The ROI of digital marketing is the measure of the profits or losses you generate in your digital marketing campaigns. Many digital marketing leaders use cost-per-acquisition (CPA) models, as they only pay for leads or sales based on a set quantity or goal. Marketing automation tools can help you achieve more with less, reducing your costs and increasing the ROI of your digital marketing. From there, it's as simple as finding the difference between that value and your total digital marketing spend.
Calculating the exact ROI of a content marketing strategy is a challenge, as most visitors won't convert after reading just one page. Understanding the conversion funnel can help you better adapt your digital marketing campaigns to reach the right audience at the stage of the buying process. To know when measuring ROI is most relevant to your digital marketing campaigns, you must first understand the concept of the conversion funnel. According to Azar, measures that show that a campaign is moving in the right direction can be a stronger indicator of success than ROI.
To determine the cost per lead, you can divide your total marketing costs by the total number of leads you gained thanks to your campaign. Their marketing benefits must be high enough to cover operating costs with the new revenues they generate. The only way to improve your digital marketing campaigns is to know where you stand with respect to the current performance of your campaigns. These are just a few of the issues that most organizations consider obstacles to demonstrating the ROI of digital marketing.
But it can also help you discover new knowledge that can be applied to your broader digital marketing strategy. Digital tracking pixels are elements that can be added to your website to track where traffic is coming from and how you can retarget to those users later as part of your remarketing strategy. Nor can they measure the indirect benefits of marketing, such as the social return on investment. Your marketing team knows exactly how the success of the campaign will be measured so they can focus on finding ways to improve these metrics.
That said, if you're getting more visits to your website and more conversions since implementing a content marketing strategy, and you've noticed an increase in revenue, your content marketing ROI is likely to be positive.