ROI in Digital Marketing

| 16 min read

Marketing is an integral part of every company. Most brands are now using digital ways in advertising their brands, reach target customers, engage and close sales.

As brands use different channels in their digital marketing it is essential to calculate and measure roi of their efforts using the right tools.

The measure of your investment returns with your digital marketing will help to evaluate your lead conversion, sales and company growth, and revenue.

In this article, you will learn more about digital marketing roi and how you can calculate, improve and measure your digital marketing ROI as you market your firm and close more sales and revenue.

What is ROI in Marketing

To start with, ROI is the measure of the profits or losses you get as you market your company to target customers and close sales.

ROI shows how your company is progressing as you keep advertising, marketing, and closing sales.

It’s the results of your digital marketing campaigns as you market to your potential customers, engage them to your brand, build trust and convert them into customers.

Digital Marketing ROI Benchmarks

Businesses use different methods to market and reach their target audience for their company products and services.

To understand your brand with digital marketing roi well you need to gain data and statistics from different reputable sites. You also need to do your own research on your enterprise performance based on the differences.

This will show and guide you how your company will progress and what platforms and channels you should invest more in for high ROI to your business.

Here is a list of ROI statistics from different marketing platforms and techniques compiled by Hubspot that shows the value of your digital marketing roi efforts for your online store.

Here is also data collected by Statista that shows the best digital marketing channels for high ROI for brand marketing.

Digital Marketing ROI

The site also compares the most effective digital marketing channel for marketing in the year 2020.

effective digital marketing channel

Digital Marketing ROI Formula

Here is the formula you can use to calculate your digital marketing ROI from your marketing efforts.


Let’s say for example you run marketing ads for your brand and you invested 2500 in the ad campaigns. After some time you generate 5000 in sales from the ads you run. Your ROI will be:


It is essential to calculate the digital marketing roi to know the marketing progress of your company. You get the data to show how your lead generation, customer acquisition, and retention efforts are doing and what you need to do to get the best and keep increasing your company sales and revenue.

Digital Marketing ROI Metrics

As you run your company, it is essential to track metrics that will help you calculate roi of your brand with digital marketing and know-how your brand is growing.

There are different metrics you can track for your business marketing to help evaluate your enterprise growth. Below are some of these metrics.

Customer Lifetime Value

This is the revenue a brand generates from a single customer over a period of time. It’s the continued purchases a customer repeatedly makes from a company as they use their products or services.

Here is how you can calculate customer lifetime value metric.

Customer Lifetime Value Calculation

Since you know the amount you spend to acquire the customer, you can know how much profit they will keep bringing to your company as they continue using your services or products.

The customer lifetime value will give the profits that a buyer gives your brand from their repeated purchases is essential for brands to give the best user experience and satisfy their customers to retain them for a long time and keep making profits from their purchases.

Unique Monthly Visitors

You use different digital marketing methods in your lead generation strategy for your company. You can track the unique monthly visitors to your website from different digital marketing channels.

These channels can be:

  • The content you create
  • Your ads campaigns
  • Video content you create
  • Social media ad campaigns
  • The social media content you share

From the data, you can see the marketing channels that do well and bring a high number of leads to your enterprise.

Put more effort, time, and resources into those channels to keep generating more monthly visitors to your brand.

This increases your lead engagement and brand awareness where more target customers get to know about your company and the solutions it offers to solve customer pain points.

Cost Per Acquisition

The cost per acquisition metric helps show the customer acquisition cost you spend to acquire a new customer for your brand.

When you know your expenses in getting new customers you can easily know the return on investment from those customers when they start using your services or products.

It will also help you manage your spending on acquiring new customers. It will help ensure you don’t spend more on acquiring the customer than what they spend on what you offer them.

Here is the formula to calculate cost per acquisition.

Cost Per Acquisition Formula

Calculating this metric will help you acquire the right customers whom you can retain for a long time and keep generating more profits for your brand growth.

Return on Ad Spend

Running ads is part of the digital marketing strategy brands uses to reach customers. As brands run ads campaigns it is essential to evaluate the cost of creating and running ads for the company.

For example, you can track down the click-through rates of target customers from your ads who end up converting into customers.

You can calculate the return on investment for this metric by using the following formula:

revenue/total ad costs *100

This will help you know your expenses and regulate how much you spend on running your ads. You can also compare the profits you get through your ads and see if they are more profitable in growing your company. You can easily know the customer acquisition costs and the profits from your marketing ads.

Cost Per Lead

As you run your digital marketing campaigns to generate a high number of leads you have to spend on the process. This metric will help you gauge the cost per lead for your business and you keep running marketing campaigns for your company.

With the cost per lead metric, you can easy to know how much profit you will get from the lead once you close and convert them into customers. Here is a formula you can use to calculate the cost per lead metric.

Cost Per Lead Formula

Lead-to-Close Ratio

Not all the leads you generate for your company will convert into customers. It is essential to track down and calculate the lead-to-ratio metric for your company.

This will help you improve your lead generation process and generate more sales-ready leads for your company.

You will also know the profit from each of the digital marketing efforts for the campaigns you run for your enterprise.

To keep getting more leads with high conversion rates, ensure you create more content that addresses their pain points and show them how you will solve their pains.

Most people engage with video content better, you can create more demos that show them a practical working of your company features and how they can use them.

Average Order Value

Through this metric, you learn the average cost a client spends when they make an order from your enterprise. If the order value is low you can improve it to increase your company profits and revenue.

You can ensure you give your customers the best experience or offer cross-selling and up-selling opportunities to your customers to increase marketing opportunities.

These activities will make sure your customers spend more on your different services or products and increase profits for your company.

Here is a formula to use when calculating the average order value metric.

AOV= (total revenue/number of orders placed)

Email Subscriptions

You can track down visitors who sign up for your email marketing list from the different digital marketing channels you use.

You can also track their engagement with your email marketing campaigns like open rates, subscription rates, click-through rates, or conversion rates.

From the different channels, you can know the best channels to bring more people to your enterprise and then focus more on them for each of your digital marketing campaign.

Create the best lead magnets to attract target leads to sign up for your email list and get their contact details.

As you nurture them, give them the best content and information to gain their trust, educate them and show them the value your enterprise will provide them to solve their challenges.

Content Comments And Shares

As part of your digital marketing roi calculation, you can track down the engagement of your target readers with the content you create for your company marketing.

More engagement means the target readers love and enjoy reading your content which increases your brand awareness.

You can also track down the shares or comments you get from each blog post you publish.

From the engagement data, you can create more of the content that your target readers love to keep increasing the engagement and build more trust with them.

#buildmoretrust #customerengagement

This will draw more target customers to your company and increase engagement and conversion rates. Make sure your content addresses target customers’ pains and are well optimized for high ranking. Use the keywords target readers use in their search for businesses that will help solve their challenges.

Things to do When Measuring ROI

As you consider and measure your marketing return on investment, here are some things to consider:

Use the Right Tools to Collect Data

Data is the key to evaluating and measuring your company’s growth. It is essential to use the right tools to collect data for your company’s growth.

Ensure the data is clean and accurate to help you get the right predictions for your business.

Use tools that will give you different features to collect and analyze your data well.

Have the Right KPI & Track Them

There are many metrics and most of them are vanity metrics. To get the best out of your digital marketing campaigns ensure you monitor and track metrics that can help in your company growth.

#brandgrowth #digitalmarketingcampaigns #metrics

For example, tracking down the metric of the number of followers you have would not be of any financial benefit if they aren’t doing anything for your company. Evaluate and track metrics that will help drive more sales and revenue for your company.

Set Business Objectives That You Want to Achieve

The metrics you track for your business should be in line with the goals you want to achieve. That’s why it is important to have the right objectives and goals for your company marketing even before you start your digital marketing campaigns for your online enterprise. To effectively achieve the goals the sales team and marketing team should work together.

Having the right objectives and goals will make it easy to calculate your marketing return on investment with your digital marketing efforts.

Ensure all of your marketing efforts are doing towards hitting those set targets and improving your enterprise to generate more sales for your company.

#ROI #digitalmarketing

It will make it easy to improve lead acquisition, conversion, and retention for increased sales and revenue.

Use KPI Insights in ROI Measuring

It is advisable to use data from your KPI when you want to measure your digital marketing return on investment. It will help you see how your company is going on and what you can do as you work on giving the best experience to your customers and generating new customers.

Through the KPI insights, you can direct your company on the right digital marketing path and draw more customers to your business and increase your lead generation efforts for more conversions.

You will also know how each of your online marketing campaign is helping measure and improve your business and drive more conversions and sales.

How to Improve ROI in Digital Marketing

As a business marketer, it is essential to keep improving your ROI to generate more sales-ready leads that you can convert into customers for your enterprise.

As you run digital marketing campaigns, there are different things you can do to improve your ROI and make more sales and revenue.

Have Set Specific Goals

Before you start your digital marketing campaigns, you need to have set goals that you can measure for your ROI. It will guide you and help you evaluate how your business is doing and know what you need to improve.

Ensure that your goals are SMART and do all it takes to ensure you achieve the goals during your set time for your marketing.

Run A/B tests

There are different aspects of your digital marketing roi you can keep testing to know the ones that work best.

Ensure you continuously run a/b tests for your online business. Some of the things you can test and optimize your return on investment roi are:

  • Call-to-action buttons
  • Landing page/s
  • Website design
  • Free trial length for your services
  • Business products or services pricing plans
  • Landing page copy
  • Including video demos on your landing pages

As you run your a/b tests there are some mistakes that can cost your marketing time and resources, so ensure you don’t make these mistakes.

Use Automation Technology

Some of the activities you will be doing in your digital marketing efforts for the company marketing take time and are tiring. You can use automation tools to make the work easy and free more time to do other work with your company marketing. For example, you can use email marketing tools to send out your email newsletters to target customers.

Mobile optimization

Most of your target readers and customers are now using mobile devices to access information and search for businesses that can help them solve their pain points.

As an online business, it is essential to ensure that your website is optimized for mobile use. This will help you draw more website traffic to your company and engage more with the target customers.

Ensure your target customers can read and engage with your website content on their mobile devices without any problem.

It is also essential to make the navigation easy and place the most important information above the fold where they can access it with ease. Your website should also have fast loading speeds.

If it takes ages to load, your target customers will leave your company and join competitors even if the website is optimized for mobile use.

#mobileoptimization #loadingspeeds

Avoid vanity metrics

Focusing on some metrics will just be a waste of time. To evaluate and improve your digital marketing roi, ensure you avoid including or monitoring vanity metrics.

Use those metrics that directly relate to your company’s growth, sales, and revenue.

Use The Best Tools For ROI

To make sure you get the best results for digital marketing roi efforts you need to use the right tools to calculate your return on investment roi, track, monitor, and measure your key performance indicators.

Some of these tools to help with digital marketing ROI include:

The tools will help evaluate the company’s growth. Your profits and losses from the roi calculations can help you know how to market your company website and grow your sales.

Create Content That Target Customers Are Searching For

Content marketing is an integral part of your digital marketing roi strategy for your company. As you run and measure your marketing campaigns, it is essential to create content that engages target customers to the company.

Have a content marketing strategy and document it as you continue creating content for your company’s digital marketing roi campaigns.

Ensure that the content for your website is optimized for humans and search engines. Also, use the right keywords your target customers use when searching for information to solve their pain points.

First, understand your target customer’s pain points as you create content for the company website. It will help you match every piece of content to their needs and engage them more with your company and increase the conversion rate.

Digital Marketing ROI Calculator

To help with your ROI evaluation you can use an ROI tool to gauge your enterprise growth from your digital marketing roi efforts.

We developed an ROI tool that can help with all your analysis of your company growth as you market your company to target customers. There are different calculations that you can make for your ROI digital marketing investments for your enterprise. Here is our ROI calculator

STEP 1: When you decide to use the tool, you will undergo three steps. First, you will fill in the basic details about your company as shown below.

Digital Marketing ROI Calculator Step 1

STEP: 2 As you see the basics include your industry projected revenue growth and the target time to achieve that growth. After filing the basic information you add more information about your company.

This additional information revolves around the metrics you are tracking such as average conversion rate, close-ratio average revenue per acquired customer, or completed deal.

STEP 3: Finally, you finish with more metrics like website traffic, percentage of qualified leads, your marketing budget, etc. You then build your report that will show your ROI projections.

Digital Marketing ROI Calculator Step 3


It is essential for every company to measure their positive ROI for their digital marketing efforts.

You need to see the progress of your company and the returns you are getting from investing in different channels and advertising your company to generate leads, nurture them, and convert them into customers.

Using the best ROI calculator can help you track down your company’s marketing progress and know what to fix and improve to keep getting more revenue.

The ROI calculator will give you data from different metrics to monitor your revenue progress and conversion rate from the new leads you acquire for the enterprise.

Use the tool to measure roi and gauge your ROI in digital marketing, also have the best content marketing strategy and plan to grow your company, and keep generation additional revenue.