ROI In Marketing

A serious question in the recent past with social or online marketing is where is the ROI [Return on Investment]? Another question might be, “What is ROI in marketing? Does online marketing even have an ROI?” This question mystifies those in traditional marketing circles. Heck, even within social media marketing there is a lot of confusion here. Some social and online marketers have tried to spin ROI’s meaning to things like “Return on Influence”. This is completely absurd if you are investing money into these areas. You need dollars and cents to make sense of this.

So what is the answer to ROI in Marketing?!

This is easy to measure with PPC or pay per click because there is a definitive dollar amount associated with your ads. Google can definitely answer this question succinctly with AdWords. Recently I wrote about Facebook’s paid ad platform that I’ve been experimenting with recently and have been pleased so far.

Determining ROI in marketing is actually easier than you think. You just have to change how you implement your marketing strategies online. Google provides you a free tool in your Google Analytics account that will help you set goals for this. I’m not going to do a tutorial on this tool in this post so I’ll give you an overview.

First you have to identify what a conversion looks like for your business. How does a transaction take place on your website. If you aren’t selling retail products online you may be wondering how to do this. You may need to track offline with your sales team or you may need to create a “call to action” on your site. Something that provides a trigger to notify you who the buyers are.

Once you’ve done this with an eBook or something like that then you can create a subdomain to track who is filling out a form or downloading a free offer. After the new friend has filled out the form or clicked download you will need a thank you page or message after the action has been performed.

Enter that URL in your Google analytics goal tool then you can track it. Like I said, if you don’t sell your product online or if it’s a service you may have to match up your results with your sales team monthly. There are so many solutions that could be customized to your business and most are free. Just get creative! Did this trigger any ideas that I missed? If so what?

 

15 Comments
  • soccermaster1

    I need to hire an agency to manage my search marketing campaigns. What are the right questions to ask potential agencies so I know I’m making the right decision? What should I look for?

    May 24, 2013 Reply
  • brincks26

    i would prefer an answer from someone who has acutally been a marketing analyst. i could simply look up a job description online but they are mostly broad generalities. thanks!

    May 30, 2013 Reply
  • Zack Faria

    Not talking about fly by night carlton sheets crap here. More interested in long term rentals What guidelines whould I have for ROI etc?
    Not looking for tips. I am looking for what criteria you use when evaluating a property.

    June 14, 2013 Reply
  • Sergio

    Health insurance agents as many other sales type occupations, businesses are an obvious transformation of an effort to market a product to an income from sales (clients getting medical insurance plans).
    If you are experienced in either being an agent or being a marketing specialist what do you think are the most economically (ROI) and time (dollars invested per sales per week) efficient marketing methods?

    June 15, 2013 Reply
  • Franklin Bluth

    I want to learn more about the social side of the internet. I keep hearing stories from social marketing Gurus but they come with too much hype. How can I learn the basics for meaningful social collaboration?

    Thanks for any replies 🙂

    June 22, 2013 Reply
  • fattiemanny

    If I am looking for a good creditable web marketer or marketing team, how do I go about it and do you have any suggestions?

    June 23, 2013 Reply
  • Rassling Fundamentals

    i want to know the importantof marketing in bisiness and the effect of it to our economy.

    June 23, 2013 Reply
  • Erin

    I’ve heard about a lot of people being scammed by overseas companies or they didn’t produce the greatest results. I’m hoping someone can suggest a company that they’ve had good experience with. I need help with search engine optimization, social media marketing and pay per click management.

    June 30, 2013 Reply
  • Jeffery Carlson

    I just wanted to know if email marketing is dead or not? Like is still the best way to market products and services? Especially within the Internet marketing niche?

    August 8, 2013 Reply
  • Kaylla

    I’m trying to build a website that focues on penny stock investing. In my opinion, the potential ROI of this market is so huge it makes some of the risk worthwhile.

    The trick of course, is finding and timing your trades. And that leads to my question: How do you find the best penny stocks to trade? I appreciate your constructive input and will adjust my website http://www.penny-stock-advisor.com to reflect good ideas.

    August 14, 2013 Reply
  • Victoria T

    I will put in: CPI/CPM, ROI, Reach,

    Which of these should I put in:
    d.LTV (Lifetime Value)
    e.Churn rate
    f.Break even analysis
    g.Retention rate
    k.Frequency
    l.Conversion rate

    This is for a school project. The business is distributing samples on a street corner.

    August 17, 2013 Reply
  • Ray D

    For business i need to evaluate what you should consider when starting a business. Why is marketing a factor to consideR?

    August 29, 2013 Reply
  • gail C

    i m a small new investor,i hav started investing with rs 10000,i do what my subbroker tells me..but i want to be selfdependent while choosing shares in the market.what things i should analyse before picking up any share.?what should i do?

    September 2, 2013 Reply
  • Jamal

    Trade shows are a very lucrative way to market your business, but are you able to measure your success from the event?

    September 2, 2013 Reply

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