Metrics to Calculate ROI in Digital Marketing

What is ROI?


ROI is nothing but return of Investment and it is an important factor in digital marketing. In simple term ROI helpful for calculating how much revenue you got out from your digital marketing. At present, digital marketing became an essential one to increase your business revenue level but when it comes to calculating return from it people feel quite hard. If you are running any E-commerce site which deals with B2B concerns and other who sale directly their products on online would find easy to calculate their ROI.


In order to make easy to calculate ROI here are some digital marketing ROI metrics are listed below were some would not directly used to calculate ROI but using these metric you can able to judge whether the business revenue is improved or not.


  • Check for monthly visitors to your site using Google analytics this would give you a graph whether visitors are increased or decreased on monthly basis.
  • Cost per lead: this metric would give you sense whether the digital marketing is effort or not. The cost of lead is generally a paid service for campaigning on other cases if people SEO content writing and website handling then it would be a further lead generation.
  • Calculating ROAS: Return of Ad Spend this metric used to compare the cost spend of ad, revenue and the cost involved in the product made. In simple words the ROI is calculated by terms of net profit / total cost result multiplied by 100. But ROAS is calculated by total revenue/ total spend on ad then result multiplied by 100. Thus when your ROI is 50%, ROAS would 300% this metric is used to calculate whether digital marketing is really giving revenue or not.


Apart from above metric when you hold online sites you can make use of AOV, Average Order Value where customer would get average of rate of product sold. All these metrics would help you to calculate ROI in digital marketing.