200 Likes, no PPC: Let's look at client number two. This client is you can see in month zero. Before we started, already had a pretty good presence. They had 209 likes, and they chose not to do any pay per click advertising. They did boost a few posts on Facebook. We did that very strategically, choosing ones that would feed into a lead generation fennel. But they didn't actually do pay per click son months. Zero, they had a total of 4800 impressions. 33 engagement again. Ignore the clicks that was a placeholder for calculation purposes. At the end of month, three page Likes had increased by 9% engagement was up 700% and impressions was up to 12,000 impressions. When you add that to the impressions gained from boosting some posts, it generated 17,000 impressions, and total clicks on those bested posts was 217. So even though they had a different budget and didn't include pay per click advertising, you can still be strategic and grow your impressions and awareness online, as well as get a few leads. Even though that wasn't the goal of the marketing campaign itself, 7. Client 3 - Started with 475 Likes + PPC: client number three in month zero before we started already had a pretty good following on Facebook with 479 Likes engagement. 200 impressions of 4500 At the end of month three, we'd helped grow the Facebook page to 501 likes again more people that have the potential of seeing your message. Engagement increased almost 5000% to 10,000 and the number of impressions organic impressions on Facebook increased to 14,600. When you add in the paper, click advertising the total impressions online, and that's for one month jump to 35 1000. When you look at the number of perspective clients, people who completed the lead generation fennel by providing their name and contact information, we have 16 prospects. Potential income off of that based on industry standards. If you look at half of those number of people would be over $100,000 and if you did only a fraction of that, you're still looking at $34,000 of potential income based upon those 16 prospects. And of course, that's not even including people who may see the message and respond in a different way. That's not through the lead funnel. What we contract is 16 prospects with a potential income, if only half of them purchase of 100 $1000. 8. How to Calculate Return on Investment: of course, for any business activities, especially marketing, knowing your return on investment is important at its most basic level. A good return on investment means that for every dollar you put towards marketing, the business gets more than a dollar back. And there's a math equation. Sorry to take you back to elementary school, and you have to calculate, but basically you take your income, subtract your cost and then divide by your cost, and then you turn it into a percentage by multiplying by 100. Technically, you should take your net income, not your gross revenue, but your net income. And you may ask, what is a good return on investment? What ratio, What percentage? It can vary by industry, and it can be a little hard to text someone down on saying What is a good break? Obviously, you're wanting at least more than $1 back for every dollar you spend that here's some information I found online, and I usually gauged my own activities with a 5 to 1 ratio is middle of the curve. That would be 500% return on investment. A ratio over 5 to 1 is considered strong and a 10 to 1 ratio, which would be 1000% return on investment is considered exceptional. So let's look at my client averages. So we track potential income from those leads that we get. And I averaged it between these couple clients and we were looking at 40,000 average of leads from one month. And so I really my calculations. I'm showing you are a little bit off, but I'm just using the numbers that you've seen. I should really be taking the potential income of all the leads from the three months in comparing it to the cost for the three months. And what I'm giving you is the potential income from one month plus the cost for three months. So keep that in mind, but it's using figures. You've already seen the three month spin for all three months on average of the clients you seen was around 13. 50. So we know her calculation is we figure return on investment by taking in Tom and subtracting the costs and then dividing by the cost. So we're gonna take that 40,000 average and subtract it from the expenses we spent a 13 50 average. We come up with 38,650. We're gonna take that answer and divide it by the cost. So 38,650 divided by 13. 50 we get 28.63 turn it into a percentage by multiplying by 100 and would get 2863% now. Really, if you go back to that potential income which I told you my figure was one month stuff, we multiply that by three and then take the three month ad spend which the 13 50 is correct . Our return actually comes out to almost 9000%. But just going with the numbers we have here, we'll look at that. So as we said, a 5 to 1 ratio is middle of the bell curve around 500%. Anything above 10 Divine would be considered exceptional. That would be 1000%. And if you look, we have almost a 3000% return, and that was with one month of income in three month of expense. Again, I was 9000% when we take three months of potential income so the clients can know that they probably are getting a pretty good return on the investment that they're spending 9. Project - Develop Your Spreadsheet: your project is to develop a spreadsheet where you can track your ongoing return on investment and see how it changes over time. It's important to not only track at once, but to have a history of it so that you can see that work you're doing of its improving your results. Or if you need to keep changing some things, here's your project. It is relatively quick and easy. Go to the link that you will find down in the project area. That is, to this Google spreadsheet like the one you're viewing now. And when you get to the document, you'll see it tells you to make a copy and save it to your own Google drive. That will prevent you from not having your changes saved or someone else accidentally typing over yours. The spreadsheet is pretty self explanatory. Fill in all of the yellow boxes. Use a baseline of month zero. Before you started either tracking it or before you started doing some of your advertising and then going to put in the figures for last month, the spreadsheet will perform the percentage calculations itself, and your return on investment will color code depending upon if you've reached the minimum return on investment of 100%. If you have not, it will be read. And you know that you need to pay more attention to how you're spending your advertising dollars. You can also easily add extra columns or extra tabs if you want to continue tracking further, which I do recommend, so enter the information that you have. As of now, go ahead and and then either upload your spreadsheet in the project area or for the link to it. And we can all share Cem in CITES or advice that perhaps maybe you haven't noticed. This is one of the most important documents I use for my own clients. So if you do not already have a return on investment, spreadsheets started for your paid advertising efforts, you will want to make sure that you quickly go copy this spreadsheet and add it to your personal of report. 10. Recap: going back looking at it. Remember, we said to mingles for online marketing, get found online and get paying customers. If you look at the statistics, I pull from my clients in helping them determine if they're meeting these goals. Total impressions for each of these three clients. I showed you around 86,000 impressions for one month. Get paying customers again for one month. That average potential income was 40,000. A 28 100% return on investment so they can use these numbers to see that potentially, they're putting their money in a good place and not wasting any of their hard earned income on marketing tactics that are ineffective.