Thursday, 14 May 2015
How to Calculate Your Internet Marketing’s ROI
Most will say it’s impossible to judge the value of your internet marketing in a complete or comprehensive manner, and those people are correct, even with the finest measuring tools on the planet. The truth is: there are indicators you can use, along with a bit of common sense and experience, to judge your Return on Investment (ROI).
The amount of conversions that occur while the campaign is in progress
This is an obvious indicator and may be a little crude, but it is a better indicator than web traffic or social media markers. For example: the number of Likes you get on your Facebook fanpage is no indicator of your online marketing success (unless getting social media markers was your goal), and the amount of traffic your website receives is no indicator of value. This is because if the traffic doesn’t convert, then it is worthless.
The amount of conversions that occur when the campaign stops
Sometimes, the true value of your marketing campaign cannot be seen over the campaign period. Sometimes a sharp drop-off of conversions may indicate you were doing something right or wrong. You also cannot underestimate the after-effect of your campaign.
Study your turnover and use a little of your experience
If your sales and/or profits increase because of your online campaign or because you hired an online marketing company, then consider those sales when judging the value of your campaign and your ROI. Common sense comes in when judging effect the campaign has had.