Return on Investment (ROI) is a metric that measures how much money your website makes from digital marketing in exchange for the money you put into it. It is a significant tool to measure the success of your digital marketing expenditure. ROI can be calculated using different metrics. Here’s how;
1. Monthly Visitors – This ROI metric provides analytical data that indicates the number of people who have visited your website every month. Traffic is the most vital aspect of digital marketing. Traffic suggests the impact of your website. It also has the potential to turn your visitors into your customers.
2. Cost Per Lead – CPL is a pricing model where advertisers pay for leads. CPL becomes applicable only when a potential customer appears on your website via an advertisement.
3. Cost Per Acquisition – CPA is a method to understand how much you are investing to gain customers who avail of the services of your website.
4. Return on Ad-Spend – This ROI metric determines the profit incurred through an advertisement and the investment made in executing that advertisement.