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Measuring Ad Campaign's

Success

Digital marketing has become the standard means of reaching the modern consumer. It has a great Return On Investment, a wide range of strategies that can be tailored to your company's needs, and it will enable you to develop brand recognition and trust.

Digital Marketing ROI?

What is

A marketing team may find it challenging to identify the specific parts of a digital marketing campaign that are responsible for the success or failure of the campaign as a whole. This is where digital marketing ROI (Return on Investment) comes in; it's a means to measure the success of your digital marketing efforts and decide whether or not to reinvest in them.

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An ROI statistic compares the amount of money businesses may expect to make from digital marketing initiatives to the amount you invest on them. The better the ROI, the higher it should be!

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When your digital marketing campaign is routinely reviewed and evaluated for efficacy, it will be stronger and more successful.

Key Indicators for ROI in Digital Marketing

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The basic ROI calculation for digital marketing is simple:

ROI = (Revenue acquired from digital campaign – Cost of digital campaign) / Cost of digital campaign

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How can you determine what is actually influencing the ROI of your online marketing campaign? Prepare to take notes since we'll take you step-by-step through the process.

Here are the some metrics that are most important to consider when calculating the ROI of digital marketing:

Conversion Rate

The percentage of website visitors who convert into customers by completing a form on your landing page or making a purchase is known as the conversion rate. Although having a high traffic website is excellent, experienced marketers prefer this metric since it shows how effectively your digital marketing campaigns are turning browsers into customers.

Cost Per Acquisition
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Cost Per Acquisition, or CPA, is the whole cost of acquiring a customer, including advertising fees and product or service cost. It's an essential measure since it will show you whether digital marketing costs more or less than other forms of promotion, including print ads or television commercials.

Cost Per Lead

Cost Per Lead is the total cost, including advertising fees, to obtain a lead. This parameter is important to look into because digital marketing, which includes social media advertising, can provide more leads at a lesser cost than conventional channels like TV and print.

Return On Ad Spend

The ROAS (return on ad spend) metric assesses how well your digital marketing initiatives are generating sales. This is calculated by dividing the entire amount of advertising revenue by the amount that was spent on the ad campaign. 

Traffic Generated by Channel

The percentage of website visitors who convert into customers by completing a form on your landing page or making a purchase is known as the conversion rate. Although having a high traffic website is excellent, experienced marketers prefer this metric since it shows how effectively your digital marketing campaigns are turning browsers into customers.

Unique Monthly Visitors

Cost Per Acquisition, or CPA, is the whole cost of acquiring a customer, including advertising fees and product or service cost. It's an essential measure since it will show you whether digital marketing costs more or less than other forms of promotion, including print ads or television commercials.

Traffic Generated by Channel

This statistic entails examining the traffic generated by various digital marketing channels. You can clearly see which marketing initiatives or channels are driving the most traffic by conducting an in-depth study with analytics.

Unique Monthly Visitors

In a nutshell, this indication shows the total number of unique visitors who visited your website in a given month. Given that so many digital marketing strategies attempt to increase website traffic, this is one of the most straightforward KPIs you can track.

Customer Lifetime Value

Customer lifetime value is a forecast of the net profit attributable to a customer's entire future relationship.

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