7 min to read

2019 is almost upon us and you’re probably struggling with next years P&L forecast, trying to figure out ways to increase your profit margin.

In theory the formula is simple:  

Profit Margin = Total Revenues - Total expenses

You can alter the outcome of this equation by doing three things;

  • Increase number of sales (always I guess)
  • Reduce costs (as long as is does not impact quality), or
  • Upsell or start charging your customers / clients more money to increase revenue (if the market allows it)

The tricky thing is that by trying to change one of these factors you run the risk of throwing the whole equation off balance. 

As any business manager knows theory and practice are very different things, and small changes might take a lot of secondary implications in the business flow.

So here are seven ways that you can increase your profit margin through digital marketing.  

1. Make all of your Decisions Data Driven

You have collected data on pretty much every single website visit in the last year. It’s now time to compile all of this data and analyze it. You can improve next years performance by learning from past mistakes and triumphs.

Compare Your Website Performance and Your Marketing Plan Timeline 

Make a list of all the marketing activities you carried out over the last year. Create a timeline and compare these dates against the performance metrics in Google Analytics.

Performance Analysis

Do you see any trends? Did one marketing push generate more traffic/conversions than another? Then use these data points to try and figure out why certain activities performed better than others.

Once you have done this you need to ask yourself two questions "can I replicate and improve the top performing campaigns in 2019?" and "how can I avoid launching campaigns like the worst performing ones of 2018?".

Analyze Your Website's Audience Data

Were your users of the same demographic as your initial target audience? If they weren't then you need to figure out why your marketing activities attracted the wrong people.

Google Analytics Audiences

Once you have figured out why then you can improve your targeting strategy so your campaigns are reaching the correct people. You may also have to change your ads so they appeal to your target personas. By doing this you will have a higher quality of traffic on your site thus a higher conversion rate.

Compare Your Website Performance by Channel

Here you will be able to see which channel is bringing in the most qualify leads and which others need further optimization. You can then alter your spend and strategy for each channel accordingly.

Channel Report

2. Increase Your Google Ads ROAS

ROAS = (revenue / advertising cost). It does not take an astrophysicist to understand that if you improve your ROAS then you will increase your profit margin. 

Poor Targeting Strategy

Your ads are being viewed by the wrong people which is causing a low conversion rate.Review your keywords to make sure they are matching what your target audience is actively searching for to get to your product or service.

Tip: add negative keywords so your ads aren’t showing up where you don’t want them to.

Poor Conversion Funnel 

The first thing you need to do is analyze your conversion funnel using Google Analytics. 

Tip: Use a filter so you are looking at paid traffic only. 

Is there a stage where there’s a big drop off in users? If so then you need to fix the leak in order to increase your conversion rate.

We find that the most effective way to improve the conversion funnel for paid traffic is to create a separate landing page for your PPC campaigns. These landing pages are more relevant to the ad and channel. For example, if the keyword is more oriented towards users in the research stage then you want a landing page that is more informative and that will create a need for your product/service.

Too Broad Remarketing Audiences

Remarketing campaigns allow you to get your ads back in front of users that have been on your site. For effective remarketing campaigns you must segment your audiences. 

You need create audiences in Google Analytics based on your customer data. A few examples are; audiences by age groups, users that abandoned the shopping cart, and users that viewed blog content. Each audience group requires personalized remarking. 

You can do this by going to Admin > Property Settings > Audience Definitions > Audiences. Then you click on create new, add some rules and hey presto, you've created an audience. 

Google Analytics Audiences

According to Monetate, 83% of marketers that achieved higher than their revenue goals in 2017 were using personalization techniques for campaigns.

3. Add Video Content to Your Conversion Funnel

According to Forbes, 90% of customers say video helps them make buying decisions and 64% of customers say that seeing a video makes them more likely to buy.

By 2019, video content will be the driving factor behind 85% of search traffic in the US (AMA). 

So, you should strategically place video content in your website’s conversion funnel to increase your conversion rate. However, the question is where in the Conversion funnel should you put your videos?

codedesign conversion funnel

Top of the funnel

One idea for top of the funnel is using educational content. You can use videos that discuss topics that your users are searching for and place them in your blog. This will also help with SEO. 

Try putting video content on your social media (we will cover this in the next part) and your PPC landing pages. 

Middle of the funnel

At this stage users are likely to be on the main part of your website. Here you can use explainer and company story videos to educate your users about your product and brand.

Bottom of the funnel

Your users are going to be on your product pages or about to make a business inquiry. You can target them with real customer experience videos to add authenticity to your brand and add credibility to your products/services.

Again, this links back to data. You should test numerous videos to see what works best. You can do this by using Google Optimise. 

4. Video Marketing for Social Media

There were 3.196 billion global social media users in 2018. How can your brand reach utilize this in order to increase your website traffic?

 ...Through video content!

Social media and video marketing have become a winning combination over the last two/three years. Views of branded video content increased 99% on YouTube and 258% on Facebook between 2016 and 2017. On Twitter, a video Tweet is 6x more likely to be retweeted than a photo Tweet.

 Finally, 25% of Instagram ads are now single videos, if you can catch the attention of a user in the first 30 seconds then they will stick around for the whole clip.

There are three styles that you can adapt to make your social media videos more conversion oriented, you can create:

  • Videos telling the story behind your product,
  • Videos showcasing your product,
  • Videos featuring promos.

Here are some key points to remember when creating video content for Facebook and Instagram to increase your profit margin from wyzowl


  • Remember graphics: 85 percent of videos are viewed with the volume off, according to Digiday.
  • Create playlists of videos: Make it easy for people to find similar videos.
  • Add a featured video: You can pin a video to the top of your page to introduce your brand or highlight a new product.
  • Upload videos directly to Facebook: Native videos give you analytics and better visibility in the feed.
  • Make sure you have a call to action: Give them something to do after they watch (or during) the video with an on-screen CTA.


  • Reduce words: Don’t make people read too much. Instagram is a visual medium
  • Think in variations on your theme: People tend to find a theme and stick with it. Instagram accounts often have an overall look and feel, then keep repeating their theme in new ways.
  • Keep it simple: Don’t get overly complicated, but keep the execution beautiful. People look to Instagram for simplicity and a breath of fresh air. Give highlights, not all the instructions.
  • Maintain focus: Be single-minded in your focus on one idea for your video.

5. Outsource Your Digital Marketing

Digital marketing is a very technical field which can be quite costly to carry out in-house. One way you can bring down your fixed costs is to outsource.

It is hard to put an exact figure on how much you will save but according to forbes outsourcing an entire team costs the same as one in-house marketer yearly wages. 

Another reason to outsource digital marketing is time. You can go from zero marketers that are specialised in digital to having a whole team of specialists within one week. You don’t have to train anybody. It’s great!

I want to reiterate the fact that you’ll have a team of specialists within their respected fields. This means optimised campaigns to get maximum return on the money you spend… it’s the winning formula to increase your profit margin!

6. Nearshoring: Why Not Take Outsourcing One Step Further?

You can take saving money through outsourcing one step further by nearshoring your digital marketing to companies that are based in countries that have a more competitive price. This will further decrease your costs, thus increase your profit margin. 

Nearshoring Digital Marketing

Take Portugal for example, there are plenty of big name businesses investing here. Accenture, Altran, Cisco, Microsoft, Nokia Siemens, SA, Google... the list goes on.

But why have these companies chosen to invest in Portugal? 

Well that's easy, because Portugal has…

  • Western European ethics in business, law, and culture 
  • Competitive cost structure
  • Continued political & social stability, and security
  • Good quality of education and language skills
  • Advanced technological & business infrastructures

Nearshoring is a lot more viable option for small and medium-sized companies that want to increase their online conversions but want to keep their costs down. 

7. Referrals - Focus More on Word of Mouth!

Companies can get tunnel vision when it comes to increasing their reach. They will only focus on spending their time and money on paid advertisement and organic search. This does work but you can also increase your reach and conversions through word of mouth… aka referral marketing.

Referral Marketing

Don’t get confused, referrals aren’t just a gimmick to give products away for free, there is actually a psychological viewpoint that brings customers closer to your business. 

If a user refers a company to their friends then they become a brand advocate. This makes them feel more attached to that brand making them more likely to purchase from them again. 

People are 4 times more likely to buy when referred by a friend (Nieson). 83% of satisfied customers are willing to refer products and service to people they know but only 29% actually do.

The best thing about referral marketing is that it’s basically free and it’s now easier than ever to promote your campaigns due to social media. An effective strategy, carried out correctly, will increase sales and increase your profit margin. 

Click here to see some great examples of referral marketing.

Contact us for any queries regarding digital marketing and increasing your profit margin.

Codedesign is a digital marketing agency specializing in data-driven online sales and lead generation solutions for brands in a variety of verticals. Contact us to schedule a consultation with one of our digital marketing experts.

Add comment