When you are in the digital marketing field, you need to know to measure ROI in marketing. Unless you’re strictly an E-Commerce website, calculating digital marketing ROI is extremely challenging. This is especially the case with firms that concentrate on services, B2B, and other industries where you aren’t directly selling products online. Most of these metrics that we are going to see now help analyze the profitability and as a result of this digital marketing. What is the ROI in marketing? How to measure marketing ROI?  These are the most asked questions anywhere you go. 81% of all the marketers say that they will definitely increase their spending on digital and social channels if only they could track ROI better. To understand marketing ROI, here are metrics you cannot fail to understand.

One of the most significant digital marketing metrics, cost per lead gives you a general idea of whether or not the digital marketing efforts you put are profitable or not. This is a metric where it involves paid marketing and traffic as you know that organic traffic is free. You need to be able to understand by this one ROI metrics that you can make sure that the conversions align. It is up to you as to how you are going to make sure that every step you take is going to take will help you. The cost per lead is directly calculated via AdWords and they are also called cost per conversion.

Whereas, on the flip side, organic side, you are not paying for the minimum lead basis. You are actually paying for SEO Strategy and also for the complete content marketing. This is basically the cost of each effort and they can be difficult to track per lead cost.

  • Monthly visitors

This metric digital is related to the number of people coming to your website. This is a very broad metric in the sense that you do know that marketing investment in this is very valuable and the traffic is quite volatile too. Hence, you need not any calculations for this part as this directly taken into account by Google Analytics. If you have vale based metrics, then you can look at this space.

  •  Cost Per Acquisition

In this age of internet marketing ROI,  this metric tells exactly what and how much you are paying to grab the actual customer. This is not just a lead. You can look at the online marketing metrics and look at the real-time for paid campaigns. This doesn’t directly show the value of the SEO efforts. So when you get together the lead sources, then you will see the actual online marketing metrics that are the Customer Acquisition Cost across all the digital efforts. This CPA or CAC is generally calculated by the total digital marketing expenditure by the number of acquired customers.

  • Return on Ad Spend

When you are focusing on what is marketing ROI it is a very useful metric when you can tie the revenue directly to the digital marketing efforts. When you think of it this way ROAS is the total revenue divided by total ad spend multiplied by 100. Basically, in return on ad spend, it focuses on revenue instead of profit and they also take the ad spend as the main factor. Also, they focus on the cost of goods sold and not any other costs. If you were to calculate your ROAS, then you need to spend 100 pounds on ads and then get 300 pounds as revenue as a result. The product takes 100 pounds to make. Then, here the ROAS is going to be 300% and then ROI would be just 50%.

To understand and work with this metric, you need to fully understand it to a degree where you will get to understand the profit margin and know what ROAS percentage you are at.

  • Average Order Value

Simply termed as AOV, this is one such metric that is the most useful for all the E-Commerce stores and their services. This B2B can also be used as the next metric too. Average Order Value or AOV tells you how much value every customer for you is by their purchase. And if you are aiming for e-commerce, then you can multiply this AOV value by the repeat rate so that you can get that Customer Lifetime Value ratio also.

  • Lead to Close Ratio

One of the most important ROI metrics is that they simply calculate it by the total number of leads by how many leads have been closed. It is quite useful for marketing return on investment and sales efficiency measuring. This particular ROI online metric tells if the leads are of high quality or not. They can also help to protect digital marketing ROI. Now, if you want to know how to arrive at the right projected digital marketing ROI, then we know that the Lead to Close Ratio, the Cost per Lead and the Cost of Goods Sold (COGS) are the metrics we need to focus on.

Digital Marketing ROI

For example, if we have a lead to a close-ratio of 4 or 5 that means we have 20-25% of the leads. The cost per lead is for supposing 10 pounds, then the LTV would be around 200 pounds. And the cost of the goods sold over the lifetime would be 80 pounds.

  • Branded Search Lifting

When you are sure that this is one of the ROI metrics you need to catch hold of, then we have no doubt too. This is the metric that is measuring the increase in brand awareness of particular overtime and as a result a test of the digital marketing efforts. You can do this calculation by simply beginning to track the number of search queries and inquiries that will include the brand name every month. As and when you track this, this will reflect your branded search lift and how it is simply the best in calculating the searches of the brand receives by a particular user.


Hence, the ROI marketing metrics and stats help in rocketing your market and getting a good client acquisition rate. It is also of great help in giving the marketers a boost in spending more on marketing and also obtain a return on investment analysis. Hence, these are a few metrics that you need to keep in view. There are a lot of metrics to understand but for now, these are the most important.

Author Bio

Manan Ghadawala is the founder of 21Twelve Interactive which is one of the best mobile app development company in India and the USA. He is an idealistic leader with a lively management style and thrives raising the company’s growth with his talents. He is an astounding business professional with astonishing knowledge and applies artful tactics to reach those imaginary skies for his clients.

Load More Related Articles
Load More By itsmyownway
Load More In Digital Marketing
Comments are closed.

Check Also

A Comprehensive Guide to Finding a Uvalde Physician

Key Takeaways: Researching physicians in Uvalde is vital to ensure high-quality care. Cons…