3 Tips to Increase Your Web3 Marketing ROI
Return on investment (ROI) measures how much profit you get from your marketing dollar. NFT and Web3 Marketing can be overwhelming if you don’t have a plan. To help you avoid getting caught up in the day-to-day and spending without measuring, it’s crucial to create a marketing ROI strategy. A robust system will also help you identify where there might be leaks in your bucket so that you can stop them before they grow into something more serious.
Tracking your marketing ROI over time can also identify any correlations between marketing spending and sales. This can help you make better decisions about where to spend your marketing dollars in the future.
This blog post will walk through three key steps to increase your marketing ROI and some best practices for developing a successful measurement strategy.
Define your marketing goals
Before improving your marketing ROI, you must understand where your current marketing efforts fall short. To do this, you’ll first need to define your goals. There are a few key factors to remember when setting goals for your marketing strategy. First, you’ll want to consider any seasonal factors affecting your marketing. For example, if you know that tax time often leads to tax loss harvesting, you can use that information to adjust your goals accordingly. Next, you’ll want to consider how your customers discover your products or services. Do they come through an organic search? Social media? Paid advertisements? Capturing this information will help you set more specific goals for your audience.
Setting marketing goals isn’t about pie-in-the-sky thinking; you must be realistic about what can be achieved. Use hard numbers wherever possible, and set a timeframe for each metric so that you can measure progress. Trying to increase brand awareness by 10% in the next quarter is a much more achievable goal than “increase brand awareness.”
Some common NFT marketing goals include:
- Increasing traffic to your website or online store by X%
- Generating X number of secondary purchases or mints from your marketing
- Improving conversion rates by X%
- Increasing brand awareness or reach by X%
- Decreasing customer acquisition costs by X%
Measure your current ROI
Once you’ve defined your goals, you need to look at your current marketing ROI to see where you can improve. This means tracking a few key metrics to understand where your marketing dollars are going and if they’re actually worth the investment. — Social media ROI — Social media is a powerful marketing channel and can be very good at increasing your brand awareness. But to measure the ROI of your NFT marketing efforts, you’ll need to track more than just impressions.
You want to know how many people are clicking through to your website and what they do once they’re there. Paid advertising, such as Google AdWords, can be a great way to target particular audiences. But tracking your paid ad spend and CPA ensures you’re getting a good return on your investment. Pay attention to things like click-through rate and cost per click to determine your ads’ effectiveness. Organic search traffic often converts better than social media or paid traffic. However, you’ll want to track things like keyword ranking and conversion rate to determine how successful your SEO efforts are.
If you’re spending money and resources on platforms like Telegram or Discord, how are they performing as conversion or retention tools, and is that impacting your ROI? If you’re not capturing data on this — you should be. For example, you can use UTM tags on your Discord’s official links page to see how many conversions you’re getting through to OpenSea or your mint site.
Once you’ve determined your current marketing ROI and tracked your most effective campaigns, you can start to eliminate the areas that are losing you money and scale up your most successful campaigns. This will help you identify which campaigns are worth continuing and which ones are losing you money. Identify your top 10 campaigns. Prioritizing your top 10 campaigns can help you keep track of your progress and ensure you don’t lose track of important information. Focus on improving your lowest-ranking campaigns. You can’t improve a movement that is already working perfectly well, but the low-hanging fruit is ready to be optimized…improving your lowest-ranking campaigns can increase your overall marketing ROI.
Benchmark against competitors
Once you’ve improved your marketing ROI, keep track of your progress over time. One way to do this is by recording and reviewing your marketing ROI and comparing it against your competitors. This can help you understand if your marketing is on the right path and if you should make any adjustments.
NFT drops are often open with their data; it’s in the spirit of the space. But even when they’re not, it’s easy to match up research into their Discord stats, social stats, content engagement, etc., with their on-chain records around holder ownership. This data can illuminate how much each acquisition costs, what sort of activity correlates with which marketing offers, and more.
Joan is a Web3 / NFT writer, angel investor, communicator, and creative director. She is the founder of the web3 marketing, PR, branding, and creative firm Studio Self, where she helps blockchain companies, founders and creatives communicate with humans. She is raising Metapunk Ventures, a Web3 venture studio, and building MODA DAO and Emanate.