Measure And Improve Your Digital Marketing ROI
Do you know your business numbers? Like many small business owners, you are probably spending marketing dollars on several different channels, like email, pay-per-click advertising, SEO, and others. When focusing on running your business, it can be challenging for business owners to determine which marketing strategy is delivering the biggest bang for the buck. Measuring and improving your digital marketing ROI will result in more leads, sales, and revenue for your business.
What Is Digital Marketing ROI?
The most critical number in digital marketing is your ROI or return on investment. Why? Because it determines whether your marketing investment is profitable. When your marketing investment generates more revenue than what you invest, you have a positive return on investment. For example, you spend $1,000 on a digital marketing campaign that produces $2,500 in sales. That’s a 250% return on investment (profit) – (2,500/1,000) *100, a ratio of 2.5:1. On the other hand, a negative ROI means you are spending more than your marketing campaign is earning (loss). The goal is to achieve the highest ROI for every dollar you spend on your digital marketing campaigns.
How to Measure Your Marketing Campaigns
Like any other business, digital marketing has a series of performance-based metrics that you can analyze for insight into whether the investment is paying dividends for your business. For example, you can measure website visitors, video views, blog impressions, engagement, leads, and sales for an SEO campaign. Analyzing your digital marketing investment results will help you pinpoint the channels that will yield more revenue with additional investment. It will also help you with spotting ineffective campaigns. So, which metrics should you be measuring?
Here are five key performance indicators (KPIs) to measure your digital marketing ROI:
• Average Order Value
• Cost per Acquisition
• Cost per Lead
• Lead Close Rate
• Return on Ad Spend
Top Digital Marketing Strategies to Improve ROI
Now that you know how to calculate your ROI and which KPIs are essential let’s focus on the top digital marketing channels to help improve your return on investment.
Search engine optimization or SEO is an essential digital marketing strategy. Without effective on-page and off-page optimization, your website will have little to no traffic, which means you will have to spend more on search advertising than organic traffic to generate visitors.
Targeted pay-per-click ads on Google, Bing, Yahoo, and other search engines can be a cost-effective method for bringing targeted visitors to your website for competitive keywords, increasing engagement, leads, and sales almost immediately. However, you must have an effective campaign strategy, or you may receive plenty of click-throughs but low or no conversions, resulting in a negative ROI.
Conversion Rate Optimization:
The conversion rate is the percentage of visitors that engage with your website, such as visiting the contact us page, downloading a white paper, video views, and ordering a product or service. So, what is a reasonable conversion rate? According to digital marketers, the average global conversion rate is between 1.4% to 4%. Some industries have higher average conversion rates than others. For example, U.S. e-commerce websites average a 1.4% conversion rate, while healthcare has the highest, averaging 8.9%. Optimizing your landing pages to increase conversion rates is essential for improving your digital marketing ROI.
So, what do you do with all of those leads that your website generates? This is where email marketing can be a very effective digital marketing strategy. Since these customers and prospects have given you their names and email address, it is an ample opportunity to continue building the relationship that will lead to more sales and a better ROI.
Improving Your Digital Marketing Results
Your Digital Marketing & SEO partner is vital to your business, like any other professional, to achieve profitable results from your marketing budget. Your website or landing page can be your best salesperson when it generates a positive return on investment (ROI). At Brandtastic, we have the skills to implement the right digital, content marketing, and website branding strategies to improve your digital marketing ROI in 2022 and beyond.
Frank Motola, President of Brandtastic, has been getting positive results for our clients since 1998. So, give Frank a call today at (813) 441-0275, and let’s get to work improving your Digital Marketing Campaigns to attract more customers (and profits) for your business.