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Digital Marketing: It’s a Numbers Game

Let’s face it: most digital marketing strategies are a numbers game, and the following equation is the Holy Grail:

Impressions (number of views) X Click-Through Rate (U.S. average for all sources is about .17%) X Online Lead Conversion Rate (average is 2.5%, but it ranges from .5% to 5%) X Closing Rate Over Time (which can vary from 1% to 10% with the right system)

Now let’s simplify this: ((Views X CTR) X Conversion Rate X Closing Rate = Digital Marketing Deals

Here are two common mistakes brokerages make:

Mistake No. 1: Falling in love with one metric, such as click-through rate (CTR). We’ve seen Facebook ads draw CTRs of nearly 9 percent, which is excellent. But, Facebook converts those clicks at .5% or less. These two metrics don’t offset each other. Facebook still a good lead source, you just need to work a lot harder as it produces lower quality leads.

Mistake No. 2: Putting all your eggs in one basket. Some firms or teams go all in on Facebook, SEM, listing portal leads and more. The problem is that those leads are mostly buyer leads. We recommend diversifying and equally targeting and generating buyer leads, seller leads and sphere leads. You can use digital marketing to accomplish all of these effectively.

Know your metrics or use the common metrics to gauge your ROI.

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