In this article, we will focus on answering the following question
- How to measure marketing ROI?
- What is a good revenue to sales ratio in the context of digital marketing?
- What is a good KPI to calculate digital marketing ROI?
- How to Calculate influencer marketing ROI?
- How data-driven machine learning models and AI algorithms can be used to measure a good marketing ROI?
- Does Brand need marketing spend before starting a social media marketing campaign?
- How can brands measure their ROI for influencer and influencer marketing campaigns?
“What is a good marketing ROI?” What is a good influencer marketing ROI? How to calculate influencer marketing ROI? How to optimize marketing ROI by investing in search engine organic traffic growth? Next, what AI tools and techniques in SEO can maximize the marketing ROI?
The most important question is, are your marketing efforts are targeted at leads generation? Are these leads converted into sales? Are these sales profitable? Are you able to attribute marketing costs to revenue?
A good marketing ROI is itself a KPI. It indicates if you are profitably running your business. However, it is hard to measure, and before we can apply analytics and algorithms, it will be useful to take some ballpark estimates.
Many times, the most common question is what benchmark marketing ROI ratio is? Based on consensus in the industry, a 5:1 revenue to marketing cost ratio is considered as the middle average in the normally distributed bell-shaped curve.
What is a good KPI to calculate a marketing ROI?
A KPI is a measurable quantity. Using a KPI, you can monitor ROI. You can use KPIs to measure marketing campaign success, conversion rates, and measure your site’s SEO quality using AI tools and techniques. Following are some example of such KPIs.Influencer coupon and promotion vouchers
You can increase engagement rate, and generate a good ROI by tracking all the influencer coupon and promotion codes which they share with their followers. This will also boost your website traffic.Tracking Clicks
Using a tracking pixel, e.g. facebook pixel, you see how many people and from where they are coming to your site and using pixel and cookies you can track how many visitors are coming by monitoring one of your influencers. You can also combine insights from Google Analytics.
How to calculate influencer marketing ROI?
How you calculate digital marketing ROI? Let's take an example. You pay the influencer $62 for the picture.
You give the influencer a coupon code, Creatorsxxyy77zz, to share with her followers in the photo. The code provides people 10 percent off their purchases. Within one single day, 1000 coupon codes are burned or redeemed, which generated sales of 10,000 dollars.
So far, you’ve only spent the 620 dollars on your digital marketing campaign, so you subtract that from the 10,000 to get 9380 dollars. You then divide 9380 by 620 to get digital marketing ROI of 15.12%
Here’s another example. You pay an influencer for a sponsored photo and include a tracking pixel on the post. After 24 hours, 100 people have clicked from the influencer’s post to your site. Of those 100 people, two ended up buying something from your brand, bringing in 300 dollars in revenue.
You are subtracting the cost of the photo (62 dollars) from the 300 dollar results in an influencer social media marketing ROI of under 400 percent.
How data-driven machine learning models and AI algorithms can be used to measure a good marketing ROI?
Moving from more straightforward economics to comprehensive trends and traits, social media marketing AI tool will collect data such as likes, shares, video views, followers, comments, click through, total rewards shared to followers, unique niche talent and skills, national and international awards, entire crowd fundraised etc., as well as an influencer’s demographics, psychometric, social media posts reach. The influencer score will take all of the above information to determine the worth of an influencer based on engagement, relevancy, and interest.
Does Brand need marketing spend before starting a social media marketing campaign?
Successful social media marketing programs through the influencer’s require brands to allocate a budget or marketing spend which depends on
How can brands measure their ROI for influencer and influencer marketing campaigns?
Brands must think critically about all the costs associated with a digital marketing campaign before setting up the marketing spend. You must predict and analyze the hidden costs associated with a digital marketing campaign in addition to other advertising agency fees. Brand awareness is a costly affair.
Quantamix Solutions offers consulting and software solutions for digital marketing including AI tools and techniques in SEO for Digital Marketing and Python-based Web Development as an alternative to WordPress in 2019 to help you determine how you can optimize your content, SEO and website strategy to maximize and optimize on your digital marketing ROI.