Many companies shy away from investing in internet marketing because they don’t feel they can measure the return on their investment.

This is not the case. The success of an internet marketing campaign is easily measured. Firstly, you must establish clear goals in terms of what you want to achieve. These might include:

• Lead Generation
• Genrating enquiries
• Sales
• Registration or subscription
• Brand or product/service awareness

Admittedly if you have a clear conversion mechanism like an enquiry form for example then it is very straight forward to measure perfomance but in a case where there is no conversion mechanism which might be the case if you are just trying to build awareness of something. Then, there should still be a specific page on your web site that indicates you’ve achieved that goal and when a visitor views that page and has spent some time absorbing the information then your site has generated value.

You must have be clear which page is going to ascertain whether or not you have achieved your goal.

It’s not easy but you need apply a value to achieving that goal, in short what it is worth to your business.

If you have an ecommerce site then you can calculate your profit per sale. If you are genrating sales leads for a sales team then you can work out what your conversion rate is. For example if you’re converting 2% of leads and on average each sale is worth £5,000 then multiply that by 0.02 and the value of a lead is £100

If your internet marketing goal is to get people to see a specific page then you can estimate the value in a similar way by working out some averages for example but it’s far easier to measure if you procedures in place to qualify where new business is coming from. Regardless of your goals, make sure you understand their relative value.

It’s also important to calculate how often you achieve that goal. You can measure the number of times a specific page or file is viewed using any basic web site traffic analysis software. You can track where your site visitors come from. Again, any basic web site traffic analysis software can provide this. Track conversions where applicable. You can track which page visitors enter your site, where they exit and what they did whilst there.

How much did or does it cost you to achieve your goal and is that a justifable return on your investment?  If it doesn’t then it’s back to the drawing board.

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