How to measure ROI of Digital Marketing

Best Practices for Measuring ROI of Digital Marketing

Just when you thought you know it all, internet marketing gives you a new nut to crack. With digital marketers, trends keep on oscillating but the real goal is to keep track of company’s ROI and combine all those statistics, equations and formulas to show profit.

Even today, 90% marketers cannot calculate ROI effectively. So how can you be in the remaining 10% and determine Return on investment (ROI) of your digital marketing efforts? Here are some basics that can get you there with ease.

Where to measure ROI? Choose the Right Vehicles

Email

As stated by Hubspot, 86% of professionals opt for email when communicating for business purposes. Email marketing is really effectivein generating real leads. You can know who opened your emails, who forwarded them, who clicked the links in them etc. And all those clicks can be traced back to conversions/buys from your site.

Video ads

The views on company’s video ads cannot be directly linked to buys/conversions. Only way to make it analytics worthy is placing clickable links on it. 51.9% of marketers say video ads are the best source of revenue these days. So it is highly important to keep track on those views and the clicks they generate.

Website traffic

It is important to converge all digital efforts to one property. All the social media connects across networks should somehow be led to the website. An exit pop up or a referral link must then convert all that traffic into leads. That’s the only way to build an ROI connect.

Social media

In a shocker report, 6 in 10 small business owners are not able to track ROI from their social media activities. (Source: https://www.hubspot.com/marketing-statistics) Social media is the instant sensation in networking; it is also a crucial piece for generating leads, increasing customer engagement and publishing content. Your profiles on LinkedIn, Facebook and Twitter can fetch you right ROI reports if you use their analytics in the right way.

Terms for measuring ROI

Cost per lead

This is an essential metric that enables companies to measure how effective their marketing campaigns are and their capacity to generate leads.

Cost per Lead(CPL)= Cost of Generating Leads / Total Leads Acquired

Lead-To-Close Ratio

This is given by total number of leads divided by Leads closed. A lead-to-close ratio shows how effective is your sales team and the type of leads acquired, which further affects your ROI.

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