Return on Investment(ROI) is a significant part of digital marketing, it measures both the financial and non-financial value of the specific marketing strategies implemented by a business.
When developing and measuring the effectiveness of a campaign it is essential for a business to see both the positive and negative elements.
This allows them to change and implement more successful initiatives to ensure the desired result is being achieved.
When defining ROI each business must be viewed as an individual to determine their goals and what they want to get out of and from digital marketing.
This then allows an attributable value to be associated with these goals which can be then measured against Key Performance Indicators of the business to rate and track the success of each set of initiatives.
Digital marketing, on the other hand, is not the value of marketing initiatives but the actions and use of digital platforms by a business to promote a business.
It utilizes multiple channels to communicate and monitor customer responsiveness, leads and sales to optimize a customer’s overall online experience.
The two work simultaneously together as one is a generator of profit, compared to the other which is just the measure of profit.
Thus, to put it simply, the ROI tracks the digital marketing invested in each initiative and both the non-financial and financial result from each.
Tracking both monetary and non-monetary effects of marketing initiatives
When implementing campaigns the return is to be viewed from a ‘personalised’ view so that the ROI is measured in the most appropriate and applicable way to the business.
This means sometimes we will not only be focussing on the exact dollars and cents spent as not all businesses may not choose to financially invest in things like pay-per-click(PPC), Google AdWords, search ads and display ads.
Because PPC and AdWords can get costly for extremely competitive keywords or phrases, some business’ may prefer to attract and reach out to their customers by utilizing a broader solution
Free platforms enable natural growth, this choice varies and is dependent on the stage in the company life cycle, e.g. the approach taken at 6 months will be entirely different to the approach taken at 2 years.
Measuring ROI financially at times can be challenging and it may also tend to portray an inaccurate picture, this is explored in the article
Content marketing can be measured through things like social shares, re-tweets, filled out contact forms, subscriptions and browsing time as these conversions are tied to the content.
When measuring the ROI on these factors it is useful for a business to have set measurable benchmarks and a relative time frame so that results are determined by an applicable scale and KPI’s can be reviewed to measure success.
Because each business is different, determining the most appropriate campaign tracking means will vary greatly on the goals, aims and the overarching plan for each business.
When determining the success of content the main question to be asked is- Have I reviewed my KPI’s? have my goals been met?
This ensures content is stimulating interest. For a new online business, developing KPI’s and promoting a business can be both a daunting and challenging experience, but combining the two and how this can be simplified is explored in this article, combining the
The more relatable and attractive you can be to the customer the better, thus incorporating both natural and paid growth in strategic thinking will enable a more holistic view on the returns of the business and will ensure the most effective marketing outreach is being implemented.
Spectrum of Change
The Sphere of digital marketing is a never-ending spectrum of change leaving businesses in the middle- where to go and what to do next?
It is important to remember that this notion, although unfamiliar at times, is easy to navigate with a business plan and flexible marketing initiatives in place.
Connecting with customers online has never been more accessible and through social media platforms and SEO techniques, prospective clients are never more than an arm’s reach away, so what are you waiting for?
Utilize the digital platforms you are surrounded by and start connecting.