To calculate it, use this formula
Posted: Sun Jan 19, 2025 8:43 am
How to Measure Digital Marketing ROI
At its heart, ROI measures how much money a marketing campaign has generated. To calculate this, you can use the following formula:
ROI = (Net Profit / Initial Cost) * 100
For this equation, net profit is calculated by subtracting the initial investment cost from the revenue it has generated.
We multiply the result by 100 to express the ROI as a percentage. The higher the percentage, the more successful the marketing campaign has been. Anything below 100% indicates that the marketing campaign has made a loss.
While the ROI calculation is useful, it’s not the only indicator of a marketing campaign’s success. Depending on your company’s unique goals, tracking other metrics may also be helpful.
Return on Ad Spend (ROAS)
Return on ad spend (ROAS) is very closely related to ROI, only instead of calculating the return from an entire campaign, it measures the return of a single component.
It’s useful when you may be testing a new type of advert or content and don’t wish to wait to determine the success of an entire campaign before deciding whether or not to pursue it.
:
ROAS = (Revenue / Cost of Ad) * 100
Click Through Rate (CTR)
The click-through rate is useful if your digital marketing campaign is designed to build brand awareness and drive lead generation.
It will tell you how many of the people that have seen your croatia cell phone number database marketing have clicked one of its links and arrived at your landing pages, giving you an idea of how enticing your digital marketing is.
You can calculate it with the following formula:
CTR = Number of Clicks / Number of Impressions
How to Improve Digital Marketing Strategy ROI
How to Improve Your Digital Marketing ROI
Now that you understand the ins and outs of digital marketing ROI, it’s time to look at how it can be improved.
Set Goals
Setting relevant, achievable, measurable goals is a good first step for many business strategies, including improving your digital marketing ROI.
For example, say you’re marketing enterprise business fax solutions. Your main goal may be to attract more B2B clients.
Having clear goals helps to steer your digital marketing efforts and ensures that everybody on the team is working towards the same target.
Track Relevant KPIs
The KPIs (key performance indicators) you track should be relevant to your goals. This will provide you with useful, actionable insights that will help you boost your digital marketing ROI.
For example, if your current digital marketing campaign aims to boost conversions, then you should ensure you’re measuring relevant metrics such as conversion rate.
This will allow you to determine how successful your campaign has been at boosting conversions and, therefore, whether it’s providing a good return on investment.
Identify Areas of Improvement
As you track your metrics, you’ll be able to identify any areas in which your digital marketing strategy may be underperforming.
For example, if you’re struggling to attract new B2B customers, it could be that your marketing isn’t highlighting the positive impacts your product can present to businesses.
At its heart, ROI measures how much money a marketing campaign has generated. To calculate this, you can use the following formula:
ROI = (Net Profit / Initial Cost) * 100
For this equation, net profit is calculated by subtracting the initial investment cost from the revenue it has generated.
We multiply the result by 100 to express the ROI as a percentage. The higher the percentage, the more successful the marketing campaign has been. Anything below 100% indicates that the marketing campaign has made a loss.
While the ROI calculation is useful, it’s not the only indicator of a marketing campaign’s success. Depending on your company’s unique goals, tracking other metrics may also be helpful.
Return on Ad Spend (ROAS)
Return on ad spend (ROAS) is very closely related to ROI, only instead of calculating the return from an entire campaign, it measures the return of a single component.
It’s useful when you may be testing a new type of advert or content and don’t wish to wait to determine the success of an entire campaign before deciding whether or not to pursue it.
:
ROAS = (Revenue / Cost of Ad) * 100
Click Through Rate (CTR)
The click-through rate is useful if your digital marketing campaign is designed to build brand awareness and drive lead generation.
It will tell you how many of the people that have seen your croatia cell phone number database marketing have clicked one of its links and arrived at your landing pages, giving you an idea of how enticing your digital marketing is.
You can calculate it with the following formula:
CTR = Number of Clicks / Number of Impressions
How to Improve Digital Marketing Strategy ROI
How to Improve Your Digital Marketing ROI
Now that you understand the ins and outs of digital marketing ROI, it’s time to look at how it can be improved.
Set Goals
Setting relevant, achievable, measurable goals is a good first step for many business strategies, including improving your digital marketing ROI.
For example, say you’re marketing enterprise business fax solutions. Your main goal may be to attract more B2B clients.
Having clear goals helps to steer your digital marketing efforts and ensures that everybody on the team is working towards the same target.
Track Relevant KPIs
The KPIs (key performance indicators) you track should be relevant to your goals. This will provide you with useful, actionable insights that will help you boost your digital marketing ROI.
For example, if your current digital marketing campaign aims to boost conversions, then you should ensure you’re measuring relevant metrics such as conversion rate.
This will allow you to determine how successful your campaign has been at boosting conversions and, therefore, whether it’s providing a good return on investment.
Identify Areas of Improvement
As you track your metrics, you’ll be able to identify any areas in which your digital marketing strategy may be underperforming.
For example, if you’re struggling to attract new B2B customers, it could be that your marketing isn’t highlighting the positive impacts your product can present to businesses.