For any business strengthening and profiling, its web presence is crucial in this technological era but for this purpose, the right digital marketing agency selection is not an easy task. There are many obvious and hidden aspects to be considered while planning and finalizing the digital marketing campaign with the help of available marketing company options. Promise fulfillments, cost factors, success stories, timelines, etc. are some of the major factors to be worked out here. Whether you are a proud owner of a small startup or a medium-sized enterprise or even a global player you require appropriate guidance for planning and executing your digital marketing campaign successfully.
We Dreamworth Solutions is ready to guide, mentor and educate our readers and customers about the selection of right digital marketing firms for expanding their business online. As usual Dreamworth Solutions show a research-based, positive approach to deliver this premium quality guide to its web users that will help them in planning their digital marketing campaigns.
For any entrepreneur following aspects are of utmost important to plan the digital marketing campaign through the right source i.e. the digital marketing partner capable of fulfilling your marketing requirements, in a cost-effective manner and maximum ROI accompanied by proven results.
This is all about the guiding factors while choosing the right digital marketing partner.
Computational Aspects For ROI
Now, we take pride to introduce you with more technical aspects like calculation of ROI for various digital marketing tasks.
Calculating ROI for an SEO Campaign
According to experts, ROI for an SEO campaign can be calculated with the help of the following formula.
Anticipated ROI = (Anticipated Revenue from SEO efforts – Proposed Cost of SEO Project)/Proposed cost of the SEO project
Let’s elaborate on this with an example. Suppose you run your business with a web-portal here your anticipated ROI can be computed based on various parameters like the average monthly visits to the business website, the average conversion rate of the portal, and average order value.
For example, consider your average monthly user visits are 50,000, the conversion rate for the business is 0.68%, and the average order value through the business portal is $176. In this situation, your marketing agency tells you that you might require spending $20,000 for SEO projects in order to boost SEO ranking of your business website.
At this stage, we recommend you to determine your “break-even” point. Forget about the classical and technical definition of breakeven point, in our scenario, it is the point at which the business will generate a positive ROI from a partner agency and can be finalised by the proposed cost of project / average order value. So in your case breakeven point is 114 sales.
After finalising your breakeven point you can work on additional traffic you need to break even by applying the following formula—
The number of orders needed to break even / e-commerce conversion rate.
So with given statistics, your website will require 16,765 visits for breakeven point. However, you will not assure the expected ROI by reaching the only breakeven point. As a prominent name in the Digital Marketing industry, we suggest you double the results to reach the maximum ROI. Hence, after doubling the breakeven point’s value for the number of visits i.e. 16,765 we get the ideal value of the number of users i.e. 32000 for attaining maximum ROI.
Computing ROI for Social Media
Social media is one of the significant and toughest domains of marketing. In many cases, most marketers don’t know how to compute real ROI of social media platform beyond basic metrics such as “likes”, “shares” and “favorites.”
We Dreamworth Solutions an excellent Digital Marketing Partner is ready to simplify your journey of right digital marketing firm selection by providing proven calculation methods that well-equip you with a scientific approach and precise computations.
While calculating ROI for social media you should first decide your end goals. What do you finally want to accomplish through a social media platform?
According to Buffer following goals you could track:
The further step is to actually monitor and track your selected goals. E.g. You can monitor website actions (i.e. sales, resources downloads, registrations) in Google Analytics or other sophisticated tools like KISSmetrics to receive better insights on who user visits and user actions.
Thereafter you need to finalise a specific monetary value to the actions fulfilled by the users. Lets elaborate in brief–
Case Study
The following chart presents the ROI of different media platforms.
One way to compute the ROI of business’s organic social media follower count, shares, likes, etc., is by estimating how much it would take for you to achieve the same figures via paid ads. For example, if you are an option to pay $0.25 per follower, and you carry 1,000 followers, then the calculation is simple with a return of $250.
Now, you can subtract the cost of time, the cost of the tools employed, and ad spend from this number to compute the real return on investment (ROI) that marks as the bottom line.
Buffer has defined some benchmarks on how much popular social media channels costs based on their performance and results:
Estimation of ROI for an AdWords Campaign
Estimating your ROI for your AdWords Campaign isn’t a simple task.
Google Analytics users would have noticed that there’s a default tab that presents the ROI of AdWords.
Here’s an example of a Google AdWords ROI report:
ROI here is calculated as revenue – cost/cost.
In the example illustrated by Brian, you’re getting a 500% ROI if your revenue is $600 from$100 ad expenditure. However, you also should notice that–
Aa per Brian’s analysis, there’s a huge difference between the default ROI shown in Google Analytics for every keyword compared to the actual ROI.
Now real ROI calculation should also cover your profit margin. The computing would be easy with the formula revenue x margin – cost/cost.
In Brian’s example, if your profit margin is 0.4 and your revenue and cost are $600 and $100 respectively, then your ROI would be 140%.
Or in simple words, you can afford to use 140% more on AdWords and still get positive ROI. However, if you just relied on Google Analytics report, you’d think it would be 500%.
Content Marketing—ROI Computation
It is important to have the right and precise metrics in place when calculating the effects of a good content marketing campaign. There are a few key factors that you should be sure to work out and measure from time to time.
Wrap Up
This is all about the computational side of the decision—who is my best digital marketing service partner. Dreamworth Solutions is a well-known digital marketing company in Mumbai and it also offers several other allied IT services like web design, development, app development, content writing, SEO, software maintenance and ORM to name a few. We attempted an innovative way to guide our readers about the computational side of different metrics needed for a successful digital marketing plan. I hope you like and enjoyed the content. Feel free to share your IT and digital marketing requirements at any time. We will be always there help you without any doubt, and prejudice. You can also see our success stories on our website. Once you choose Dreamworth Solution as your service partner, we assure you that the further journey will be long-lasting, productive and very delighting.
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