Friday, July 19, 2019

How can you measure the effectiveness of digital marketing

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How can you measure the effectiveness of digital marketing?

Digital marketing is the craze these days when running an online business. Though some companies are still reluctant in utilizing it, there are numerous organizations  that are already venturing into digital marketing.

Just like anything new, there are questions that need to be answered before fully diving into them. Questions like, How can digital marketing be useful to the growth of the company? or What are the indications that digital marketing is effective for brand growth? Here are some answers to help you feel comfortable in using digital marketing.

What is Digital Marketing?

When it comes to business these days, digital marketing is one of the top trends and  a widely used marketing segment of the modern age. Digital marketing is the promotion of products and services through digital media. This simply means that it is any form of marketing strategy that takes place on the internet and on other digital platforms like mobile phones and display advertising.

Anybody who wishes to use digital marketing for the growth of their brand, products or services needs to know the ins and outs of the game. Using digital marketing also means that you have to adopt to the different marketing approaches and strategies that aim to know and internalize the association between consumers and digital technologies.

How to know if digital marketing is successful?

In any study, research, or processes, you cannot measure success without any goal or objective. The strategy you do online is a product of your goal. The goals also provide guidelines for the metrics you will be using to measure the campaign’s success.

Let’s put it this way, for you to know if a sales agent in a company is performing well in selling, he or she must be able to meet their monthly quota. That is also true with digital marketing metrics. Though it is a little bit more complicated, the concept is similar.

Determining the success of any digital marketing campaign, one needs to have metrics in order to measure if the campaign is working or not in a brand or company. Marketing campaign means that you have to invest on it and justify the marketing budget. As such, you need tools to measure these marketing efforts.

Metrics to measure digital marketing efforts

Every digital marketing campaign has their own set of metrics to see if they are achieving the goals or not. Here are some of the important metrics to measure your digital marketing efforts.

Return on Investments

What is so important with return on investment? Though many do not go directly to measuring ROI, it is probably the most important tool in determining the success of the digital marketing campaign. Think of ROI as the Key Performance Indicator (KPI) in helping to increase sales through the use of digital marketing. If you see the direct correlation between ROI and sales, you will be sure that your efforts are worth doing.

Conversion Rate

This is actually the indicator of the percentage of people completing the desired response on a digital advertisement. For example, you clicked  on the advertisement while surfing the web. After clicking the ad, it asked for you to enter your email address. How about if you clicked on the purchase button? Of course that would be the best conversion rate as the response is buying the product. You are then able to evaluate the effectiveness of the digital marketing campaign as the viewers respond to a campaign. Another way to cut this process short, is to hire someone else to run your digital marketing campaigns and let them report you on the conversion rates and whatnot. Check out to outsource your digital marketing.

New Sessions

This metric gives you an idea how well your digital asset is performing in retaining customers and attracting new ones. Tracking new sessions can be done with the use of Google Analytics.

As new in digital marketing, you might be wondering what Google Analytics is. This is actually free for website owners and provides relevant information and data other than New Sessions. Knowing and understanding the data gives you an idea if your ads on social media, search engines, email, and other platforms are able to attract new customers. Google Analytics also tracks old customers to give you a sense of how effective your advertisements are. This will also help if you need to do some refinements on your website. 

Bounce Rate

Bounce rate is the percentage of visitors leaving the website even before exploring the other parts or areas of the site. If this metric is high, it simply means that viewers are not spending enough time to complete offers on the site. This is also tantamount to saying that even if you have hundreds or thousands of visits in the website, but the bounce rate is high, then you are not making any sales. Just like in New Sessions, Bounce Rate will give you an idea which part of the website needs improvement.

Cost in every aspect

Which do you think is better? Spending $50 for every $100 sales? Or $30 for a lead source that brings $30? Of course, you’d prefer to have a bigger revenue for every dollar spent. If this is the case, it is wise to track the cost of every lead as well as the resulting revenue from those leads.

In a nutshell

Now that you have an idea of the different metrics or tools used to measure any digital marketing efforts, try to bring them together. This will eventually help you create a digital marketing campaign that will bring your company or brand to the pedestal.


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