What Online Marketing Strategy has the Biggest Impact On ROI?

Digital marketing technology is booming rapidly. Most businesses have now understood the importance of digital marketing value and are ready to invest in it. Return on investment (ROI) in digital marketing is an important aspect that should not be overlooked. There are a lot of digital marketing strategies, from SEO, email marketing, and SEM to PPC ads. In order to achieve consistent growth, the business must have a proper strategic plan in place to get the best ROI from all the marketing strategies.

Every marketing campaign needs proper planning and execution to get the right return on investment. The best digital marketing company analyzes the market scope and creates the right marketing campaign. After that, invest time and money in specific marketing channels to get the expected results.

What is ROI in Digital Marketing?

Digital marketing strategies are not just a flashy way to boost sales or brand recognition for a company. It is a process that must be measured, monitored, and revised regularly to get accurate results. Calculating ROI is one of the best ways to measure the effectiveness of digital marketing efforts. 

Here is a basic formula to measure the ROI

(ROI = Profit/Cost of investment x 100)
A higher ROI is better for growth while seeing a lower ROI should you improve techniques or change methods to get the best results.

Let’s know which Digital Marketing Channel Provides Better ROI for your Website. 

As per the digital marketing strategies, organic, paid search and email marketing give better ROI compared to others.

Best ROI Marketing Channels

To get the best results from marketing campaigns, we need to understand which one is better among others and that suits your business. Here, we have analyzed the three best marketing strategies that offer better ROI compared to others. 

Organic Method(SEO)

SEO is the most reliable and accurate way to improve the ranking of your business on SERPs. With the help of effective SEO techniques, you can reach your target consumers and convert them into sales. It is a long-term process and generates long-term revenue. SEO techniques work well and capture all the buying funnel from the top-to-bottom users. It helps to capture more target audiences and converts them to leads. 

How to Check ROI at SEO

First, measure the investment you put in SEO strategy, whether you have hired a digital marketing agency in India or invested in tools. Combine all of them and you get a figure that is the investment for your SEO strategy.

Now you have an exact idea, How much you have invested in SEO. After that, analyze the profits you get from it. To determine the conversion rate, you must enlist the help of tools like Google Analytics, Search Console, or other tools. Get the full report from tools and analyze data it generates leads and what factors affect it. 

Calculate Formula in SEO

(Gain from Investment–Cost of Investment) / (Cost of Investment) x 100

Let’s assume you have hired a digital marketing agency for SEO service and invested approximately ₹50,000 per month and generated 200 sales per month with each sale of ₹2000, a total of about ₹400000.

Here

ROI is

(Gain from Investment–Cost of Investment) / (Cost of Investment) x 100

                                             400000-50000/50000 x 100

                                                        350000/50000 x 100

                                                                             7 x 100

                                                                               700

It means your ROI is 700% or we can say each ₹1 investment gives you ₹7 profits.

Pros and Cons of SEO Strategy 

Pros

• It is a trusted and accurate strategy that gives the best ROI. You don’t have to invest regularly, like PPC advertising, to reach your target audience.  

Cons 

• It is a lengthy process and takes time to show effective results.

PPC (Pay Per Click) Advertisements

PPC marketing operates on a pay-per-click basis, so your company is only charged when a customer clicks on one of your ads. It is a more straightforward technique to generate sales and revenue for your business. It is the highest ROI Marketing strategy that targets the bottom-of-the-funnel users who are ready to purchase. The PPC technique is used to target a specific location, interest, or device to get effective ROI results. 

How to Measure ROI in PPC?

Anyone can easily measure the ROI in PPC with a specific method. Let’s look at an example.

Let’s assume you are selling a product costing ₹2000 with the PPC campaign on cost per click of ₹40 and 100 people click the ads. You got 5 sales from them. 

So the ROI is

(Gain from Investment–Cost of Investment) / Cost of Investment x 100

                                               10000 – 4000/4000 x 100

                                                            6000/4000 x 100

                                                                         1.5 x100

                                                                            150

It shows ROI is 150% means you are getting ₹1.5 profits on a PPC campaign.

The quality of the campaign defines the progress in sales. So always take professional help to do a PPC campaign for your business. 

Pros and Cons of PPC

Pros

• Get Instant traffic to your website
• Drive Target Audience and generate more sales

Cons

• Click and visit always do not get sales
• Can cost a lot with a minor mistake
• Requires experience for perfect PPC campaign

Email Marketing

Email marketing campaigns are the best way to generate sales and leads. We can use email marketing to build customer loyalty and retention. This is a good way to build a long-term relationship with them. Most e-commerce websites adopt these methods to engage regular consumers with their offers and products. Email marketing serves as one of the highest ROI marketing channels, as it has the potential to provide a personalized experience to users. Email marketing has great potential in digital marketing. We can build long-term relationships with existing consumers and new ones. With the help of a perfect email marketing campaign, we can generate significant leads and sales.

How to Measure ROI in Email Marketing

You can easily find out the ROI in email marketing in a few steps. Let’s assume you have invested around ₹100000 for building, designing, and sending engaging emails in a year and get the 500 leads to a cost of ₹2000, then you make a revenue of ₹20,00,000.

Here ROI is

(Gain from Investment–Cost of Investment) / Cost of Investment x 100

                                              1000000-100000/100000 x 100

                                                       900000/100000 x 100

                                                               9 x 100

                                                                  900

The ROI is 900% which means each ₹1 gives ₹9 profits. 

Pros and Cons of Email Marketing

Pros

• Best methods to create a long-term relationship with consumers
• Get better leads and sales compared to other marketing methods.
• Minimum investment requires
• Best for e-commerce or service-based websites

Cons

• Requires a strong email database
• Expertise to builds engaging emails
• Which one is best for your business

So above, we have discussed the best ways to get a great ROI in digital marketing. Every industry and business needs a specific marketing strategy to increase its branding and awareness and make a good impression among consumers. It depends on the type of business you have and what kind of results you want from digital marketing strategies. We cannot say that one specific marketing strategy works for everyone.

Conclusion

You can choose a specific marketing strategy as per your needs. If you want to boost the branding of your business, then social media marketing is also a good way to connect with people. Email marketing and PPC advertising are one of the best marketing strategies if you aim to get leads and sales fast, but if you want to build trust among users, SEO is the best way to help your business grow. Gives the best ROI. With the help of professional marketing experts, you can create the best marketing campaigns that deliver the results you expect