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How to Increase ROI Through Marketing & Advertising

Author: Alister James
by Alister James
Posted: Sep 13, 2020
roi marketing

The New York Times termed NBA side Toronto Raptors trade agreement for Kawhi Leonard as ‘ A huge risk in franchise history’, it probably left people anxious and wondering about what (and more essentially how much) return the agreement would create.

At that time the agreement was struck, little did the team management knew that Leonard would pull off one among the best sporting moments in history so soon after, and therefore provide the best possible return on the investment (ROI) a team could ask for.

However, things could have easily taken a serious turn if Leonard had missed that shot. Strategies would have been questioned, tactics would have been scrutinized, and worst of all the dreaded await an ROI would have continued.

Marketing and advertising agencies undergo equivalent turmoil whenever they have to make similar business decisions. Is this campaign the proper one? Would that venture lead to a positive ROI in marketing? How long before we get a return? Is there any other cost linked?

The questions are endless. So is the anxiety.

But, in addition to incorporating some key factors, agencies must also keep reminding themselves about a few crucial aspects before answering those questions and starting the journey to estimate their marketing and advertising ROIs.

It's an Investment, Not a Cost’

The word 'cost' features a negative ring to it, doesn't it? It gives the sense that something is a liability rather than an asset, which shouldn’t be the case when agencies check out marketing and advertising expenses. The management never wanted the word ‘liability’ to be related to Kawhi Leonard, when the Toronto Raptors brought him in.

Sir Martin Sorrell, founder of one of the world’s most valuable advertising agency, WPP plc, would agree. He quoted, " the organizations should always view online marketing as an asset and should never think about it as a cost."

Apart from that, the company's financial statements, marketing and advertising must not be labeled as cost. Instead, these elements must be treated as investments, since they’re implemented to contribute towards the growth of a company.

Although, just like any other investment, the returns could be instant or they could be something the agencies achieve in the long-term.

Returns Can Be Long-Term

And there you are thinking only marriages work that way!

Going back to the NBA instance, had Leonard missed his last-ditch buzzer-beater the Raptors could have been left frustrated. A venture that took 10 months to create a positive ROI for the team, was likely to stretch much longer.

There’s no doubting the talent of the player or the commitment of the team management to make a productive decision in this situation. However, there can be situations that cause delays in generating the expected ROI in marketing for agencies.

An instance of a long-term return is clear in the case of search engine optimization (SEO) marketing — an organic method that helps agencies improve their market visibility. While it is understood that the organic nature of this method means the results will show sometime within the future, it’s not certain how long that wait might be.

Therefore, while answering questions linked with the ROI time period, agencies must understand that returns can be a long-term affair and accordingly weigh the pros and cons of an investment.

ROI Isn’t Necessarily Monetary

One of the most common mistakes that agency is bound to make while answering questions linked with ROI in marketing is to ask an irrelevant question.

There can be instances from, when senior executives at agencies demand the ROI to have a number linked with it since ‘higher the number, the better the ROI’ has turned into the globally accepted norm.

Therefore, The reality is, ROI in marketing and advertising depends mainly on the goal that agencies set out to get in the very creation. basically, because ROI can be represented with a numerical value that is calculated using financial data and metrics, it doesn’t mean that it should be represented that way.

It depends on the agency’s the goal of whether ROI in marketing can have different values for different objectives.

For instance, taking a page out of Igor Ansoff’s book, if the goal is to sell a new product in a new market then the ROI for that venture would be completely different in comparison to selling an existing product in an existing market. Logic dictates that the revenue in both situations would be significantly different and thus cannot (and should not) be a feasible measure for ROI.

Companies would be willing to take a major hit on their income statements and create a negative ROI, based on revenue, in return for setting up a solid foundation in the new market and getting a positive ROI based on access to a number of new prospects.

Similarly, if the goal of an agency is to increase its clientele value by targeting the inflow of quality clientele, who can help improve the clientele journey the process by advocating the business to other clienteles, then the marketing ROI goals must be modified accordingly.

The 5Rs to Increase ROI

While there may not be a perfect answer to the question ‘What is a good ROI for an agency’, here’s the interesting part — the aim for agencies to get the utmost ROI in marketing and advertising does indeed exist.

  • Right Audience
Have you ever found yourself on an internet site viewing an advertisement for another website that you visited earlier? If yes, then you know that you’re now part of an elite target market.

Choosing the correct target market to exhibit your campaigns is basically what it's all about when it comes to increasing ROI in marketing and advertising. Agencies must master the combination of having the right set of eyes on the right product at the right time.

One of the best ways of doing so is taking the digital advertising route, which may target and segment the perfect audience for an agency. Through various processes like site retargeting, search retargeting, and geo-fencing agencies can enjoy a high return on investment and therefore give themselves an edge over their corrival.

  • Right Tactics
While there are proponents of both shots, what does one think is more valuable to score in basketball — a three-pointer or a two-pointer?

Relies on the gravitas of the situation, right?

If your team is playing an inconsequential league game with nothing to lose, it might as well shoot those three-pointers to enthrall the fans and make the most out of a grim situation.

But, what if it’s a tied game in the final match of a conference semi-final with just seconds left to score and cement a place in history? Does one risk a three-pointer or play it safe and win with a two?

What the Toronto Raptors did perfectly to make sure that they got the best ROI from their trade agreement for Kawhi Leonard was to execute the right tactics at the right time. They chose to go for a two-pointer instead of a three-pointer and it worked.

Similarly, for agencies to ensure that they get the utmost ROI in marketing from their campaigns, it’s important that they choose the right tactics and not necessarily the best ones.

Some might prefer direct marketing as a great tactic to gain the best out of their promotional campaigns, email marketing, which has a proven track record of generating an ROI of 38900%, is a very popular and effective tactic, especially if the goal is to spend less and earn more.

  • Right Strategy
For agencies that are hoping to increase their ROI in marketing and advertising by running campaigns, choosing the right tactics go hand-in-hand with executing the right strategy.

The Toronto Raptors could have easily messed up their tactic of choosing to go for a two-pointer over a three-pointer in the last few seconds of the game if they did not have the correct marketing strategy in place.

What was that strategy, you ask? The strategy of having their leading points-per-game scoring player, Kawhi Leonard, on the court when the team needed him the most.

The importance of having the right strategy, which complements the right tactics, leads agencies to enjoy a high return on investment. It was due to these techniques that a marketing agency was able to provide an ROI as high as 4,381% to one of its clients — Cafe Mexicana.

  • Right Tools

Imagine this. You are about to impress an audience of sophisticated royals at the opera house. You know that the people there would enjoy the soothing tunes from your violin. You have your strategy and tactics set straight to gain the highest ROI — play the violin, earn the appreciation, and get to perform again the next week.

You set foot on to the stage, acknowledge the applause, keep the violin on your shoulder, and take a deep breath. Now is the time to impress the audience. You look at your violin case and the ground beneath your feet starts to move, as you realize that forgot to bring the bow.

Mastering the talent of using the accurate strategy and strategy is great. However, if an agency does not have the right tools to execute those tactics and strategies, then it gets as bad as playing the violin without a bow. All you produce is noise for something that had the potential to draw in people but is instead now driving everyone away.

Getting your hold of the right set of tools to get the best ROI in marketing and advertising can be challenging. However, agencies can uplift their bottom lines and increase their returns significantly by using valuable marketing solutions considering their needs and requirements.

  • Right Team
American author and speaker John C. Maxwell said, "Team effort makes the vision work, but the vision becomes a nightmare when the leader has a big dream with a bad team."

It takes all the levers of a machine to work together to get it to work productively and efficiently. If even one among them fails, the entire machine stops working.

Even though the Toronto Raptors have full faith in Kawhi Leonard to get them above the finish line, this would not have been possible without the other players and their contribution to the team.

Agencies must realize the importance of having the right team in place to help increase their ROI in marketing and advertising. Every person brings a unique approach to the table and it’s the value received from them that helps boost growth and revenue.

There may be instances though when it becomes a costly affair for agencies to have a large team or top-notch quality talent in place; however, with the help of valuable and cost-effective marketing solution agencies can reduce costs, increase profits, and ultimately get the best returns from their marketing and advertising campaigns.


The Increasing ROI in marketing and advertising can be a huge task for agencies, specifically when it comes to cutting costs. The success mantra for start-ups is to be as lean as possible to deduct their costs, going lean beyond a limit can be quiet challenging for established agencies.

Therefore, incorporating the 5R philosophy, by utilizing valuable white-label solutions, provides agencies with the best answers that they're searching for while sustaining themselves and getting the best possible return on their investments.

About the Author

Hi, this is Bharat Negi I am a professional Seo expert working with many brands. I like to research on the trending topics and techniques.

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Author: Alister James

Alister James

Member since: Nov 05, 2019
Published articles: 1

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