Strategically executed campaigns will drive lots of traffic to your website and generate significant numbers of leads. This is great, of course, but don’t take your eyes off the main goal — turning leads into business!
Real Estate is tricky for advertisers because the sales cycle is long and most of the leads generated are future business. Consistent (and persistent) follow-up is the key to converting leads and getting a return on your ad spend.
In fact, ROAS is a key indicator of how well your marketing is working. The formula is:
ROAS = (Revenue from advertising) / (Cost of advertising) * 100
This creates a percentage. Anything over 100% indicates you’re making a profit, and of course you want to maximize this value. If it’s less than 100%, that’s an urgent issue — investigate and adjust your ads, follow-up, or both. Especially consider increasing your amount of follow-up — are you getting enough touches with every lead?
Along with the overall number, you should calculate ROAS for individual ad sources, since the averaging effect could disguise a problem with one source. Maybe your targeting is off on that platform, or it generates the wrong type of leads.
You can also calculate across different time frames, such as monthly, quarterly, and annually, especially if your business has long sales cycles. Investigate the timestamps from your CRM to determine the average length of time from lead acquisition to deal. It may take some work to attribute business to specific campaigns, but these calculations can give you a good indication of what ROAS time frame to monitor.
If you want help tracking the results of your digital marketing efforts, let’s chat. Our team of experts has 23+ years of experience designing and optimizing lead generation campaigns to bring you more business with less effort. To learn more, click the green button below to get started with a free marketing assessment.