Optimize Campaigns with Marketing Spend Data

Once you've set up Marketing Spend Tracking, you can identify which campaigns deliver the best return on investment and make data-driven budget decisions. By analyzing cost per lead (CPL) and ROI in your reports, you can shift spending toward high-performing channels and cut waste on underperforming campaigns.

How Marketing Spend Optimization Works 

WhatConverts combines three data points to calculate marketing performance:

• Marketing Spend: Total amount spent on each source or campaign. 
• Lead Volume: Number of leads generated by each source.
• Sales Value: Revenue attributed to leads from each source (Quote Value or actual closed sales).

These metrics automatically calculate Cost per Lead and ROI, showing you which campaigns deliver the best results and where to optimize spending.

Analyze Performance Using Standard Reports 

WhatConverts provides two standard reports to analyze marketing spend performance: the Summary Report for high-level ROI overview and the Marketing Channels Report for detailed channel-by-channel analysis.

Review  the Summary Report 

Start with the Summary Report to assess overall marketing investment performance.

1. Access the Summary Report. 
2. Review the three key sections at the bottom: Total Quote Value (revenue potential), Total Sales Value (actual closed revenue), and Marketing Spend (total cost).
3. Compare spend to quote or sales value to assess ROI. If quote/sales value exceeds spend, you have positive ROI.
4. Use percentage change indicators to track performance trends over time.

Analyze the Marketing Channels Report 

The Marketing Channels Report breaks down performance by channel, helping you identify which sources drive the best ROI.

1. Access the Marketing Channels Report. 
2. Review the four key sections:

Top Channels by Lead Type

• What to look for: Channels with high lead volume. 
• Use this to: Identify your top traffic sources.

Top Channels by Quote Value

• What to look for: Channels that generate high-value leads. 
• Use this to: Prioritize channels bringing in qualified prospects.

Channels by Marketing Spend

• What to look for: Where your budget is currently allocated. 
• Use this to: See if spending aligns with performance.

Channels by Cost Per Lead

• What to look for: Channels with the lowest cost per lead. 
• Use this to: Identify your most efficient marketing channels.

Identify Optimization Opportunities 

After reviewing your Summary and Marketing Channels reports, look for patterns that may indicate where adjustments could improve efficiency. Results vary based on market conditions, execution, and other external factors.

Channels Showing Strong Efficiency 

Common signals

• Low cost per lead 
• High quote value or sales value
• Good conversion rates

Example: If Google CPC generates leads at $25 per lead with an average quote value of $500, while Facebook CPC costs $75 per lead with $300 quote value, Google CPC is more efficient.

Suggested action: Consider allocating additional budget gradually while monitoring performance.

Channels Showing Low Efficiency 

Characteristics:

• High cost per lead 
• Low quote value or sales value
• Poor conversion rates

Example: If a display ad campaign costs $150 per lead but only generates leads worth $200 on average, the ROI is too low.

Suggested action: Consider reducing spend, refining targeting, or pausing investment while reassessing performance drivers.

Channels with High Volume but Low Value 

Characteristics:

• High lead volume 
• Low average quote value
• Acceptable cost per lead, but poor quality

Example: A campaign generates 100 leads at $20 each, but most leads aren't qualified or don't convert to sales.

Suggested action: Review targeting, messaging, or qualification criteria before increasing spend.

Channels with Low Volume but High Value 

Characteristics:

• Low lead volume 
• High average quote value
• Good conversion rates

Example: LinkedIn ads generate only 10 leads per month at $100 each, but all leads are qualified and 50% close.

Suggested action: Consider controlled budget increases to test scalability without sacrificing quality.

Optimize Your Marketing Budget 

Use insights from Marketing Spend, lead data, and reporting trends to inform budget decisions. Outcomes depend on multiple factors, including market conditions, targeting, and other external factors.

1. Shift Budget Toward Higher-ROI Signals
   Focus on channels that currently show stronger efficiency relative to cost.
   Suggested approach
   • Identify channels with favorable cost per lead and lead value trends. 
   • Adjust budgets incrementally, typically in small percentage changes.
   • Monitor performance as spend increases.
2. Reduce or Pause Underperforming Campaigns
   Cut budgets for sources with high costs and low conversion rates.
   Suggested approach
   • Identify campaigns where cost per lead is too high relative to the revenue those leads generate. 
   • Reallocate that budget to high-performing channels.
   • Consider testing new targeting or messaging before completely abandoning a channel.
3. Test New Keywords or Audiences
   Use insights from top-performing campaigns to refine targeting in other channels.
   How to do it:
   • Identify which keywords, ad copy, or audiences work best in your top channels. 
   • Apply similar targeting strategies to underperforming channels.
   • Run A/B tests to compare performance.
4. Set Cost Per Lead Benchmarks
   Establish target cost per lead thresholds based on your quote value and conversion rates.
   Suggested approach
   • Determine what you can afford to pay for a lead by considering your average quote value and how often leads convert to sales. 
   • Example: If your average quote value is $500 and 20% of leads convert to sales, you're generating $100 in revenue per lead on average. Your target CPL should be well below this number to remain profitable.
   • Use this benchmark to evaluate new campaigns and channels, adjusting based on your business's profit margins.
5. Monitor Trends Over Time
   Review your Marketing Spend reports regularly to track how budget adjustments impact performance.
   How to do it:
   • Check the Summary and Marketing Channels Reports regularly. 
   • Compare month-over-month performance to spot trends.
   • Adjust budgets based on sustained performance patterns.

Related Topics 

• What is Marketing Spend? 
• Track Marketing Spend
• Add Marketing Spend Manually
• Connect Ad Platforms to Track Marketing Spend
• Access Marketing Spend in Your Reports