Understanding the ROI of Digital Marketing – Our Guide

With the COVID-19 pandemic forcing Australian businesses to be more conservative with their expenses, the average company head is now required to identify what operations yield value (and which ones don’t). This is where the concept of a Return On Investment (ROI) comes into play.

Today, nearly every part of a business can be viewed from a numerical perspective and broken down into a set of figures that will determine whether or not it’s profitable and worth keeping. However, there are some parts of returns that aren’t as explicitly stated or easily-quantifiable, and it becomes a little harder to deal with—such is the case when it comes to digital marketing.

The historical cost of digital marketing

Ever since the Internet came into existence, digital marketing has remained at the top of the minds of businesses for various reasons—even more so considering that it’s the most dominant form of advertising today. Unfortunately, the ambiguity of digital marketing’s historical cost has left many businesses privy to the efforts of “instant gurus” with promises of “significant returns” and a lack of actual effectiveness and accountability.

With today’s online marketing scene becoming a battle of numbers and “who can get more” among businesses and advertisers, it’s easy to see why many are wondering about what they can get out of their expenses. Historically speaking, it has been difficult to pinpoint just how much one can get out of investing in a good digital marketing strategy because there isn’t a set formula that can be used

How can you start calculating the ROI on your digital marketing efforts?

The debate on calculating ROI on a digital marketing strategy has recently had a constant back-and-forth between businesses and experts alike because of the formulas and templates that have yet to be set. Here are several tips that will help you with quantifying the overall potential performance and expected returns from your efforts in the long run:

1. Stick to your KPIs

When it comes to ensuring that you have a strong chance at measuring the returns of your digital marketing efforts, you must first establish a strong benchmark for consideration—this is where Key Performance Indicators come into the picture.

Although there are many different aspects of digital marketing that aren’t as quantifiable as you’d expect, KPIs will help ensure that you get to establish concrete results with your efforts. By using the right indicators that are intrinsic to your set of goals, you’ll be able to determine just how much you’re getting out of your investment in a “threshold”-like manner!

2. Start using metrics and tools

One thing that you must understand about actualising an ROI for digital marketing work is that it’s easier today because there are many tools and metrics that help quantify results.

In today’s digital world, it is possible to measure a strategy’s success and its long-term potential through various figures, such as conversions, impressions, views, and costs-per-click (CPCs). Yet, what many people don’t understand about these metrics and tools is that they can also depict the overall ROI with a simple comparison to incurred costs!


Although the process of determining an ROI from your digital marketing strategy can be rather challenging because of how sparse quantifiable metrics are, having the right approach can go a long way. Through this guide’s help and the key tips mentioned above, you can better understand your online marketing efforts’ financial feasibility and what you can expect in terms of returns on your capital!

Are you looking for a digital marketing agency in the Gold Coast to help you refine your approach to all the right results with a sound strategy? We’ve got you covered with our services ranging from content production to website development. Get in touch with us today and see how we can help!


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About Author

Picture of Fabio
Fabio is the CEO and Head of Growth at Shuttle Digital. He has an uncanny ability to envision, craft, and share a story. His creativity, coupled with a wealth of marketing experience, has led to a fine-tuned strategic acumen that guides his clients to success.