Digital Marketing ROI Metrics

Digital marketing KPIs or Key Performance Indicators are quantifiable goals that help you track and measure your success. In a changing marketing environment like today’s era of digital disruption, planning for KPIs in the short and long term is becoming increasingly important for modern businesses.

KPIs are a digital way to help marketers set expectations and demonstrate that their work is making a positive impact. To an outsider, it may is it not. Measuring progress for digital campaigns is usually easier than offline ones.

An innovative marketing plan is essential for measuring and tracking progress and demonstrating value. This blog aims to set KPIs for digital marketing so businesses can measure what matters at the moment in a way that all parties can agree on. Learn about negotiating KPIs, budgeting, and incorporating KPIs into the Smart Insights RACE framework.

Importance of Tracking Digital Marketing ROI

You cannot manage what you cannot measure. This is especially true when it comes to digital marketing. This is why understanding your ROI metrics for digital marketing is so important. 

Knowing and understanding these metrics is very important, even running a digital marketing campaign. It helps you measure the success of your campaigns and optimize them for better results. Overall, tracking the right metrics can help you make better-informed decisions that can help you improve your campaigns and ultimately drive more sales.

Your digital marketing plan should track your return on investment (ROI). ROI is a measure of return on spending and indicates whether your marketing investment has paid off. If the ROI is positive, you’re on the right track.

If not, you need to rethink your marketing strategy. Digital marketers want to assess ROI over the long term, but they may also want to evaluate ROI on a campaign-by-campaign basis. To do this, you need to know which digital marketing metrics to use. In this post, we’ll explore some key ROI metrics for digital marketing and how to use them to measure your return on investment.

Metrics For Highest Digital ROI

The following are some of the top key KPI metrics that businesses should know in 2022:

Cost Per Lead (CPL)

Cost per lead is a metric that measures how much it costs to generate a new lead. To calculate your CPL, divide your total marketing spend by the number of new leads. For example, if you spent $500 on a campaign that generated 50 new leads, your CPL would be $500/$50, or $500 per lead.

If your CPL is too high, you are spending a lot of money to acquire new leads, and you need to find ways to improve your campaigns. On the other hand, a low CPL means your campaign is performing well and generating new leads at a relatively low cost.

Either way, CPL is the metric you need to track to make informed decisions about your digital marketing campaigns.

Average Sale Price

Average Selling Price is a relatively simple metric, but it can help you calculate your digital ROI. The average selling price is the average gross profit of a sale. Sum the total sales for a given period and divide by the number of sales.

Averaging allows you to account for price differences due to sales, discounts, and product variations.

Customer Lifetime Value

Customer Lifetime Value (CLV) measures how much a customer is worth to a company throughout their time as a customer. To calculate CLV, multiply the average revenue you make from your customers in a year by the average number of years a customer stays with your company. Helps calculate her ROI of long-term marketing.

Then subtract the cost of acquiring one customer from that number.

The formula is (average annual revenue from a single customer x average number of years as a customer) – customer acquisition cost = CLV.

Lead Close Rate 

Lead close rate is the percentage of leads that are closed. H. They buy. To find the lead win rate, divide the total number of leads by the number of closed leads. Then multiply it by 100 to get a percentage. 

You can use the lead win rate as part of your digital ROI calculation using the following formula:[(number of leads x lead close rate x average sale price) – the cost of marketing] / cost of marketing x 100 = ROI.

Conversion Rate

Conversion Rate is the percentage of visitors who convert, such as making a purchase or signing up for your email list. This metric is similar to the close rate. While the lead close rate can be measured over time, the conversion rate is typically used for specific campaigns.

For conversion rate metrics, conversions can come from something other than existing leads. To find your conversion rate, divide the number of clicks by the number of conversions.

Cost Per Click

Your cost-per-click (CPC) is the amount you pay when someone clicks on your cost-per-click ad. To calculate CPC, determine the total cost of clicks over some time. Then divide this by the number of clicks received.

Using Google Ads, you can see his CPC data in Google Analytics. You can also use the CPC Calculator to calculate your CPC quickly. Under Acquisition, Google Ads, and Campaigns, you’ll find other helpful information about your ad campaigns.

You need to focus on leads over CPC to get a positive ROI. But keep in mind that only some clicks are converted immediately.


Choosing suitable KPIs is an essential skill for digital marketers and takes some practice to master. It will only work sometimes, but anticipating what you can achieve over time and measuring your performance will help you grow as a marketer.