ROI and how it influences digital marketing

Digital Marketing 01 March 2022

In all trades, it is essential to demonstrate that results are being obtained from an investment. That’s where ROI comes in.

In digital marketing, as there are many ways to measure success, this parameter is indispensable to demonstrate that things are being done well.

Do you want to know everything about it? We explain it to you.

About digital marketing

We have seen many times that digital marketing is that set of activities that are executed on the internet to attract new business and develop a brand identity, especially digital.

Usually, to develop all these tasks, a digital marketing agency or freelancers are hired.

With a wide variety of techniques, it can become difficult to prove that the investment is paying off.

It is at that moment where ROI can become our best friend.

What is ROI, and why should it be taken into account?

These acronyms come from “Return of Investment”.

ROI is a formula used to know the results obtained from an investment.

That means it’s not specific to digital marketing!

But in our work it is still an important tool to know the success of campaigns, and consider whether to replicate them or not.

To calculate the ROI, we need to know the income obtained through the campaign and the investment made in it.

Once you have this data, you can apply the following formula:

Formula for calculating ROI.
Formula for calculating ROI.

The final result must be multiplied by 100 because the ROI is usually expressed as a percentage.

Calculate income and investment

In general, it is always useful to have defined KPIs, that is, performance indicators. Many times they can serve us for ROI as well.

To calculate the income, it will be necessary to analyze what kind of value a campaign has generated for us:

To calculate the investment, we will have to review the budget and know if it has been met. Within this, there are 3 things to take into account:

Types of ROI in digital marketing

Now that you know how to calculate ROI, you’ll have no trouble demonstrating the effectiveness of your actions.

But this calculation can sometimes get complicated, as we have different things to prove

1. ROI on Social Media

In this case, it is intended to find out the profitability of the presence in social networks of the brand or company.

You will need to measure the cost of each of the profiles and the number of transactions that are generated from them.

Mobile with social networks
It is possible to measure the ROI in social networks.

This can be known thanks to tools such as Google Analytics, and including tools that allow you to know all the conversions that are made from social networks.

In addition, some social networks are beginning to include purchases on the platform itself, so it will become easier and easier to demonstrate profitability.

2. ROI in SEM

SEM is one of the simplest techniques to measure, since the tools that allow you to configure your campaigns also give you statistics of the benefits they bring.

In any case, tools that allow to know the conversions achieved through SEM campaigns should be included.

In this way, we would be able to know the income from those campaigns, and we would only need to check the final investment.


3. ROI in SEO

Measuring SEO techniques is one of the most important things we can learn to do, since it is one of the main branches within Digital Marketing.

At the same time, it is one of the most complicated to measure, since the results tend to be seen more in the long term.

In SEO, it is difficult to measure ROI by the nature of this technique.

To calculate the investment, all management costs derived from the management, creation, performance of audits, etc. will be taken into account.

Then, with tools like Google Analytics, we could try to know which of all the organic searches has achieved a transaction.

4. ROI in Email Marketing

Email marketing goes very unnoticed within digital marketing, but it is still the successor of the classic mailbox, and a powerful tool.

Given its highly commercial nature, it is not complicated to measure the ROI in email marketing campaigns. ✉

For example, the investment made is easy to know, and the income can be calculated knowing if those emails that have been sent have ended up in economic transactions.

Start demonstrating your results

We hope our short guide on ROI will help you demonstrate your results.

Now you know everything you need!

And if you have doubts, you can always consult us.

Contact us or follow us on our Instagram profile for more tips on digital marketing.

At Kiwop, we are specialists in content writing, digital marketing, web development and e-commerce.

Start measuring the return of your campaigns!


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