In these digital times, where people spend most of their time online, businesses can’t avoid digital marketing if they want to reach and engage with their potential customers. That’s because digital marketing offers a wealth of options like Search Engine Optimisation, Social Media Marketing, Pay-per-click Ads, and more to connect with your audience.
However, with so many options available, it becomes essential for businesses to understand the ROI of digital marketing. So, in this article, we will explore what businesses can expect from their digital marketing efforts and how to measure their success effectively.
What is Digital Marketing ROI (return on investment)?
The ROI of digital marketing means the profit or loss you have incurred from your investment in the digital marketing of your business. A positive ROI indicates you’re getting good results from your marketing campaigns, and a negative ROI shows exactly the opposite: you’re spending more than you’re getting.
It determines whether your digital marketing efforts are generating desired results or not. Your ROI of digital marketing depends on various factors, like your industry, goals, customers and marketing strategies.
What can you Expect from the ROI of Online Marketing?
Brand Visibility
Digital marketing can increase your brand’s visibility and help you reach a wider audience through marketing strategies like content marketing, search engine optimisation (SEO), social media advertising and more.
Lead Generation
Digital marketing strategies like pay-per-click (PPC) advertising, email marketing, and social media lead-generation campaigns help you drive and maintain lead flow. This way, you get to attract high-quality leads that often get converted into customers, leading to revenue generation.
Customer Engagement
When you engage with your customers through personalised content on various social media platforms, blogs, and ads, it makes them feel valued and helps develop stronger relationships with them. It increases your brand loyalty and brings you more business.
Measurable Results
Unlike traditional marketers, digital marketers use powerful tools that track the performance of your marketing campaigns in real-time. They help you monitor your website traffic, click-through rates, conversion rates and more and let you adjust your strategies accordingly for better results.
How do you Measure the Success of your Digital Marketing Efforts?
Track Key Performance Indicators (KPIs)
To measure the success of your digital marketing strategies, you need to identify and regularly track the KPIs. It helps you measure your progress towards hitting your marketing goals. The most important KPIs you need to track are website traffic, social media engagement, email open rates, conversion rates, search engine rankings, bounce rates and ROI.
Use Analytics Tools
Tools like Google Analytics, social media insights, and email marketing platforms help you track and analyse your performance. They provide insights into your audience’s behaviour, your campaigns’ effectiveness and areas for improvement.
Attribution Modelling
Implementing attribution modelling can help accurately attribute conversions to different touchpoints along a customer’s journey. It helps to determine each marketing channel’s impact on conversions and ROI.
Calculate ROI
Subtract the total investment, which is the cost of the campaign, from the total revenue generated. Then, divide the result by the total investment and multiply by 100 to get the ROI percentage. For instance, if your campaign costs £1000 and generates £6000 in revenue, the ROI would be (£6000 – £1000) / £1000) × 100 = 500%.
Continuous Optimisation
Evaluate the performance of your digital marketing campaigns constantly and make adjustments as required. Try different strategies or a combination of them while targeting and messaging, analyse the results, and re-optimise the campaigns to maximise ROI over time.
On a Final Note
Calculating and monitoring internet marketing ROI regularly is essential if you want to run a successful business. Without it, you would waste money on unnecessary campaigns that don’t resonate with your target audience. That’s why hiring an experienced and professional digital marketing agency like Telsa Media is important.
They are a leading digital marketing agency in the UK with almost nine years of experience. During this time, they have helped numerous businesses grow and thrive with their customised strategies and drive good ROI in marketing. Get in touch with them to learn about their digital marketing solutions.
Read also: Maximising Your ROI: What to Expect from a Professional Digital Marketing Services Agency
