Anil Kumar T
Measuring the return of investment from online marketing is uncertain. The money you invest today will not necessary deliver results in few days or months or even in couple of years, so you must decide as to how much budget are you willing to invest in online marketing. For every visitor it takes at least seven touches to turn them into a potential costumer, this statement might not be accurate but it takes a lot persuasion to turn a random visitor to a potential costumer. With so many other competitors on the website trying to convince every visitor, you must stand out from the rest and impact the visitor in a positive way. There are external factors that affect your ROI that can go unaccounted for example increase and decrease in the economy of the country.
There are several digital marketing programs like email marketing, search engine optimization, pay per click advertising, media channels, social media marketing, website improvements etc. Many companies are confused as to how much to invest in which campaign so that they get to know which one will reap benefits. Many of the online business owners know that measuring the return of investment is important but only a small percentage of them knew how to do it. The main reason to market any website, product or a service is to reach out to the target audience and when you have already carried out a marketing campaign through Online Banner Advertising, PPC (Pay Per Click), SEO (Search Engine Optimization),
Content Marketing and through the other means of marketing, one will be curious to know if that was effective or not.
- According to express pigeon on email marketing, Email marketing has a return of investment of 4,300%. Nearly 66% of the in house marketers say that email marketing is excellent source.
- The stats are from Imforza on SEO, 93% of online experiences begin with search engine. Google owns 65-70% of the search engine market share. 70% of the links search users clicks on are organic.
- Mosierdata take on PPC ads, on an average the top 3 paid ad spots gets 41% of clicks.
How to measure ROI of online marketing program
- Social media today facts on SMM, 93% of the marketers use social media for business. And for 2014 it’s been predicted that from Linkedln 43% of marketers found a customer and from Facebook 52% of marketers have found a customer.
Online conversion goals need to be set before you calculate your return of investment, they are the necessary important actions done by the visitors on your site, this action benefits your business in some form or the other and it helps to strengthen your business. These actions can be for example online purchases on an ecommerce site or a form filled out for lead generation in a social media site. This action is necessary as it brings revenue to the site on that instant or eventually. The conversion goals could be online purchases, fill out forms, fill out contact forms, number of clicks on URL to your website, newsletter sign in, downloads, time spent on website, social interactions, views on articles or videos etc. These goals vary with websites; you need to know what the conversion goal for your business is, they also get affected by third party campaigns.
Once you get to know what your conversion goals is, implement them and track the results. Depending upon which type of conversion goal you have chosen, you can use web analytics tools or the different types of tools available to track conversions for example Google Analytics
, It a free tool but there are several paid tools available online.
To know the return on investment for your online marketing you need to calculate the amount of conversions and also the approx bottom line value of online conversion. Make sure you keep extra budget for the monetary conversion type. For example costumer enquiry forms on the website, these might be small goals but they are important. Plan on how much you are willing to spend on a trusted vendor who will make sure 1,000 forms are filled by potential customers.
As you find out what is your conversion type and how much you are willing to spend then you need to divide that budget on different marketing channels. Know the sources from where traffic is coming to your website, track it and follow its behavior. Web analytics tools are helpful you track the traffic for each conversion goals. To track traffic in Google analytics
: Google/ organic, Google/ CPC, Direct, Facebook.com/ Referral, Plus.url.google.com/ referral etc.
Once you know the amount to be spent on online channels, you are set to calculate the ROI of your business. There are various available tools that help you calculate the return of investment of your business, it lets you import the data on cost and calculates the amount. For example the amount spent for your Google ad words campaign will be automatically calculated in your Google analytics. ROI calculators are available online: pine-grove, easycalculation, bplans, bankrate and many more.
Knowing both your income and expenditure and finding the ROI of your business you must know that the number won’t be exact and they can be uncertain if the marketing activities are not managed properly.
Change your conversion goals if the strategy you have set isn’t making good business for your company, and do a complete research on it ROI before you implement it. The first calculation for ROI will be based assumptions as you will have to take an average on most of the marketing channels but this will help you know which channel is the most helpful and driving your business. Don’t take heavy risk on marketing channels by setting huge budget on them, make realistic decisions. Get to know which campaign gives you the best returns and invest in them.
While calculating the ROI on web analytic tool keep a track of days which affect your business, these days might show significant highs and lows for your business. Keep an open mind, your business can’t hit all records in a day but eventually with your patience and keen observations your company will get good ROIs.
Before you set out on your online marketing strategy for 2014 the most important step is to calculate the return on your investment for the various marketing campaigns that you plan to undertake. Best of luck!