Digital marketing was a free-for-all where in an instant gurus touted their money-making formulas which usually little better than snake oil salesman and deluded followers into spending thousands for coaching a programs that didn’t work.
Without metrics for measuring the ROI of digital marketing, the gurus would still continued raking the money from gullible and desperate businesses. But, this isn’t a new dilemma and it’s actually unique to digital marketing.
In traditional advertising, they faces a similar problem that companies are allocating 60% of their media budget to television when only 18% of TV advertising campaign are generating a positive ROI. Now, digital marketing is much more sophisticated and it’s harder for false gurus to attract business owners without proving the ROI resulting from their digital marketing programs.
Study shows that digital marketing outperforms all forms of traditional advertising such as TV, print, radio, and outdoor, while the combination of both results in the highest ROI. So, digital marketing isn’t a strategy but it’s a business that should blend traditional advertising and new media. And, businesses whose media spend is till focuses on traditional advertising that should migrate their budgets in favor of digital marketing.
Combining traditional advertising which is the TV advertising can result an 11% increase in sales. In other words, advertising a single product through digital marketing can caused a uplift in sales of other products.
Unfortunately, many attempt to measures the ROI of digital media, which focus the end results. And, totally ignoring the variety of factors that generates the positive outcomes which is a very dangerous practice. Here are lists of tips on how to measure the ROI of Digital Marketing:
- Think beyond of the outcome measures
You need to understand the complex set of activities and interrelationships among activities that will results in positive ROI. In instance, focus on building a social media community backfires quickly if you have problems with customer satisfaction due to poor performance.
- Measuring what matters, not what’s easy
Set clear goals for the digital marketing campaign that go way deeper than just an outcome performance measures. Charts the performance that across all KPIs overtime in which is much more insightful than putting all the faith in point measures.
- Metrics aren’t enough
Statistics don’t speak for themselves and require interpretation by skilled analyst combining both the art and science of analytics to uncover actionable insights from the metrics. Adding the ability for users to create ad hoc reports and alternatives visualization increases the effectiveness of the dashboard.