How to Measure Return on Investment in Digital Marketing

One must know thing in a business is how to measure the results of an investment? It is often done by comparing investment and gain. Profitability is of one of the major goals of every business activity and it is measured through Return on Investment (ROI). Best thing about Digital Marketing is that its result is measureable through various analytic tools. A Good ROI is the main expectation of a company when it opts for Digital Marketing Services.


ROI is a widely used profitability ratio, a high ROI means increased profit and business. It is important factor while preparing Digital Marketing Strategy and allocating budget on different activities such as advertising, Email Marketing, SEO, Social Media, etc. There is always a question which Digital media channel provides best ROI? Here are some of the tips to help you find the answer.

Email Marketing – Email Marketing takes less effort and provides better results. If you have an established business/website you may have an email data of your customers/visitors. By using that data you can boost sales of your products and services. It you don’t have email database; it will take time to build one still the result is worth efforts.

PPC Advertising – PPCis all about data so you can measure everything including ROI. You need to make a dedicated landing page for your ads and analyze the traffic of your website. Cost of acquiring a lead/sale can be easily tracked in this method.

Search Engine Optimization (SEO) – Most of the websites use analytical tools like Google Analytics to study the data of their website. It gives in dept details about traffic sources, demographics of audience, etc. Search engine visibility on relevant keywords and website ranking are performance measures in SEO.

Social Media Marketing – Tracking ROI in social media marketing can be challenging as its result is often intangible such as engagement, reach, awareness, etc. It is also measured with number of page likes, fan & followers, retweets, repins, etc. With the help of some tools such as Google Analytics, Bitly, Google Link Shortner, Twitter Analytics and Facebook Insight, you can track your social media ROI. There are many third party tools such as Hootsuite, Socialmention, Klout, Buffer and Keyhole to determine your social media ROI.

Tracking ROI in Digital Marketing is not a difficult task depending on the measurements. Roughly performance parameters can be divided in to two categories, quantitative and qualitative. First can be easily measured and calculated but the second one needs deep analysis as it is intangible.

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