Digital Business: Analysis of ROI in Digital Marketing

This report delves into the critical aspect of Return on Investment (ROI) within the realm of digital business. It highlights the importance of measuring ROI and explores various methodologies for its calculation. The report discusses the use of website analytics, such as Google Analytics, to measure traffic and the cost associated with it. It also covers traditional methods of calculating ROI, such as analyzing revenue generated from investments. Furthermore, the report emphasizes the significance of converting website visitors into customers and introduces the concept of customer acquisition cost. It also suggests focusing on specific products or brands to assess customer attraction and optimize digital marketing campaigns. The report concludes by providing a comprehensive overview of the methods and metrics essential for understanding and improving ROI in digital business.

Measuring ROI in Digital Business
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DIGITAL BUSINESS 1
Measuring ROI in Digital Business
ROI is an important aspect in defining the success of the business enterprise either operating
offline or digitally. The measuring of ROI in digital business is challenging, still, the
organizations involved in the digital business must focus on measuring ROI in digital
business. There are multiple approaches through which the ROI can be measured such as
calculating the unique visitors over the website using the data analysis tools such as google
analytics, measuring and analyzing the cost involved in generating the traffic on the website
or through calculating the cost per lead. The return on the investment within the digital
business can also be calculated through the traditional method which means calculating the
revenue generated from the investment within the business or by dividing the net profit with
the total cost incurred.
The digital business does not only depend upon attracting and generating visitors, but it also
requires that those visitors are being converted into the customer or the sale has been done.
Therefore, through analyzing the amount of the customers converted from the generated leads
can also help in defining the ROI of the digital business, the process is also known as the
customer acquisition cost. The digital marketer can focus upon the specific products or the
brand offered to the customers through digital business, and analyzing the customer attraction
towards each product or brand so that the marketer can identify the potential brands and
accordingly develop its digital marketing campaign (Augurian, 2017).

DIGITAL BUSINESS 2
References
Augurian, 2017. 10 Metrics To Measure Your Digital Marketing ROI. [Online]
Available at: https://augurian.com/blog/10-digital-marketing-roi-metrics/
[Accessed 03 April 2020].