Digital Media ROI: How to Determine Its Effectiveness

In the highly segmented, complex world of digital media, results and analytical data can be obtained on a real-time basis. However, the challenge is being able to calculate the return on investment (ROI) of this never-ending stream of information and communicate it to those decision-makers who sign off on marketing budgets.

When you have multi-faceted digital marketing campaigns that are focused on multiple audiences, it can be difficult to keep track of what’s working and what’s not, as well as where it’s best to allocate resources. One Google AdWords campaign may be highly successful, but others may be lagging in results. A single email blast can generate many click-throughs, but this doesn’t necessarily mean that they translate into leads or sales.

In the simplest terms, the goal of any digital media effort is to generate relevant traffic and ultimately generate qualified leads and increase sales and revenue. Yet, the question is how best to track these efforts to determine if your goal is being achieved. The following are a few of the most valuable sources of data to evaluate your campaigns’ effectiveness.

Website Analytics
Because your website is truly the storefront for your organization, it’s absolutely essential to have your finger on the pulse of who your visitors are and how many are converting. This means analyzing your visitor traffic to understand their behaviors and their needs. Google Analytics is an invaluable tool for determining your digital media ROI because it enables you to measure online sales and conversions, as well as gain valuable insights into how visitors find and use your site and what makes them come back again.

Need to drill down and find the ROI of just one campaign? Google Analytics can provide great detail about a single landing page to help you determine the effectiveness of your content. Other ways to accomplish this are to provide a dedicated phone number for each digital marketing campaign or a specific promo code for site visitors to use. These unique markers are easy to track for the purpose of calculating ROI.

Social Media Analytics
One of the many benefits of an organization taking the time to build exposure on social media is to access the analytics that these channels offer. Every social media channel, including Facebook, Twitter and Instagram, offers amazingly detailed analytics that enable you to track the success of what you share, especially Facebook’s conversion tracking pixel method. From posts to advertisements and interactions, learning who is responding to your content, as well as if they are converting, can help guide your marketing strategies and determine the value of what you’re putting out there for your specific audiences.

Email Analytics
Do you have an extensive email list? If you’re already sending out email blasts in the form of newsletters or promotions, you will want to carefully assess the metrics on how many recipients are actually opening your content and then clicking through to take the next step. And of course tracking how many of those clicks to your website result in conversions.

Putting It Together
When it comes to determining the overall effectiveness of your digital marketing efforts, you need to first generate the data from each individual campaign and then review them collectively to gain a greater understanding of the big picture. With a 360-degree view of where your online audiences are coming from, where they are going and how many are converting, you can calculate the value of your digital efforts and develop a deeper understanding to improve your results.

– Hear my talk on how to prove a return on investment for digital media at this year’s IABC Heritage Region Conference in Ohio. 

Speaker | Author | Digital Marketer

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