Measure what your ROI is or will be on your digital marketing campaigns. ‍Here's 3 key numbers affect your ROI and determine whether you'll turn a profit.
Nov 23, 2022
Marketing Blog

# 3 Key Numbers To Measure Your ROI on Digital Marketing

#### Does This Apply To Me?

Scenario 1: You're launching a digital marketing campaign, you want to send traffic from a digital ad to your landing page, and you want to predict what your ROI - if any - will be.
Scenario 2:

Here's 3 key numbers and only 3 that make the difference on your ROI (return on investment) when it comes to digital marketing.

Yes, it's a math problem, solve the numbers to generate profit.

#### The Numbers To Calculate Your ROI:

• Budget: how much you’re willing to spend on digital marketing campaigns.
• CPC (cost per click): this is how much it costs to bring a visitor to your website, as you’re paying for each click?
The CPC will vary depending on which platform you’re using, what industry you’re part of, the product you’re selling, its price, and other factors. - This metric is limited in how much you can manipulate.
• Conversion rate: from the users visiting your website, what percentage convert and complete an action / purchase?
Conversion rates usually range somewhere between 1% and 6%, depending on the industry.
• AOV / LTV (average order value / lifetime value): how much revenue on average does each customer bring to your business?
Again, this will vary depending on your industry and prices.

You’ve got those numbers prepared? Great!
Let’s roll.

#### How To Calculate Your ROI:

1. Divide your budget by your CPC to see the amount of visitors your marketing will generate.
Let’s pretend your budget is \$2500 and your CPC is \$2. Your site will get 1250 visitors.
1. Multiply your visitors by your conversion rate to see the amount of customers you will get.
In our example, 1250 visitors and a conversion rate of say, 5%, would get you 63 customers. (Actually, to be exact, 62.5 customers. But since we don’t know how to halve people, we’ll round it to 63.)
Note: your conversion rate will be a percentage. In order to multiply it, turn it into a decimal number. For example, 5% becomes .05, while 37% becomes .37.
Let’s pretend your AOV is \$150. If so, then 62.5 customers multiplied by \$150, will yield \$9375 in revenue.