Marketers are constantly questioned on how the success of a campaign is measured. With numerous data sources, we have more information than ever to evaluate marketing campaigns. However, even with all the collected data, how do we know it's an effective marketing campaign?
Marketing campaigns of today can collect excellent information like how many times an advertisement was seen or clicked, how much the ad cost per viewing, or how many impressions the ad made. We can dive into what keywords were used in an online search or what the click through rate (CTR) indicates. And a marketing campaign can utilize tracking phone numbers to see how many calls were made over a campaign.
Although medical marketing campaign data collected can reveal a great deal about a marketing campaign, it does not directly tell us if the healthcare campaign is successful. Therefore, more data is required to understand whether a campaign is successful or not.
In order to measure the success of a marketing campaign, outside information is required. First, industry benchmarks can be analyzed to see where your campaign falls in comparison. Second, return on investment (ROI) can be calculated using marketing costs and conversions to understand a campaign's success.
Benchmarks for industry standards are one source of data we can use to see if a marketing campaign is successful. Several large entities have already done the heavy lifting for you. Word Stream and other sources have collected and analyzed data for industry-standard statistics. By utilizing industry-standard data, comparisons may be made with your data. If your campaign is at or above industry standards, it can be concluded the marketing campaign is successful.
Moreover, we can calculate ROI by taking new patient data and dividing the costs associated with marketing. ROI is calculated by:
(New Patient x Average Lifetime Value) - Marketing Budget
The average lifetime value across your industry can be obtained from outside data sources. Healthcare providers can also calculate lifetime value by averaging how long patients remain with the practice and how much was spent during that time. Again, industry ROI standards may be used to see where you compare. If you are obtaining at or above industry standards, no doubt the marketing campaigns are working.
Only when you find your campaign is below industry standards can it be tricky to make decisions. Benchmarks use an array of data to come up with an average. Sitting at or above average is indeed a benchmark for success. However, sitting just below benchmarks could mean several things. If the lowest possible denominator is still far below your average, you may still have a successful marketing campaign. However, this data is never shared. When a marketing campaign sits below benchmarks, cash flow, new patient data, and other data sources may be used to make the most informed decisions about your marketing campaigns.
The average conversion rate across Google Ads in 2019 was 4.40% on the search network and 0.57% on the display network. The average conversion rate for the healthcare industry was 4.63% on the search network and 0.75% on the display network. An update in 2022 was made for the healthcare industry sitting at 3.36% for the search network and 0.82% for the display network.
The average CTR (Click Through Rate), or the amount of interest the ad produces, for dentists in 2019 is approximately 4.69%, doctors and surgeons are 6.11%, and other health-related services sit at 5.94%. In 2016 (updated 2022), the overall healthcare CTR for the search network was 3.27%, and the display network was 0.59%.
The average cost per click (CPC) for the health and medical industry updated in 2022 was $2.62 for the search network and $0.63 for the display network.
|Health & Medical||Average Conversion Rate (Search)||3.36%|
|Average Conversion Rate (Display)||0.82%|
|Average CTR (Search)||3.27%|
|Average CTR (Display)||0.59%|
|Average CPC (Search)||$2.62|
|Average CPC (Display)||$0.63|
By utilizing benchmarks and industry standards, you can identify the successes of your campaigns. For more information on efficient healthcare marketing practices, contact the marketing professionals at Medical Marketing Guru. Our quarterly marketing reports share ROI and benchmark data to help you understand the success of your marketing campaigns.