As a business coach, I often share this quote by Roger Staubach with clients:
“There are no traffic jams along the extra mile.”
And when it comes to advertising, going that extra mile isn’t about spending more, it’s about spending smarter.
So, how much should you spend on advertising?
Ideally? Nothing.
Yes, really. Because advertising shouldn’t be an expense, it should be an investment. Every pound you put into advertising should return to you in multiples. Yet, when I ask business owners about their advertising ROI, most simply shrug. No figures. No clarity. Just hope.
But hope isn’t a strategy.
If you’re not measuring your advertising ROI, you’re flying blind. And that’s where most businesses lose their edge.
Think of Advertising as Buying Customers
Here’s a mindset shift: advertising is essentially a way to purchase customers.
If you’re buying wisely, each customer should bring in enough profit to cover the cost of acquiring them, and then some.
Your break-even point is when the return equals your ad spend. That’s when your advertising budget is effectively zero. Beyond that? You’re in profit territory.
But here’s the catch: you can’t improve what you don’t measure.
Four Simple Steps to Start Measuring ROI
If you’ve ever said, “Advertising is too complicated to track,” I hear you. But it doesn’t have to be. Let’s simplify it:
1. Trace Enquiry Origins
Train your team to ask every prospect: “How did you hear about us?”
Better still, use unique offers or landing pages tied to each campaign. That way, you know exactly what’s working.
2. Measure Conversion Rates
Not all enquiries are created equal. Some ads may bring in more leads, but fewer conversions. Track how many leads actually become paying clients.
3. Know Your Customer Lifetime Value
Are your clients one-off buyers or repeat customers? Most businesses thrive on repeat business. Knowing this value helps you understand how much you can afford to invest in acquiring each client.
4. Calculate Your ROI
Here’s the formula:
Enquiries × Conversion Rate × Lifetime Value × Profit Margin ÷ Investment = ROI
With today’s CRM and marketing tools, gathering this data is easier than ever. No excuses.
The Power Is in the Numbers
Once you know your numbers, you’re no longer guessing, you’re strategising. You can tweak campaigns, test new messages, and scale what works. That’s how you go from spending to investing. From hoping to knowing.
And that’s how you stay ahead of the traffic by going the extra mile.
Book a Strategy Call. Let’s Build Your ROI Plan
We’ve spent years helping businesses turn their marketing into a strategic growth engine. If you’re ready to make your marketing work harder, let’s talk. Book the call with us today.
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Because the extra mile isn’t crowded, and that’s exactly where your business deserves to be.
Next steps…
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