It has been quite some time that Indian brands have adopted Digital marketing as one of the most effective channels. It is regarded as one of the main counterparts for offline marketing and sales.
Most Indian brands are splurging money on their social media endeavors and are also streamlining this to their offline campaigning. Instances aren’t rare when their brand hashtags are equally a part of their Television ads parallel to online media.
What is Digital Marketing, in a nutshell?
Digital Marketing comprises of some specific technologies which when coupled with marketing diaspora can reap returns for the business/brand. IT would mainly comprise of Search Engine Optimization, social media marketing, Paid ads (search & display), email marketing, app store optimization, Whatsapp/SMS marketing and the list would go on.
The important catch line here is about ‘reaping the returns’. Return on Investment(ROI) is one of biggest measures of success for a marketing channel and it’s no different for digital marketing. A good number of entrepreneurs, marketing managers are clueless when it comes to measuring the ROI of digital marketing in tangible metrics. And, this is an issue existing for brands, product companies who are fast embracing digital channels.
Is sales a measure?
The point of Sales (POS) is definitely an ultimate measure of business success. However, can we really tantamount marketing effort and that too on a digital level, to sales directly? No, we can’t! Marketing online can never be a replacement for a persuasion pitch in an offline channel!
Marketing can definitely create grounds for making your sales easier. When your sales executive actually goes out into the market, he becomes better equipped as the brand, by then is already familiar to the masses. And, when it comes to digital, it creates a synergic impact. How? By going digital, you can simply get to multiply your online presence and create multi-level impact. A simple comparison could be like; you create a display banner and host a banner at a popular destination. You definitely don’t get to control the number of people who would see it, it is something that would depend on chance. Now think about placing the same banner online in a social media – if your banner has what it takes to be popular, with little marketing effort it can get shared multiple times, thus resulting into content re-purposing.
So, what could be a measure for calculating Digital Marketing ROI?
In order to measure the success of digital marketing, we can take into account a number of metrics which would help us get a direction as to whether the campaign is performing fine. Though, there could be innumerable ways to calculate this, let’s now take look at the most invincible ones.
Search Engine Rankings:
Getting ranked in Search Engines with targeted keyword definitely increases the visibility of a brand in Search engines. It makes the brand reach out to potential buyers who are looking for a product/service/solution. The ranking is definitely a great measure of Search Engine optimization and Digital marketing as a whole.
Likes and Engagement:
Facebook likes and engagement is a measure of people engaging with the brand. While Facebook likes is just the number of people liking a particular page, Engagement has got more to do with the collective value of people commenting, liking, sharing individual posts.
Cost per like:
Most brands run paid ad campaigns to increase the number of targeted likes. If your brand is really likable, more people would like the page to get associated with the brand which should reduce your per like costing. Lower cost per like is an indication of the fact that you are able to get more and more people connected to your brand at a cheaper cost.
By the term lead, we are trying to talk about inquiries. It’s not really possible to make a direct sale online until and unless it’s an e-commerce platform. You do run ad campaigns like Google Adwords, Facebook conversion campaign in order to secure an inquiry from a prospective buyer who would want to get to know more about the product before making a final decision to purchase.
Cost per acquisition:
This is definitely one of the most important measures which would help you calculate ROI for your media spent. For instance, if you secure 100 leads by spending around 10000 INR, the cost per acquisition comes to 100 INR per lead. The lower the cost per acquisition, the better off you are as you are getting to generate inquiries at a lower cost.
This is too an important measure as it would help you get an idea of the number of pages visited by a unique number of users during a particular time frame.
Traffic from targeted source:
This is indeed one of the most important measures. It’s important to measure traffic contribution from each channel that you would focus on like Search engine, social media, and other referral channels. This can be a true indicator of the channel that is performing good for the site and others which are not.
Measurement of ROI from Digital Marketing is truly important and it can indeed provide guidance to the marketing department of your organization. You get to figure out the exact channels which are reaping the return on your investment which would guide you towards better strategic decisions.