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How can businesses effectively measure the ROI of their digital marketing efforts?

Jacopo Lai
8 replies

Replies

Tirupati Reddy Dontireddy
Using KPIs and measuring ROAS of that particular Digital channel
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Jacopo Lai
@tiru Thank you !!Using KPIs and measuring ROAS are important to assess the effectiveness of a particular digital channel in achieving your marketing goals. By setting clear and measurable KPIs, such as click-through rate (CTR) or conversion rate, you can track the performance of your digital channel and see how it is impacting your bottom line. Additionally, measuring ROAS allows you to determine the return on investment for your advertising spend on that particular channel, giving you insight into which channels are providing the greatest value for your business. Overall, using KPIs and measuring ROAS can help you make data-driven decisions to optimize your digital marketing strategy and maximize your ROI.
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Uday Patel
One critical way I think to measure use a proper accounting tool and make sure all the expense data is being tagged properly. this is to measure your Cost based ROI. But to measure efforts it depends on a number of factors: Hours you put it and What are your hours worth otherwise
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Jacopo Lai
@uday_patel4 I completely agree, using a proper accounting tool and ensuring all expense data is properly tagged is essential for measuring cost-based ROI. This allows you to accurately track your expenses and revenue for a particular channel or campaign, giving you a clear picture of the return on investment. Measuring efforts also plays a crucial role in determining ROI. The number of hours put into a campaign and the value of those hours can greatly impact the overall success of the campaign. By tracking the time and resources invested, you can better understand the return on those efforts and make informed decisions on how to optimize your strategy moving forward. Overall, a combination of measuring cost-based ROI and efforts is crucial for understanding the effectiveness of your marketing campaigns and making data-driven decisions to improve ROI.
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Fabian Maume
Launching soon!
Well, that is a realy complex topic. An attribution tool like Roivenue can help you to dive into the data. However, in the era of adblocker and cookie consent, it is hard to have reliable data to assess digital marketing. One way to work around the issue is to use Marketing Mix Modeling: https://towardsdatascience.com/i...
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Jacopo Lai
@fabian_maumeYou are correct, measuring the effectiveness of digital marketing campaigns can be a complex topic. Attribution tools like Roivenue can help you dive into the data and understand the impact of different channels on your bottom line. However, with the rise of ad blockers and increased regulations around cookie consent, it can be difficult to obtain reliable data. One potential solution is to use Marketing Mix Modeling (MMM). MMM is a statistical technique used to estimate the impact of different marketing inputs (e.g. TV, digital, print, etc.) on sales or other desired outcomes. It can help you understand the relative impact of different channels and make more informed decisions on where to allocate your marketing budget. As you've pointed out, MMM is a great way to work around the issue of unreliable data and gain deeper insights into the effectiveness of your digital marketing efforts. It's a powerful tool that can help you make better data-driven decisions to improve your ROI.
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