How to Test the Effectiveness of Digital Marketing?

With the passage of time, companies are shifting more focus on digital marketing rather than conventional and why not, the projection it offers garners more attention from the potential prospects. However, a lot of marketers are not sure if the digital marketing strategy they are pursuing is effective or not. Just like conventional marketing, digital marketing requires investment and when you invest, you create content, you should be able to know what you are getting in return and whether or not it is worth the time and money invested.

If you are not able to ascertain it; unfortunately, you are not equipped with the right tools to measure how effective your digital marketing is. However, you can learn about calculating sales, marketing metrics, and analyze the ROI in detail.

The Competitive Environment

In the last couple of years, small businesses have shifted focus to digital marketing. One business, on an average, is spending nearly $10,000 per year and collectively, this figure is in millions globally. This year, nearly 93% of the businesses have increased their marketing expenditure by 25% especially in content distribution, social media campaigns, and company websites. Whether or not this investment is paying off, is not yet known.

Out of all the businesses investing in digital marketing services, only 39 percent believe their marketing strategy is paying off. For some people, this figure of 39 percent may be huge but it is just a fraction in the digital landscape and it suggests drastic improvements in the tactics, strategies, evaluation of data, and targeting of audiences. So, how to measure the effectiveness of the digital marketing strategy?

Value vs. Vanity: Digital Marketing Metrics with Substance

Before jumping to analyze the returns of digital marketing, clear policies and parameters should be defined against which the success rate should be calculated. Vague KPIs that do not correlate to the returns on investment (ROI) simply contribute to the death of the business and the figure of 60% startups closing within the first 6 months of their inception strongly back this point.

The major focus of organizations should be on value rather than vanity because that’s the only parameter to measure the returns generated through digital marketing. Vanity and value each have different components and these are:

What is Vanity?

  • Keyword rankings
  • Web traffic
  • Time spent on site
  • Bounce rate
  • Number of social media followers
  • Pageviews

What Generates Value?

  • Conversion rates
  • Customer satisfaction rate
  • Customer acquisition costs
  • Returning customers
  • Downloads
  • Leads generated

One of the most effective and efficient tools to track the ROI is Google Analytics. It is widely used by businesses across the globe because of its wide scope. It helps in tracking the performance of the web pages and their associated campaigns.

Businesses that construct their ROI framework on valuable metrics are able to generate better results and know in which direction they want their digital marketing to lead them to. However, it is not that simple as it sounds. It requires skill, knowledge of analytics, and above all, time. For a small business or a startup, it is not possible to establish a complete digital marketing department because of the hefty costs. The ideal solution is to outsource this department to a professional digital marketing services provider having vast experience in the field with a proper team of extremely skilled individuals. TransData is one of the leading names in this industry with years of experience. We provide digital marketing services to businesses of all scales. For more information on pricing and other details, you can get in touch with us at