How do you measure and report ROI on digital campaigns?

Question

Accepted Answer

Measuring ROI on digital campaigns involves tracking performance metrics and analyzing the financial returns against costs.

Define Clear Objectives: Establish specific goals for the campaign, such as increasing website traffic or generating leads.
Track Key Metrics: Use tools like Google Analytics to monitor metrics such as conversion rates, click-through rates, and customer acquisition costs.
Calculate Costs: Include all expenses related to the campaign, such as ad spend, content creation, and software tools.
Determine Revenue Generated: Analyze sales data to quantify the revenue generated from the campaign, attributing it to specific channels or campaigns.
Calculate ROI: Use the formula ROI = (Revenue - Cost) / Cost to determine the return on investment, expressing it as a percentage.

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