How to calculate ROI (return on investment) in digital marketing
Posted: Sun Feb 02, 2025 3:15 am
In traditional marketing, campaigns were segmented to a mass impact group, which did not allow you to track the audience that was impacted. In digital marketing, we have tools that allow us to measure it in order to be more effective when planning a budget.
How we measure ROI (return on investment) : It is the net margin between the total investment x 100. This will give us the return on investment, but it has been studied from different angles in digital marketing, and it has other factors that must be measured.
Scope
Cpm
Click through
Website visits
Conversion rate
Customer lifetime value
Average ticket
Each of these data points that we need to measure provides kuwait whatsapp data us with valuable information to develop our campaign budgets. For example, how many people did you impact through your segmentation, how much traffic came to your website from the ads viewed, how many people took an action, perhaps they saw your product catalog or read an interesting article on your blog, they were able to watch the video that explains the benefits of your products compared to the competition or they made a purchase.
All of these factors are measurable, but the difficulty in measuring this is calculating the investment in Digital Marketing and the sales it generates. To do this, you need to conduct a thorough audit of your conversion funnel and optimize your marketing strategy.
Below we are going to present an exercise to measure your ROI.
To increase ROI we have to improve the metrics, for example, the CPM can be improved with more effective segmentation, reviewing the types of buyer personas to be more effective in who we are advertising to and through which channels we are doing it, it is very important to review the distribution channels.
To increase click-through we must be more creative, use different formats: videos, carousels, reels, live selling, all the options that allow us to reach that ideal client and their consumption habits.
Improving the user experience through a UX/UI experience allows you to increase the conversion rate within the website . The more satisfactory your customer experience on your website, the more likely they are to make more than just a purchase.
And I only have to tell you that to improve the CLTV or Customer Lifetime Value we must build loyalty with the brand; they are our best sellers; word of mouth marketing becomes the most useful way to build loyalty.
How we measure ROI (return on investment) : It is the net margin between the total investment x 100. This will give us the return on investment, but it has been studied from different angles in digital marketing, and it has other factors that must be measured.
Scope
Cpm
Click through
Website visits
Conversion rate
Customer lifetime value
Average ticket
Each of these data points that we need to measure provides kuwait whatsapp data us with valuable information to develop our campaign budgets. For example, how many people did you impact through your segmentation, how much traffic came to your website from the ads viewed, how many people took an action, perhaps they saw your product catalog or read an interesting article on your blog, they were able to watch the video that explains the benefits of your products compared to the competition or they made a purchase.
All of these factors are measurable, but the difficulty in measuring this is calculating the investment in Digital Marketing and the sales it generates. To do this, you need to conduct a thorough audit of your conversion funnel and optimize your marketing strategy.
Below we are going to present an exercise to measure your ROI.
To increase ROI we have to improve the metrics, for example, the CPM can be improved with more effective segmentation, reviewing the types of buyer personas to be more effective in who we are advertising to and through which channels we are doing it, it is very important to review the distribution channels.
To increase click-through we must be more creative, use different formats: videos, carousels, reels, live selling, all the options that allow us to reach that ideal client and their consumption habits.
Improving the user experience through a UX/UI experience allows you to increase the conversion rate within the website . The more satisfactory your customer experience on your website, the more likely they are to make more than just a purchase.
And I only have to tell you that to improve the CLTV or Customer Lifetime Value we must build loyalty with the brand; they are our best sellers; word of mouth marketing becomes the most useful way to build loyalty.