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.

How to monetize your Content through Advertising

Every Website owner works hard to create and maintain his site. He puts content, does SEO & promotion, spends money on ads to get good ranking, traffic and engagement. It’s same like planting a tree and giving it water and fertilizer till it become huge and bear fruit. Once a website has grown and started getting traffic, you can earn money from it.

Content Marketing

Advertising – Advertising is one of the best methods of monetizing your blog or website. You can easily earn money by putting ads on your site; however you need to make sure that you have good traffic on your website and ads are relevant to the content of the website. There are various kinds of advertising structures and programs, choose what is best fit for your website and content.

Pay Per Click (PPC) – As the name suggests, you get paid, every time a visitor click on the ads placed on your website. You can sign up with PPC advertisers for this and they will give you codes to place in the HTML coding of your site. These contextual ads come in various forms like, text, image or both.

You can use them in different sizes and formats such as banner, slider, shadow box, pop-under, Skyscrapers, leader board, rectangles, etc. Google Adsense is the most popular program; however they are many others such as Bidvertiser, Chitika, Clicksor etc.

Cost Per Mile (CPM) –Visitor may click or they may not click on the ads of your website. Ads Paying criteria is different in this model, instead of pay per click you get paid for every thousands impressions. Top CPM advertisers are Tribal Fusion, Casale Media, Burst Media, Technorati Media, etc.

Text Advertising – You can place text ads in the body of your article on some keywords. You can also link your text to a product or a site. You need to sign up first with the advertiser and then you can show ads on the text of your blog/website. Infolinks, Viglink, Vibrant and Built in text are to name a few.

Advertisements not only fetch you some money, it also gives your audience information and choices. For example if you place e- commerce company ad widget, your audiences will get to know about latest offers and discounts. It would let them visit your site frequently resulting in better traffic and engagement.