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How to Measure ROI in Digital Marketing

ROI Measure

How to Measure ROI in Digital Marketing

Return-on-Investment (ROI) is key to any successful marketing initiative. After all, in business, it’s always important to see if your investments are profitable. While many people believe it’s too difficult to track and measure online marketing efforts, nothing could be further from the truth. The trick is determining what you consider to be a key measurement of success.

There are two classifications of measurements: Quantitative and qualitative. Quantitative measurements can be easily counted, measured or weighed. Qualitative measurements cannot be easily measured and are more sensory, behavioral, and even emotional. While quantitative items are easy to measure, the qualitative takes more effort and analysis. The key to success is to find a way to correlate the immeasurable with the measurable.

In digital marketing, there are quantitative measurements (views, clicks, volume, time) and qualitative (complaints, feedback from surveys). Key metrics often used in digital campaigns to measure ROI include:

  • website visitors
  • click-through numbers on banner ads and email campaigns
  • customer complaints
  • blog comments
  • interactions on Facebook (number of comments/likes)

It’s crucial to clearly lay out how you plan to measure your online efforts and what success looks like to you. Once you have determined what your key metric is, and assigned a Cost-per-Action (CPA) to that metric, you can easily determine your marketing channels ROI. Below are a few key ideas to keep in mind as you plan how to measure your digital marketing:

  • Define and challenge the metrics you’re using for ROI.
  • Understand the audience you’re trying to target and segment them
  • Try variations on a theme on a smaller scale and measure the impact.
  • Tie your non-digital marketing efforts in with your digital measurements.
  • Test and repeat.

If you work at an agency, asking your clients about where they’ve struggled in determining whether their marketing efforts have worked is a great way to begin.

Planning a reasonable and clearly defined ROI is key to successful marketing. What are some of the qualitative elements of marketing you’ve found hard to measure?

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Tags: analytics, measurement, results, ROI,

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