{"id":2756,"date":"2023-10-09T11:47:13","date_gmt":"2023-10-09T00:47:13","guid":{"rendered":"https:\/\/yellow.sensis.wpengine.com\/?post_type=hub&p=2756"},"modified":"2025-04-04T19:54:14","modified_gmt":"2025-04-04T08:54:14","slug":"how-to-measure-returns-on-your-digital-marketing-investment-roi","status":"publish","type":"hub","link":"https:\/\/www.yellow.com.au\/business-hub\/resources\/jargon-buster\/how-to-measure-returns-on-your-digital-marketing-investment-roi\/","title":{"rendered":"How to measure returns on your small business digital marketing investment (ROI)."},"content":{"rendered":"

Your website is the cornerstone of your digital marketing strategy \u2013 and with the right SEO strategy, an attractive destination that\u2019s easily found.<\/p>\n

Any investment in digital marketing is only as good as your marketing strategy so you will need to invest some time (and perhaps some money) in order to get the best possible return on investment (known as ROI).<\/p>\n

But what is ROI and why does it matter? We\u2019ll explore it in depth here, so you can measure your ROI and use it to drive your marketing strategy forward.<\/p>\n

What is ROI in digital marketing? And how do you measure it?
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When you boil it down, ROI refers to the amount of profit you make in relation to the amount of money you invest on any given marketing tactic (such as SEM, SEO or content marketing).<\/p>\n

There\u2019s a simple formula you can use as a ROI calculator.<\/p>\n

ROI calculator:<\/strong>
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ROI Formula = Amount Made on Investment \/ Amount Spent on Investment x 100<\/p>\n

This will leave you with a percentage that shows how much ROI you pulled in. For example, let\u2019s say you spend $5,000 on a content marketing campaign. That campaign brought you a net total of $15,000 in profit. The equation would be:<\/p>\n

$15,000 \/ $5,000 x 100 = 300%<\/p>\n

In this case, your ROI was 300%\u2014which would be considered a very good return on investment. But if you only made $7,000 in profit, your ROI would be 140%\u2014which is at the low end of a typical ROI in digital marketing.<\/p>\n

Hone your strategy by ensuring your marketing goals are SMART \u2013 specific, measurable, achievable, relevant, and time-bound.<\/p>\n

You can enter and track these goals in Google Analytics \u2013 the home of a lot of (free) insight into the performance of your website, including page views, duration of visits, return rate and bounce rate (how many visitors navigate away from your site after viewing only one page).<\/p>\n

Google Analytics<\/span><\/a> is also the place to work on your SEO \u2013 e.g. add target keywords and links to your website so you appear on the first page of Google.<\/p>\n

\"A<\/p>\n

Digital marketing return on investment (ROI) metrics.<\/strong><\/h2>\n

What metrics you look at to determine your ROI will vary depending on the strategy you\u2019re using. When you\u2019re employing SEO or SEM (paid SEO), expect to see your investment return as:<\/p>\n