metrics for digital marketing

1. UNIT – I: Digital and Social Media Analytics
Module 2:
Basics of Digital Marketing: Contents
 Display, search, and social media advertising ecosystems;
 Common metrics and defining KPIs;
 Attribution;
 Evaluating ROI and allocating funds;
 Segmentation and targeting.
What is Paid Advertising?
The terms "advertising" and "marketing" are sometimes used interchangeably, but advertising is
one component of marketing. They share the same objective to put your product, service, or
manufacturing business in front of consumers. Advertising falls under the umbrella of marketing
and sits next to other components like social media and public relations.
What are Search Ads?
With the ubiquity of Google, Bing, and Yahoo, it’s little wonder that search ads have become the
most common form of paid advertising. Search ads are linked to certain keywords, and they
appear along with your search results when a certain keyword or phrase is entered into the search
engine. This particular form of advertising is especially smart because it places your ad in front
of people who are already interested in your industry, service, or product.
With this approach, search ads can provide strong, high-quality leads for new customers. And
because these individuals are already searching for a related item, there is a much higher
likelihood that you’ll be able to convert these leads into actual sales. These ads are also very
simple and straightforward in their design — usually just a set amount of text — making it easier
to use as a marketing strategy.
This simplicity can also be a drawback, however, as the lack of visuals and images in the ad
itself can make it harder for your ad to stand out among others and engage new customers.
Despite the simplicity, search ads can also be fairly expensive, as there is usually a great deal of
competition surrounding them.
Pricing points vary, and since you're paying for each click, those clicks can add up — especially
if you cannot convert the majority of click leads into sales. Also, because the ads are linked to
certain keywords or phrases, getting your message out to a wider audience can be difficult.
What are Display Ads?
Display ads are another popular form of industrial paid advertising that many companies use.
These ads appear at the top, on the side, and in the middle of web content on almost every

2. website. Display ads are known for their effectiveness — they reach more than 90% of people
who surf the internet.
In fact, this high visibility gives them a wide reach among users to generate new traffic to the
target site. Since these types of ads are fairly common, they face less competition and are less
expensive than search ads. They’re also much more dynamic than search ads — allowing you to
use a mix of images and text to create an ad that can really engage your audience. With fewer
limitations, your ads can be personalized to fit your brand.
While the wide presence of display ads means that they can get you a lot of exposure, their
prevalence can also be their downfall. Because they have inundated people’s screens for so long
—what feels like since the beginning of the internet — many people don’t notice them or ignore
them altogether. This can translate to a very small number of actual clicks on the ad.
The prevalence and oversaturation of display ads have made many people associate them with
spam, making internet users less likely to click on them. Many people go so far as to install ad-
blocking plugins on their internet browser to limit the number of ads that filter through their
screen. If your targeted audience uses an ad-blocking plugin, you could be wasting your
manufacturing marketing budget on ads that might not even be seen.
What's key to making display ads work for you is choosing a platform that specifically has the
buyers you want to do business with. Your advertisement should also be created with your
buyers' needs in mind — don't make the ad all about you.

3. Social Media Advertising Ecosystem:
Content
Content is king when it comes to
digital marketing. It always has been,
and it always will be. Content is on top
of the ecosystem exactly because of
this. It’s the fuel that fires the social
media engine, and without it, there is
no fire. But not all fuel is the same.
Some is just normal gasoline, while
other kinds of content can act like
rocket fuel! What type of content is
which?
• Original Photos
This is going to be one of the most popular because it’s really the easiest one to create. There are
so many different things you can take pictures of that will resonate with your audience. You can
take pictures of you, your team, your business, your services, your products, your events, your
parties, your successes, your disasters, and everything else you can think of that you can tie to
help you tell your story. You don’t need any fancy equipment (the smartphone in your pocket
will do just fine) to take really awesome photos that will do great on social media. Authentic and
organic photos are well worth the time and thought over ever posting stock photos.
• Original Videos
Another type of content that is amazing. Video almost always resonates better than photos, but
it’s definitely harder to make the right way. Editing a video takes a lot longer than throwing a
filter on a photo, and it takes more to think of video that will do well on social media.
Great video ideas include videos of you creating your product, showcasing services, and talking
to the camera to give tips to just name a few. One thing to remember is that while what you do
might not feel very interesting to you, to someone else it might be the coolest thing ever!
• Graphic Design
Sometimes you need something a little extra to get your message across on social media. That
something extra could be some sort of graphic design!
In a lot of cases, you won’t have to go out and learn how to use Photoshop to get something that
will work for you. There are tools available (ex., Canva) to do this. You can easily create
graphics, remove backgrounds, or even create simple video overlays to take things up a notch!
• Website Blogs, Articles, or Other Posts
There is a lot of content that can be incredibly useful for social media from your website too. If
you’re good at or enjoy writing, this is a way for you to really shine. Being able to write blogs or
articles that live on your website can be awesome for you to share across your social media
platforms. If you make sure it’s content that is beneficial to your following and is something
they’ll want to share, that content will do great!

4. Social Media
Where you actually get to post your content? What platforms you should be posting on? Here are
few platforms that one can work with.
• Facebook
Facebook is the “catch-all” of social media marketing. Most content can have success on
Facebook, and most people use it.
• Instagram
Instagram continues to grow and got its name for becoming the photo platform, but has since
developed all different sorts of unique video abilities. Stories are the huge advantage of
Instagram as well and give you another great tool.
• Twitter
Good old Twitter is best used for having real conversations. Do the exact opposite your mother
always told you and start up conversations with strangers to get the most out of Twitter! It can
take a lot of time and extra effort to have success here, but it can also pay much bigger
dividends.
• LinkedIn
LinkedIn is a no brainer in the B2B space. While it is known as the business platform, it has
become much less formal than it used to be and there are a lot of creative things any business can
do on it…. Even if they aren’t B2B.
• Snapchat
The key to Snapchat is documenting. It’s very authentic, and it’s very much used by the younger
generations.
• TikTok
The biggest platform in today’s landscape is TikTok, it should be used if you are trying to target
a younger demographic with your messaging. Be ready to be creative on this platform and spend
some time learning the lingo… a little bit of research will go a long way for you here!
Social Media Paid Advertising
For better or for worse, social media ads have become a necessary part of a social media
strategy. Organic reach on most social media platforms is not great, which means the content you
worked so hard on won’t be shown to every one of your followers. Enter paid ads. You don’t
need to go and break the bank to really be successful with paid ads. If you’re a local business,
you’ll be able to get by with $100/month and still hit a huge amount of your target market.
Paid advertising on social media is a lot more powerful and affordable than most people typically
think. You basically are able to pick who your ad is shown to by targeting them by things such
as:
 Age
 Sex
 Demographic
 Interests
 Career
 And much more

5. Since you’re able to really narrow down who sees your ads, you’re able to eliminate a lot of
irrelevant impressions and clicks of your ads. This alone is one of the key reasons why social
media ads are so powerful and overall better than older types of advertising, especially for small
businesses.
Website
Moving along the ecosystem, next up is the website. Your website is where a lot of the
information you want your visitors to see. Your products for sale, the services you offer, the
location of your business, and whatever else you want them to see.
Your website is the home of your online presence, and it’s incredibly important for a lot of
businesses to succeed online. While there is a lot social media can do, there is still a lot that a
website does better. Showcasing services, serving as an online store, and hosting articles/blogs to
name a few of the most important.
Digital Marketing KPIs
Digital marketing KPIs are used by companies of all sizes to measure their marketing results. It
is often said that 80% of the outcome comes from 20% of your input. The same rule applies to
marketing activities. But where should you focus your marketing efforts and resources? Many
digital marketers rely on marketing KPIs to make decisions and assess their marketing data in a
more organized and informative way.
What is marketing KPI?
Marketing KPI (Key Performance Indicator) is a measurable value that marketers use to evaluate
success across all marketing channels. Popular marketing KPIs include Cost Per Lead (CPL),
Marketing Qualified Leads (MQL), Cost Per Acquisition (CPA), and Website Visits Per
Marketing Channel.
Marketing KPIs can be divided into five main categories:
 Lead generation
 Website & traffic metrics
 SEO optimization
 Paid advertising
 Social media tracking
Lead generation
To evaluate whether your lead generation tactics pay off, monitor the cost-effectiveness of your
lead generation channels and customer acquisition.
1. Monthly new leads/prospects
This widely used metric indicates the number of new leads acquired in the past month. A
new lead can be someone signing up for a free trial or creating an account on your online
retail site.
How to measure: Get the latest data, and filter leads by dates to see the number of new
leads during a particular period.

6. How to improve: Increase the budget of cost-per-click ad campaigns, create SEO-
optimized content to be found through search engines, and try new temporary discount
offers.
2. Qualified leads per month
Monitoring the number of qualified leads shows whether your marketing campaigns are
effectively focused on targeted leads or just generating traffic that’s not your prospective
audience. Prospects, who have the potential to become a paying customer, can be
categorized into three groups:
Marketing qualified leads (MQL) – leads that the marketing team decides to forward to
the sales team.
Sales-accepted leads (SAL) – prospects that the sales team has accepted and will follow
up on.
Sales qualified leads (SQL) – leads considered prospective customers, leading to
focused attention and moving the leads further into the sales cycle.
How to measure: Categorize all leads in your sales funnel by using a CRM software.
Filter prospects by tags and dates to see the exact number of monthly qualified leads in
each qualification category.
How to improve: Create highly targeted campaigns to reach the right audience.
3. Cost-per-lead generated
Cost-per-lead (CPL) shows the cost of acquiring a new prospect. Complemented with the
cost-per-conversion metric, you can evaluate whether various marketing activities are
profitable.
How to measure: Sum up the time, resources, and money spent on marketing activities
and compare the results to the number of monthly leads.
How to improve: See what types of free and paid campaigns work best for you and
increase the budget and time spent. In addition, create and share quality content on social
media to get (almost) free website traffic and new leads.
4. Cost per conversion
This marketing KPI shows how much it cost to acquire leads that also converted to
paying customers. While an advertising campaign can generate hundreds of leads for you,
often only under 2% of them turn to a client. If the cost-per-conversion is lower than your
customer lifetime value, your digital marketing strategy is wasting resources instead of
generating profit.
How to measure: Depending on your lead conversion time, it might be useful to track
this metric with a two-month time gap (as it takes time for leads to convert). Calculate the
monthly cost of time and resources spent on a lead acquisition source, i.e., Adwords
campaign, blog content, social media management, etc.
Next, use your marketing or CRM tool to see how many of that month’s leads from a
particular source have converted into paying customers since they entered your sales

7. funnel. Divide the total monthly cost of a lead source with the number of conversions to
see how much acquiring a new customer cost you.
For an accurate cost-per-conversion metric, monitor different marketing channels
separately. This way, you find the most valuable lead sources and can focus your energy
and resources on amplifying these channels’ reach.
How to decrease: Create highly targeted marketing campaigns. Improve the user
experience of your service or product, provide help materials and set-up guides.
When managing PPC advertising campaigns, always measure the cost-per-conversion
instead of cost-per-click, impressions, and other vanity metrics.
5. Average time of conversion
Monitoring the time for leads to convert into paying users shows the effectiveness of your
sales process. If the conversion time is too long, your prospects might lose interest in
your service or product, and you might end up losing them to a competitor.
How to measure: Use your customer database software to collect data about the dates of
acquiring a new lead and turning them into a paying customer. Calculate the average time
between becoming a lead and converting into paying client (or have your CRM tool do it
for you).
How to decrease: Make time-sensitive discount offers and provide helpful guidance
throughout the buying process. Use remarketing ads to remind your leads to your
product.
6. Retention rate
This marketing KPI shows the number of clients who keep using your product over an
extended time period and make repeat purchases. By monitoring the retention rate, you
see how well-engaged your customers are.
Here’s a quick formula: Retention Rate = ((CE-CN)/CS)) x 100
CE = number of customers at the end of a period
CN = number of new customers acquired during a period
CS = number of clients at the start of a period
How to improve: Provide excellent user experience and product/packaging design.
7. Attrition rate
Also called churn rate, this metric shows the percentage of customers no longer buying
your products or services. Increased churn rate may be a sign of poor user experience or
slow service performance.
How to measure: Monitor how many clients have stopped paying for your services or
ordering your products during the past year. Calculate the attrition rate as a percentage of
your entire customer base.
How to decrease: Similarly to the retention rate, the churn rate depends on the quality of
your services.
8. Net promoter score

8. How likely is a client to recommend your product or service to a friend? According to
Net Promoter Network, there are three levels of customer advocacy:
Promoters (score 9-10) are loyal enthusiasts who praise your company to others and drive
your sales.
Passives (score 7-8) are satisfied, but unenthusiastic customers who leave when they see
a better offer.
Detractors (score 0-6) are unhappy customers who spread negative information about
your company and can damage your brand image.
How to measure: This marketing metric can be measured on a ten-point scale by
conducting customer surveys and interviews. The easiest way is to ask this question in
the follow-up email of a product order or new subscription.
How to improve: Provide the best customer care you can think of. Offer benefits and
information that your customers didn’t even expect to receive.
Website & traffic
9. Monthly website traffic
In addition to overall traffic, monitor the number of visits to multiple page categories
such as your homepage, pricing page, blog, landing pages, etc. Use those figures to
evaluate which parts of your website have the highest conversion rate and apply the best
practices to other pages as well.
How to measure: Use an analytics tool, such as Google Analytics.
How to improve: To increase your website traffic, you can either spend more on paid
(cost-per-click) advertising or create SEO-optimized content to gain visitors through
organic search.
10. Returning vs. new visitors
By measuring the percentage of returning visitors, you see how engaged your audience is.
For example, a low return rate to a blog page might indicate that your content isn’t
compelling enough for people to come back for more.
How to improve: Provide helpful information on your blog and landing pages; use
remarketing ads to remind past visitors of your brand and offers.
11. Visits per channel
Understanding your inbound traffic sources helps to determine the most profitable
marketing channels. If you’ve recently run a paid ad campaign, you can assess it’s a
performance by looking at how much traffic (and leads) it has brought.
How to measure: Set up ref codes for paid campaigns to have a complete overview of
the traffic they generate.
How to improve: To increase paid traffic, create ads with compelling images and a
convincing value proposition. For organic traffic, improve your SEO by interlinking your
website’s pages and providing helpful content.
12. Average time on page

9. This metric is especially important for organic search traffic as Google ranks pages based
on their relevance. The higher your website’s average time on site, the more likely you
rank well on search results and convert more visitors to leads.
How to improve: Provide more compelling and useful content; add more information on
your pages. Complement your landing pages with colourful images for organized and
easy-to-read text.
13. Website conversion rate
A page might be visited thousands of times. But the bottom line is that if it doesn’t
convert, there’s no use in directing paid traffic to this site.
How to measure: Google Analytics gives you an excellent overview of every page’s
conversion rate.
How to improve: Test out things that could improve your landing pages’ conversion rate
– change the CTA (call to action), add images or change bits of text.
14. The conversion rate for call-to-action content
If you’ve created web pages or content with a clear call-to-action, you should measure
whether these convert. This marketing metric is especially useful if you’re using pay-per-
click campaigns to drive traffic to specific pages. By comparing the price per conversion
and customer lifetime value, you’re able to evaluate the sustainability of your CTA
content.
How to measure: You can set up website events on Google Analytics to track every
single click on your CTAs and content.
How to improve: Present a compelling value proposition, add more CTA-s to your pages
and content, test various call-to-action messages to see what works the best.
15. Click-through rate (CTR) on web pages
CTR shows how effectively your site’s call-to-actions attract people’s attention and make
them click for more information.
How to measure: Use a heat mapping tool or Google Analytics’ Behaviour Flow tool.
How to improve: Use links to connect different landing pages, blog articles and case
studies. Create CTA messages that make people want to click on these.
16. Pages per visit
This marketing KPI shows whether your site navigation is set up in a logical order and
includes compelling call-to-action.
How to measure: Use Google Analytics Behaviour tool to see how many pages an
average visitor looks per session.
How to improve: Make your website as easily navigable as possible.
SEO (Search engine optimization)
Organic traffic from search engines is one of the most profitable lead channels for digital
marketers. SEO metrics focus mainly on organic traffic and acquiring highly targeted leads.
17. Inbound links to a website

10. Measure only the quality links from pages with high page ranking. The number of
inbound links shows whether your content’s shared on other sites. It can also indicate
whether you’re considered to be an industry expert in a certain field.
How to measure: Use SEO tools such as Moz, Alexa, or SEMrush to crawl the web and
see all inbound links to your website.
How to improve: Inbound links come with a reputation, so establish your brand as an
industry expert to be included in news, articles, and reports.
18. Traffic from organic search
This SEO metric shows the number of monthly website visits that come through search
engine results from Google, Bing, etc.
How to improve: Improve your content to rank higher on search engine result pages
(SERP). See a comprehensive guide by Neil Patel to improve your website’s SEO
rankings.
19. New leads from organic search
Monitor the number of new leads that found your brand through a search engine query.
Track this KPI as a percentage of all new leads to assess the value of organic search to
your sales and profits.
How to measure: Use marketing analytics tools to monitor how many leads came from
the organic source.
How to improve: Make it a priority to rank high for targeted keywords that are closely
related to your service or a product offer. Create an SEO strategy and publish content that
supports your keyword ranking goals.
20. Conversions from organic search
This KPI shows whether your keywords that rank high in search engine results are linked
to your value proposition. A low organic conversion rate indicates that you might have
high-ranking keywords that confuse the audience and deliver wrong messages about your
service or product offer.
How to measure: Use your CRM tool and categorize paying customers by dates (e.g.,
past month) and lead sources (organic search).
How to improve: Create an SEO strategy to rank high for highly targeted keywords.
Next, ensure that your lead-to-customer approach is efficient and makes people want to
sign up for your service or order your product.
21. Page authority
High page authority helps your content and landing pages perform well in search engine
results. You can monitor your page rank with various SEO tools such as Moz and
SEMRush.
How to measure: Use Moz’s browser extension for a quick overview of every single
page’s authority.

11. How to improve: Interlink to pages on your website. If you have a blog series on a
particular topic, ensure that all the articles link to each other. Moreover, you need to get
some inbound links from different domains.
22. Google PageRank
This website metric is calculated by Google using various algorithms to determine the
importance of web pages. It is based on the quality and quantity of inbound links that
direct to a given page.
How to measure: Use a page rank checker to see the value of this SEO metric.
How to improve: Get more inbound links to your website through guest blogging and
pitching your brand to journalists. Create quality content that people want to share and
link back to. Fix any broken links on your website.
23. Keywords in the top 10 SERP
When people search on Google, they rarely go through the second page of search results.
In fact, if position #1 gives you the average click-through-rate of 32.5%, ranking as #11
results in a 1.0% CTR.
How to measure: Use different SEO software or tools, such as SEMrush.
How to improve: Create quality content and include the variations of the same keyword
on your website. Link to other relevant pages on your web page to build an entire
network of interlinked content.
24. Rank increase of target keywords
At the end of each month, monitor how your top keyword rankings have evolved. Track
the number of increased and decreased keywords to see whether your SEO strategy is on
its course.
How to measure: All SEO tools give weekly and monthly reports on your keyword
rankings.
How to improve: Research your competitors’ best-ranking keywords to get new ideas for
your SEO strategy. Find ways to get new inbound links from websites with high page
authority.
25. Conversion rate per keyword
If you can find a keyword that’s attracting a remarkably high number of paying
customers, it can be a real goldmine. This means that the keyword is attracting a highly
targeted audience. If a keyword has a high conversion rate, find related keywords, and
create content to rank high in SERPs with all of these.
How to measure: Use your CRM tool to track customers with organic lead source and
use the landing page data to see how a customer-first found out about your site. To be
able to do this, you need to connect your marketing and CRM tools with Google
Analytics.
How to improve: You can improve the landing page experience of every single keyword
by providing additional information and quality image content.
26. Number of unique keywords that drive traffic

12. There’s simple logic – the more high-ranking keywords you have, the more traffic you
get. Monitor this SEO metric as a month-over-month trend to see whether your newest
keywords start to bring more traffic.
How to measure: SEO tools give you weekly reports on keyword performance,
including the estimated search traffic by keyword
How to improve: Create new SEO-optimized content with multiple variations of a
keyword. Complement your old content with links to the new page using many keyword
variations in the linked text.
27. The volume of traffic from video content
With video becoming an increasingly used format in digital marketing, you should
include it in your SEO strategy. Studies have shown that videos are over 50 times more
likely to appear on the first page of search engine results as part of the blended results.
How to measure: Look for the traffic that comes from video sources (add “video” tag to
all video links to filter report results quickly).
How to improve: Upload videos directly to YouTube, embed the video onto your
website, and create a video sitemap.
Advertising
Many businesses fail with paid advertising as they forget to evaluate their ROI (return on
investment) profitability. Add some of the advertising KPIs to your monthly marketing overview
to improve your ads and save resources.
28. Leads & conversions from paid advertising
Monitor the number of monthly leads and conversions from cost-per-click advertising as
a percentage of overall results. This way, you get an overview of your non-paid
marketing performance.
How to measure: If you’re using Google Adwords, the results are outlined in your
Google Analytics account. To make sure that Google Analytics tracks all your
campaigns, set up ref codes for each.
How to improve: Improve your ad copy and only create highly targeted keywords that
are related to your unique value proposition.
29. Cost per acquisition (CPA) & cost per conversion
As acquiring leads and customers through cost-per-click advertising can be quite
expensive, it’s important to monitor the ROI. You might even go as far as to include this
metric among other financial KPIs monitored by your company.
Compare the number of cost-per-conversion with your customer lifetime value to ensure
your campaigns are profitable in the long term. You can also monitor the cost per
acquisition, but it’s cost-per-conversion that reflects the actual profitability of paid
campaigns.
How to measure: This KPI should be calculated with a two-month time gap as it takes
time for leads to convert. Calculate the monthly cost of all resources, time, and money

13. spent on paid advertising campaigns. Divide it by the number of that month’s leads that
have converted to paying clients.
How to improve: Target paid keywords with little competition (find highly targeted
long-tail keywords). Improve your landing page experience and provide helpful sales
materials/customer support.
30. Click-through rate on PPC advertising
This advertising KPI gives you an overview of the effectiveness of your pay-per-click
campaigns. If the CTR is low, it means that your ad content isn’t compelling enough for a
person to click on it.
How to measure: All advertising tools show the click-through-rate of every single
advertisement. Collect the data to calculate the average monthly CTR.
How to improve: Test something new every month – change your Facebook ad design,
improve your ad copy, change call-to-action text, etc.
Social Media
Your social media efforts should focus on two core ideas: building an engaged community and
turn them into customers.
31. Traffic from social media
Monitor this social media KPI as a percentage of all visits and follow the monthly trend
to understand the importance of various channels to your website traffic.
How to measure: Use Google Analytics reports for a free overview of your website’s
traffic sources.
How to improve: Acquire large followership, share interesting posts, create social media
campaigns to increase awareness and get likes, shares, and followers.
32. Leads and conversions from social media
While many marketers consider social media to be a brand awareness channel, it can also
serve as a profitable lead generation tool. Monitor the number of monthly leads and
conversions from social media to assess this channel’s efficiency in your marketing
efforts.
How to measure: Use your CRM tool to track all prospects and customers with “social
media” lead source.
33. Conversion rate
To measure how well-targeted is your social media lead generation, track the number of
leads that become paying customers. The conversion rate shows the actual ROI of your
social media marketing.
How to measure: After collecting data about your leads and conversions from social
media, you can easily calculate the conversion rate by dividing the number of leads with
the number of conversions.
How to improve: Create highly targeted social media campaigns, target your
competitor’s audience, improve your sales process. Further, A/B test your ad elements –
design, copy, CTAs, etc.

14. 34. Managed audience size
Monitor the number of followers per channel month-over-month to see whether your
audience stays engaged. Increasing followership is a sign that your social media posts
attract attention and engage new people over time.
How to measure: Use a marketing tool or simply check your social media channel
reports to get insight into your post engagement and new followers.
How to improve: share engaging content, create social media campaigns, ask your
friends to like your page for increased awareness.
35. Engagement rate
This social media metrics show the number of people who have actively engaged with
your posts (shares, likes, clicks, etc.) Measure it as a percentage of your total number of
followers.
How to measure: Use marketing tools (Moz, Hubspot, Buzzsumo, and the like) and
social media reports on engagement and use the data about your total followers to
calculate the engagement rate.
How to improve: See 21 tactics to increase your social media audience, including tips
for increased engagement by CoSchedule.
36. Mentions
How often is your brand talked about on social media? Monitor the monthly trend of both
positive and negative remarks to evaluate your brand image.
How to measure: Use a mention tracking tool and make sure to adjust it’s parameters
and tracked keywords for accurate reports.
How to improve: Give people something to talk about – an incredibly useful product or
service, excellent content, or company news.
37. Social media ROI
Find your formula for measuring social media ROI. You can choose to include social
media marketing budget, staff payroll, development and design costs, etc. The benefits
can be new leads and customers, increased awareness, and social proof.
How to measure: As social media has many advantages that can’t be measured in
numbers, you should evaluate your social media ROI according to your goals and
advantages.
How to improve: Find the social media channels with the highest ROI and focus your
marketing efforts there.
Numerous KPI’s mentioned above are only the tip of the iceberg, one can set up a monitoring
system and start to track relevant business metrics.
Attribution in Digital Marketing
Media attribution involves analysis of media touch points (referral source) along the path to
purchase to determine which has influenced sale and which credit should be given to for
influencing conversion.

15. The purpose of attribution is to more accurately credit different channels for their influence in
generating leads or sales. Without attribution media such as social media and paid media like
display advertising may not be credited sufficiently since they generated an initial visit to the
website, but a sale is credited to another subsequent visit prompted by a different source, for
example, if someone searches for the brand in Google.
Google explains that any channel can play three roles in a conversion path:
First interaction is the initial referral. It may be the only referral.
Last Interaction is the referral that immediately precedes the conversion.
Assist Interaction is any referral that is on the conversion path, but is not the last interaction.
The Attribution modeling tool gives these options illustrated by this example:

16. How to Measure ROI in Digital Marketing
Useful Source link: https://imreko.com/digital-marketing-roi/
Measuring ROI (return on investment) is important to any marketing campaign’s success. You
can identify what’s working or not and what you may modify to boost your performance by
measuring the ROI.
What is digital marketing ROI? How to calculate DM ROI?
The ROI of your digital marketing is an assessment of the profits and losses of your marketing
campaign that you measure using the following equations:
𝑅𝑂𝐼 =
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑇𝑜𝑡𝑎𝑙 𝐷𝑀 𝐶𝑜𝑠𝑡
∗ 100
Analyzing ROI allows assessing the performance of DM campaigns.
This formula can be modified replacing Net Profit in to [Revenue – Costs].
For example, if you spent 5000 rupees on online marketing and generated 30,000 rupees
revenue, your ROI would be:
ROI =
30000−5000
5000
∗ 100 = 500 %
A ratio can be used instead of a percentage to describe your ROI. Your ROI in the above case
will be 5:1, meaning 5 rupees for each 1 rupee invested.
The above formulae are quite useful if your objective is to improve sales or income. But, if your
objective is to raise brand awareness, you would like to think about things like brand image and
recommendations. Because it’s tough to place a value on brand recognition, using the above
formula will not be relevant.
Why measure digital marketing ROI?
Analysing online marketing ROI shows what works and what doesn’t. If you don’t your ROI,
you’ll never understand if your campaigns are successful. It can lead to disappointing outcomes
and wasted marketing resources.
If you assess your online marketing ROI, you can improve your strategies accordingly. When
PPC advertising beats emails, you may choose to concentrate more on PPC or strengthen your
email efforts.
Calculating ROI also assists you to demonstrate the effectiveness of your digital marketing
activities, which enables you to get extra funds.
Digital Marketing ROI Metrics to Track:
To measure digital advertising ROI, you need two key metrics: the expense and the achievement.

17. When assessing ROI of your digital marketing activities, keep track of KPIs that directly connect
to sales, profit, as well as other business goals. These KPIs include leads, conversions, and client
retention.
Let us look at some relevant digital marketing ROI indicators.
1. Cost per Lead
When you’re gathering leads for a promotional campaign, you’ll need to figure out the
cost per head.
To calculate cost per lead, divide your entire marketing expenses by the number of leads
generated by your promotion.
Your ROI is determined by your cost per lead vs the value of each lead.
2. Cost per acquisition
The cost per acquisition is the amount of money it takes you to make a transaction.
Measuring your cost per acquisition will inform you how much money you need to
generate from each purchase to break even.
Divide your overall marketing expenses by the number of sales you made to get this
figure.
3. Average Order Value
Understanding your average order value will allow you to assess your ROI, just as you
read in the previous section on how to determine digital marketing ROI.
You should also keep records of the current average order value so you can set targets to
improve it. Even just a little increase in the average order value might result in a massive
gain in profit.
4. Click-through rate
You should also assess your PPC advertisements, organic search quiries, email
hyperlinks, and other promotions CTR (click-through rates).
Simply divide the number of clicks by the total number of impressions, and that is the
number of persons that viewed your advertisements or an organic search result to get
your CTR.
If your click-through rate is low, you will need to improve your strategy or ad copy, or
layout. Grater CTRs are linked to higher ROI.
5. Customer Lifetime Value

18. To calculate your ROI, you have to know your average CLV (customer lifetime value) ,
or how much a client is valuable to your business throughout their lifetime.
If you spent 100 rupees on advertising to somebody, and they bought 50 rupees, you
could consider that a poor ROI. However, if they spend 50 rupees over ten years, that’d
be a different scenario.
Consider CLV might also assist, you have marketing expenses, CLV lets you focus on
the whole lifespan of your client connections rather than simply individual transactions,
which saves companies money.
Calculating your average CLV helps you determine how much you can invest in each
client while still meeting your ROI targets.
5-Strategies: How to measure DM ROI
With conventional marketing, you spend to reach a large audience, whether it’s TV users,
magazine subscribers, or citizens of a specific postcode. It’s difficult to assess the performance
of these methods since you can’t trace who responds to advertising.
DM, on the other side, enables you to utilize tools such as Google Analytics to track, measure, as
well as optimize your ad campaign.
See how to assess the digital marketing ROI of these rising promotional strategies:
1. PPC advertising
Pay-per-click (PPC) is an advertisement technique that targets search engine users depending
on their search terms.
With Google Adwords, you can study keywords, pick the best ones, and set your budget per
click.
You could also link your Google Adwords account with Analytics to track what visitors do
after clicking on your PPC ads and also how they assist you to achieve your goals.
Suppose you want to sell 2,00,000 rupees goods and your CPC is 2.0 rupees. If 100 users
click your PPC ad and 10 buy, here’s how to determine your ROI.
100 individuals X Rs. 2.0 each = Rs. 200.00 spend
10 individuals X Rs. 200 each = Rs. 2000 return

19. You may use the common calculation of (Return-Investment) to determine your digital
marketing ROI.
So, in this situation, (2000-200)/200 = 9 indicating a 900% return on investment.
Of course, the quality of your PPC ads will have an impact on your marketing ROI.
However, because you can evaluate your PPC ROI fac=st and simply, you may allocate
funds to the ads that produce the best results while improving the ones which don’t.
2. SEO
With Google analytics, you can simply assess the actual ROI of your SEO efforts.
Custom goals in Google Analytics show conversions. You may also use Google Analytics to
determine the actual value of sales.
Consider the previous case. Let’s say your site makes 50 sales each month from organic
visitors, each valued at Rs. 200, yet you hire a SEO expert for Rs. 1000 a month for his
services.
1 month x Rs. 1000 = Rs. 1000 investment
50 sales x Rs. 200 = Rs. 10,000 return
In this situation, your digital marketing ROI is 900%.
Remember that B2B business may not have e-commerce sales to track. Even so,
understanding the estimated value of each one of your leads allows to simply measure ROI.
Google Analytics also allows you to track from submissions, quation requests, as well as free
trials. Then you can see how much earnings your SEO effort generates for your business.
Customer Segmentation & Targeting
Marketing often draws on the concepts of segmentation, targeting and positioning (STP) in order
to understand and direct marketing activities. And while this classic triple-threat combination is
useful in a wide array of marketing activities, it’s important to note that user segmentation and
market segmentation are applied in somewhat different ways in the digital customer journey than
the traditional journey.
Marketers are always trying to convey the appropriate message to the right group, but in digital
marketing, it’s more difficult to assess buyer behaviour and understand their journey and
therefore it’s harder to segment your audience and target your message.

20. What is the Buyer Persona?
You’ve probably heard the term “buyer persona” floating around in business and marketing
circles and may have wondered what it was. A buyer persona is a description of your ideal
customer. Creating a few different buyer personas can help you understand your audience better
in order to target lead and sales strategies and segment your audience.
When creating a buyer persona template, you’ll want to essentially visualize whom the people
are to most likely purchase your goods and services. Here are some questions to consider as you
build some personas of your ideal customer:
 What do they do?
 How old are they?
 What are their hobbies?
 What is their salary?
 Where do they live?
 What are their short and long-term goals?
The point of this exercise is to understand different ways that you can approach them with a
message that lets them know you can help them achieve what they want or need.
What is Audience Segmentation?
Audience segmentation is when you divide your audience into different groups based on various
criteria, such as demographics and media use. Digital marketers segment audiences as key part of
a targeted marketing strategy.
Audience segmentation is crucial in the digital sphere because consumers are more empowered
than ever. Not only that, they are making purchasing decisions at a faster rate than ever before.
So, the challenge for digital marketers is to understand how to catch them in the process of the
buying decision – to do this, they need to do everything they can to understand the way their
audience thinks and behaves.
If you’re wondering about where to start when it comes to audience segmentation, here are a few
key areas to think about.
Past Purchasing Behaviour
You want to segment your previous buyers out from new buyers, as you will be engaging
differently with different sets of people based on the relationships you have already built. To this
end, your segments can be differentiated based on buying patterns and even the types of products
they’re purchasing. The key will be to anticipate their future needs so that you can show them
what they need before they even really realize it.
Key Social Channels
Understanding how and where people are consuming your content can go a long way towards
how you market your goods and services to a different audience. It can tell you about the types
of things they prefer as well as how they interact with their friends. There are also plenty of ways
you can use your social channels to target, so the two go hand-in-hand in various ways when you
are working on a strategy.
Psychographic / Lifestyle Segmentation

21. Sometimes people segment their audience according to particular traits, cultural values, or
lifestyles. These can also be related to current events. This kind of segmentation can be difficult
to pinpoint because it’s not always in the form of concrete information like geographic
segmentation or age, which are clear and concrete sets of data. It may be more about values,
preferences or lifestyle factors. Psychographics requires that marketers dig a little deeper. To this
end, things like Facebook polls and quizzes can work wonders.
Targeting
Once you’ve segmented your audience into the appropriate groups, you’ll then look into the best
ways to focus on the different groups and catch their attention via marketing campaigns. You’re
going to be building this based on their demographic characteristics – and their demographics
and buyer persona are going to give you clues about the types of things they value.
Once you’ve delivered effective messaging, you’re going to want to understand how to address
and retain both the customers that have already engaged (for instance, through customer loyalty
programs) as well as how to address the customers that didn’t follow through to make a
purchase.
Retargeting
Understanding why people made the decision not to open an email or stay on your website can
provide valuable clues. To this end, remarketing or retargeting techniques can help. Remarketing
techniques usually use cookies to track your audiences and see what they’re doing once they’re
off your site. The cookie helps to keep your targeted ads running to people who have already
visited your site but have left.
Retargeting is best used as part of a broad-based strategy and is not appropriate for all sizes of
business. Use it with both inbound and outbound content marketing strategies to help with
conversions across multiple platforms. Note that you’ll need to understand what’s driving your
traffic first before implementing retargeting programs – this isn’t a way to bring traffic.
All of this boils down to not only solid customer engagement in a real-time way, but basically
data. Are your customer human beings that should be addressed this way? Absolutely. But they
are also full of information that can help you to form and refine your strategy in order to move
into better STP activities in the future.
TIP: Offer Unique Experiences
You can use social channels in various ways to offer customers unique experiences in order to
build brand awareness and better engagement with specific initiatives and products. Engaging in
real time can help you understand their buying habits and journey. So, when you’re offering
them an interesting experience at different phases, you are able to find a greater depth of
information and they can learn more about you too.
This can take the form of events, contests, discounts – whatever suits your brand story and offers
something of value to the customer. Something as simple as a hashtag can actually work
wonders when it comes to real-time interaction using social media. Red Bull’s #putacanonit is a
great example of a hashtag campaign that was inspired by someone’s photo.
TIP: Useful Tools

22. There are a number of tools out there on the web and many content marketing tools will have
segmentation and targeting features built in. Here are a few multipurpose as well as specific tools
you may want to test out if you don’t have anything that’s working well for you yet.
Marketo and Mail Chimp are email automation systems have built-in setups that help you to
segment audiences.
Google Tag Manager allows users to develop their own rules to integrate with specific tags and
web services. You might want to have a bit of a web developing knowledge to use this one and it
can be used in more complex ways than some of the generalized tools.
Activators allow you to import your non-digital audience information (for instance, information
you might collect at events) and the like you can use activators (like this one from Umbel) to
help you understand and segment data.
Facebook’s Custom Audiences tool is a simple way to target your Facebook ads via emails. You
just export emails into Facebook and create a customer list based on your preferred
characteristics.
Final Thoughts
The more personalized your digital marketing schemes are, the better you will be able to engage
with customers. These days there’s more and more technology coming out (think chatbots and
automated self-serve kiosks) that offer businesses the opportunity to engage at new levels of
personalization.
Automation and robots can work well towards making things more efficient, but the most
important way to build brand awareness and understand your customers is of course by engaging
in real-time as often as possible.