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Using Tracking And Measuring To Increase Online Marketing Return On Investment

Today, many people believe that marketers have one of two personalities - analytical or creative. This is true and actually rarely is a marketer ever both. With traditional advertising and marketing, launching a creative campaign can be just as successful as launching an analytical campaign. However, with today's digital online marketing the creative approach of advertising and marketing can sometimes have a negative influence on the profit and return on investment.

New online marketing techniques are the most measurable and accountable forms in history. Marketing online provides real-time tracking that can give online marketing companies the edge to react fast when sales begin to flatten.

The measurability and accountability of online marketing also offers a strong framework for calculating the amount of overall dollars spent marketing online. In addition, online marketing allows for measurements that help determine the amount spent on individual online marketing services, maximizing profit and return on investment.

Tracking Categories

The best way to calculate the monetary breakdown to increase the return on investment for online marketing services is to build a tracking system by separating services into four categories. These include e-mail marketing, banner advertising, pay-per-click (PPC) or search engine marketing (SEM), and search engine optimization (SEO).

The crucial measurements for these online marketing services should be standardized across each different service. These are usually measured in conversions, click-throughs, and impressions. Impressions track the amount of exposure to a targeted audience achieved by the campaign and how many people saw the advertisement.

Conversions are the final achievement of a successful campaign that includes a contact request, e-mail subscription, and ideally a sale. Click-throughs (also known as click-through rates and open rates in an e-mail campaign) measure the actions taken in response to the campaign. A click-through rate is measured as a percentage of impressions.

Cost Analysis

After measuring and analyzing the above factors, online marketing services should compare them against the cost. For each amount of conversions, click-throughs, or impressions, the cost is calculated by the total impressions divided by the percentage of conversions and click-throughs. For instance, a campaign that costs $5,000 for 1,000,000 impressions with 1.0% of people clicking-through and 0.5% converted, the cost per click is $.50 and the cost per conversion is $100.

Experts in online marketing in Orlando, Los Angeles, and in other major metropolitan areas realize the important relationship between effectiveness and cost. Typically, when the success of online marketing services increases, the cost then decreases. For instance, the success of an e-mail campaign measured by the number of click-throughs is usually higher than a banner marketing campaign. On the other hand, the cost as measured per conversion is much lower for e-mail marketing than for banner advertising.

The key is to understand the measurements and costs of each type of online marketing so you allocate dollars where they are most effective. Achieving a balance between the cost, the campaign, and the desired results will usually ensure every marketing campaign is profitable and provides the maximum return on investment.

About the Author

Dakota Bressler is an author for .Com Marketing. Founded in 1997 by Hillary Bressler, .Com Marketing is a top 100 interactive marketing and advertising agency that specializes in online marketing in Orlando and worldwide, professional web design, increasing click-through rates, and driving return on investment from online marketing services.

Author Profile: dotcommarketing

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