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Return on Investment (ROI) in Digital Marketing


Return on Investment
Source: brandbuddha

A lot of systematic investment goes in organizing a campaign but a campaign is successful when the amount of money you have earned is more than the amount you have invested. This is why KPIs are set. Now a student studying in IIM invests 50 lakhs in his studies because he knows that he will get in return on his investment in return a good placement with a salary which will cover up the expenses. ROI i.e. Return on Investment works very similarly.

ROI is nothing but the Return on Investment that you get while or after your campaign has gone live. But how do you measure it? Unlike offline sales plans where you can track your investments by checking out the number of transactions and the amount you have invested to get those transactions, online business is a bit different.

In order to track these things and measure the ROI, there are KPIs that are taken into consideration like traffic generated, number of people coming to the website, kind of visitors coming to the website etc. how do you keep a track of your investments that you will get a good ROI?

Well this can be done by –

1. Monitoring your goals and setting realistic goals.
2. Gathering data in terms of inbound and outbound leads.
3. Making monthly reports with the help of KPIs.
4. By keeping a check on Sales and calculating the ROI.

When I talk about calculating ROI, I talk about yearly or quarterly profits. Also ROI is not only returns in terms of money but also lot more. A lot of surveys are carried out to see whether the brand awareness is reaching the right kind of audience. To check whether the audience is liking the company’s products.

Also Read: Development of Programmatic Audience Buying

Monthly review forms are also circulated among the audiences to see whether the effort which is being put in the campaign both in terms of money and objective has been fulfilled or not. For eg., Closeup as a brand creates a consumer survey asking its audience whether –

1. Closeup is their first choice when it comes to buying toothpaste?
2. If not, then why not and things like that.

Apart from measuring campaign effectiveness, calculating Return on Investment is also very important to track the performance of your campaign.

Author: Ankita Mundhra


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