How to improve your digital marketing ROI

digital marketing ROI
digital marketing ROI

ROI of digital marketing: When it comes to digital marketing, we often think a lot about things like “viral content” and “hustle and bustle.” While the buzzwords of this industry can be tempting to focus, the truth is that these elements of digital marketing do not tell the whole story.

These metrics cannot give you a clear idea of ​​how time, money, and effort will affect your organization’s results in your brand’s digital marketing efforts.

If you want to understand better how the different mobile parts of your digital marketing campaign are affecting your business, you must measure the ROI of digital marketing.

If you are allocating your budget effectively and making the most of your marketing spending, the only way to measure the return on investment is safe.

Next, we will delve into what digital marketing is and what it can measure for your own business. We will also provide you with a quick list of useful and practical steps that you can use to improve your return on investment over time.

What is the ROI of digital marketing?

The ROI of digital marketing, based on the amount of money you have invested, is the amount of profit or loss you get in your digital marketing campaigns.

In other words, this measure tells you if you get the value of your money from your marketing campaigns. If you have a positive investment expectation, it means that your promotions are generating more money than you spend.

Showing the ROI of digital marketing is essential because it is blind marketing without measuring it.

What we mean by that is that if you do not measure the success of your campaign over time, you will not know how you are doing it and what you are not.

And if you don’t measure the ROI of your promotions, you can’t know for sure if you’re wasting money or spending your digital marketing budget intelligently.

The measurement of digital marketing ROI is essential from an improvement perspective. Once you have identified which areas do not work as well as your performance, you can take adequate measures to analyze and improve these aspects of your promotion.

Knowing the ROI of the different aspects of your campaign helps you better understand where to allocate your marketing budget to get the best results.


Most companies are just some of these problems that digital marketing identifies as an obstacle to demonstrate ROI.

How to measure ROI digital marketing?

Determining your digital marketing ROI is not as easy as it comes with different campaigns and compares it with the cost.

Not all campaigns have the ultimate goal of transformation.

Some campaigns are intended to raise awareness. Others try to attract customers to the marketing funnel.

In the end, how to measure the ROI of digital marketing will depend on what your unique objectives are. You have so much data available in Google Analytics that you can turn your head.

That’s why we’ve put together a list of the most common digital marketing metrics we use to help you measure ROI:


  1. Conversion Rate

The conversion rate is a popular metric used to track the return on investment over time. If your marketing campaign goals are going to be converted, conversion metrics will tell you how well you are achieving this goal.

It informs you what you are doing and where you can allocate your resources for better results and a better return on investment.

When it comes to conversion rates, there are some things you will want to look for.

You also want to see which channels are becoming better. If you find that some of your media become better than others, you may want to invest more in improving the RII on these channels.


You should also see the conversion rates per device.

If you find that a device has a lower traffic rate than Starley’s conversion performance, then it’s time to revisit your promotions for that device.

For example, mobile devices often generate a lot of traffic. But many users have difficulty becoming mobile users. When you see this trend for your business, it’s time to start rethinking your mobile digital marketing campaigns.


  1. Spend for lead

If the goal of your digital marketing campaign is to gather new potential customers for the closing of your sales team, you must measure how much you are paying for each new potential customer. This will help you discover how to reinvest for that particular promotion.


To calculate the cost per potential customer, divide the campaign total or campaign expense by the total number of potential customers responsible for that promotion. If you find that the cost per potential customer is higher than you can

  1. Start rate

It is also essential to closely monitor your lead index. This is something you are already doing yourself. However, there is a good chance that this information is not integrated into the online analyzes it collects.

Carefully following your index of potential clients gives you a better idea of ​​how effective digital marketing campaigns are, contributing to your return on investment.

Verify your lead closing rate with the leads that are being generated. This will help you understand how profitable each marketing campaign is.

You can use this information as a criterion for new digital marketing campaigns. If you find that the new drives are closing the main potential customers at a lower rate than the average price, it may be time to adjust some.

And if you have a salesperson or a business development manager, you should also monitor this metric. This proportion will help you assess whether they are useful in what they are doing. It tells you what percentage of lead you get when you sell it in interest. While other things can determine the effectiveness of your work, this metric close to lead is one of them.

  1. Acquisition Expenses

The expense of your acquisition tells you how much it costs on average to acquire a new customer. To calculate the cost per acquisition, divide your total marketing expense by the number of sales generated.


Knowing how much it costs to acquire a new sale can help you better understand your return on investment. If you spend more than what a customer brings to your company, you have a negative return on investment. This suggests that you should show your marketing campaigns again and find ways to reduce your acquisition expense.

  1. Average order value

The average order value (AOV) is another important metric that can help you better understand your digital marketing ROI. This metric tracks the average dollar amount spent on a customer order. To calculate the AOV, divide the total revenue by the order number.

Each company wants to increase the number of orders over time, but it is also worth focusing on the average value of each order. Being able to increase the average price of a warrant even by a small percentage can generate thousands of dollars in new revenue!

Improvements in AOVs are often as simple as providing a better user experience or showing sales-sales or cross-selling opportunities more effectively.

  1. The lifetime value of the customer.

The lifetime value of a customer is an important measure to understand their digital marketing ROI. This metric tells you what an average customer will spend his entire life as a customer.

Although the cost of initial customer acquisition is high, the use of this metric can give you a better idea of ​​the overall value of the customer.


For example, suppose it costs you $ 100 to acquire a customer. And that customer buys the initial $ 100. At first glance, it does not provide a positive ROI. However, if this same client spends $ 100 per month in the foreseeable future, the initial investment of $ 100 would have been worth it.

When you look at the long-term gains to obtain from the client, it gives you a new perspective on the cost of the initial acquisition and your ROI.

Of course, it will not leave the initial loss for each first-time customer. But the ability to look beyond your first purchase gives you a more clear perspective on ROI.

ROI uses digital marketing strategies.

Above are some standard metrics that you can use to measure the ROI of your marketing campaigns. However, it is essential to keep in mind that the metrics you use to calculate your promotions will ultimately depend on the strategy you are using in your advertisements.

The metrics you use to measure the ROI of email marketing are not the same as you can use on social media.

Remember, the metrics you use to measure ROI in different marketing channels will depend on your goals and objectives.

With this in mind, here is a quick list of metrics that digital marketing can use to measure ROI based on the strategies you are using:

  • Email

    open rate, click rate, bounce rate, subscription rate, conversions, and leads

  • Social networks 

    interaction rate, click and click rate, conversions, potential customers won, and new fans or followers

  • Landing page

    traffic, unique visitors, returning visitors, total page visits, time spent on the page, actions taken, and conversion.

. Blogs

traffic, clicks, time spent on the page, unique visitors, recurring visitors, steps are taken, and conversions.

Comparing year after year

When analyzing your ROI data, you should refrain from analyzing the data month by month.

Instead, look at the comparisons year after year. This will give you a good idea of ​​how digital marketing campaigns are improving over time.


Most companies are not even sure if they are satisfied with their ROI … they probably don’t know how to measure it!

Here are four ways to improve your digital marketing ROI

Once you start measuring your digital marketing ROI, you can look for areas for improvement. Here are some tips to help you measure ROI and improve the outcome of your organization:

  1. Identify your goals early.

As we mentioned in the measurement section of the previous ROI, before you start measuring the digital marketing ROI, you should know what your advertising objectives are. If your goals are not clear, there is a good chance that you will not use the correct metric to track your REI.

The first step to measure and improve your return on investment in digital marketing is to identify clear objectives that allow you to achieve objective results.

Avoid vague and transparently defined goals, such as “raise awareness” or “create more conversions.” Instead, make sure your goals are smart: specific, measurable, attainable, relevant, and time-limited.


Make sure all the goals you create for digital marketing are smart.

You can make it smart, starting with a vague goal. For example, suppose your plan for a specific promotion is to increase conversions. You must ensure that it is more precise and measurable.

Then, you must make sure it is a deadline. Therefore, adding a timeline such as “quarterly 3” or “within six months” ensures that you have a goal to meet.

As accessible and relevant as it is, it depends on your specific promotion. Be sure to choose a measure that can be achieved in the allotted timeframe.

Also, make sure that whatever goal you choose is related to your overall plan and the digital marketing campaign in question.

Developing a smart goal for each campaign before implementing the strategy is a great way to make sure you’re on the right track to success. Without explicitly defined objectives, you cannot accurately measure your ROI. And if you can’t measure ROI, you won’t find a way to improve it.

  1. Use KPIs that are directly the same as your goals.

Once you have clearly defined goals and goals, you should be sure that you have chosen KPIs that are consistent with these goals. KPIs, or key performance indicators, are vital metrics or goals that you measure your progress on. The KPI for SEO will be different than the KPI for email or social marketing. If you do not have a KPI, there is no way of knowing how close you are to achieving this goal.


Be sure to consider the following when developing your digital marketing KPI.

Make sure the KPIs you choose is related to your set goals. For example, if your goal is to increase conversions, you can use sales metrics to measure progress toward the goal of conversion measures.

Using KPIs to track the progress, you can see how close you are to reaching your goals.

KPIs not only help you track progress toward your campaign goals. But they also allow you to set clear expectations for your marketing team.

With established KPIs, you can avoid any communication or misunderstandings about what you are trying to achieve. Your marketing team knows how to measure the success of a campaign so you can focus on finding ways to improve these metrics.

3. Try different goals, offers, frequencies, and messages.

Testing is an essential part of improving your digital marketing ROI. Not only does this help improve the performance of personal digital marketing campaigns, but it can also help you discover new knowledge that can be applied to your broad digital marketing strategy.

The only way to be sure which elements of your digital marketing campaign are affecting your success is to try them out. You can run A / B tests on various aspects of your digital marketing campaign to see which components deliver better results. From email marketing to social media content and PPC advertising, every element of your promotion can benefit from extensive testing.

When you take an A / B test, you should choose an element of your promotion to try. For example, if you are testing a landing page, you can start with the title. Change the copy of the title in one experimental version and keep the other one the same. Then, try to figure out which one works best.


When testing A / B, only change one item at a time, so you know which variable is affecting performance.

Once you know which elements of your promotions work best, you can make strategic changes to current and future marketing campaigns. And it doesn’t just apply to the same type of advertising. You can apply changes to different campaigns through channels and strategies.

For example, suppose you find that certain types of messages resonate better with your PPC or Facebook ads. Then, not only can you make changes to your PPC advertising message, but you can also make changes to other elements of your digital marketing, such as email marketing messages.

4. Identify and utilize critical opportunities for improvement.

Just tracking metrics over time is not enough. If you want to maximize your return on investment, you need to adjust your promotions based on what you’re looking for. Data itself is not an essential part of digital marketing activity metrics. By analyzing this data, you will get crucial ideas that will help you develop your brand.

Once you have completed some experiments and tracked your measurements over time, you will begin to notice some trends or areas of opportunity. These opportunities for improvement are unnecessary. Run new tests based on your quest to regularly find new ways to make your promotion better than ever.

For example, suppose you use transformations by the device as one of the metrics. When you measure this percentage over time, you will find that certain demographic factors, such as young people, prefer to use mobile devices. If you want to increase your return on investment by increasing the number of conversions on these devices, you may consider distributing messages and offers on your mobile promotion in response to this segment of your target audience.

Another reason you can see when analyzing data and looking for new opportunities is that you use different channels for your campaigns, and people tend to convert during the week or day. Observing these elements will help you improve the distribution of your marketing content or advertising as part of your digital marketing campaign.

Final thoughts on the benefits of digital marketing

Understanding the effectiveness of current campaigns is the only way to improve digital marketing campaigns. The ROI of digital marketing is one of the most accurate ways to measure the success of promotion over time. This evaluation helps to link the success of your advertising to the results of your organization, which is often overlooked when conducting a marketing evaluation.

It is important to remember that you need to identify measurable goals before you begin measuring the ROI of digital marketing. The metrics used to measure ROI depends on the purposes and the channels through which they are achieved. No matter what medium you use or how you measure your ROI, the key to improvement is continuous measurement and coordination.

Improving the return on investment in digital marketing can be difficult. It is difficult to determine which areas of activity require coordination, including many events for digital marketing activities, not to mention all this data processing, especially if you do not know what to look for.

So it can help you get some guidance from a digital marketing company. If data is not your thing or you want to get back the investment you want from your digital marketing campaign, please contact us. We encourage you to understand what you are currently doing and help you find the most effective way to promote your campaign.


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