Measuring ROI (return on investment) is a crucial practice that allows you to know whether the money spent on digital marketing campaigns is worth it or not. It’s not just a number, but a key to understanding the success of your marketing efforts over a period of time. In this blog, we discuss different strategies to measure the ROI of your digital marketing campaigns to help you reach your goals and improve ROI.
What is Digital Marketing ROI?
Digital marketing ROI measures the profit and loss of revenue generated through digital campaigns. It indicates if you are able to budget effectively and spend funds wisely. A positive ROI suggests that your digital marketing campaigns generate more money than you spend. At Aphonic Solutions, the best digital marketing company in Rajkot, we have a track record of curating ROI-centric digital marketing campaigns for clients, backed by our extensive expertise and experience. From social media marketing, SEO, and PPC to ad campaigns, we ensure you make the most out of these channels for your business.
How to Measure ROI of Your Digital Marketing Campaigns?
Below mentioned are some metrics to use to measure the ROI of your digital marketing campaigns:
- Unique Monthly Visitors
The monthly visitors metric shows how many users have visited your site on a monthly basis. This can be tracked with tools like Google Analytics, showing to segment traffic by paid, social, organic, and other.
- Cost Per Lead
This metric helps determine whether your digital marketing campaigns are profitable or not. Cost per lead concerns with paid traffic. This can be calculated in AdWords or other advertising platforms. However, in the case of organic traffic, you pay to the SEO agency.
- Cost Per Acquisition
This metric speaks about what you are paying to convert the lead into an actual customer. In paid campaigns, you can find this in real-time, but it may CPA may not directly apply to SEO. To calculate the cost per acquisition, take the total digital marketing spend and divide it by the number og customers acquired.
- Returns on the Ad Spend
This indicates the revenue earned for the ad spend. However, it does not take into account other costs like the cost of goods sold.
To calculate ROAS, digital marketing ROI= Net profit/total cost, then in that case
ROAS= Revenue/Total ads Spend
- Track The Average Order Value
This metric shows how valuable the paying customer is each time they make a purchase. AOV is prominent if you have an e-commerce store. To calculate AOV, multiply it with a repeat rate.
- Determine Your Click Through-rate
The click-through rate shows how many people have visited your website or app by clicking a link that you have posted, like an email campaign or linked advertisement on other channels. This helps to show how many people are clicking on your content apart from your website to reach you. To calculate CTR, you take the number of clicks and divide it by the total number of clicks.
These are some metrics that you can use to measure the ROI of your digital marketing campaigns. Tracking these elements helps you see the trends in the market and make the most of the opportunities to increase ROI. Aphonic Solutions Offers the best digital marketing services in Rajkot to drive ROI. Our comprehensive range of digital marketing services includes SEO, SMM, PPC, SMO, and much more, ensuring that all your digital marketing needs are met. Thrive in the online space with our digital services.
