One of the early proponents of advertising, John Wanamaker, is famous for saying “Half the money I spend on advertising is wasted, the trouble is I don’t know which half”. Even though he made this statement all the way back in the 19th century, and despite all the advances in technology since then, it has been hard to measure the effectiveness of advertising. This is particularly the case where there is a cross-over from the digital world to the physical world. For example, a dentist may use pay-per-click ads to generate more traffic to their website and more calls to their practice. In a competitive location, the cost of a click can be high and the monthly cost for a campaign can easily run into the thousands. Despite this spend, the dentist can’t easily track how many calls and appointments all this advertising is generating for their practice and it can be even more difficult to calculate what their return on investment is.
This is where call tracking comes in. It enables a business to track the flow from pay-per-click ads or traffic from the website through to calls and then on to sales. This is invaluable for a business because you can’t improve what you can’t measure.
Quantum uses call tracking with our more innovative clients and we’ve developed a proprietary method to use this data to calculate return on investment for each of the digital marketing channels.
Call tracking works by displaying a different telephone number depending on how your clients find you online. Using a technology called dynamic numbering, your clients will see one telephone number if they find you through a pay-per-click ad and another number if they find you through an internet search. Once they make a call to your business, you can track not only which channel the call came from but the duration of the call, missed calls and whether the call resulted in an appointment.
Using this call tracking data, Quantum is able to calculate a return on investment (revenue generated/campaign cost) using an algorithm that we have developed in-house. This enables us to calculate the revenue generated and return on investment for each of your digital channels. In the example below:
- for every $1 the client spends on pay-per-click they generate in revenue around $6.30
- and for every $1 they are spending on SEO they are generating an incredible $70.10.
With call tracking and our ROI algorithm, it is now possible to for you to track the effectiveness of your digital advertising. And with that knowledge, it is possible to continue to improve the effectiveness of your advertising and grow your business more quickly and cost-effectively.