Analysing productivity of digital marketing investments through selected metrics

Nowadays, the business firms are shifting their investments from traditional marketing to digital marketing. Even though the companies are spending more on digital marketing, yet most of the marketers find it difficult to measure productivity of digital marketing investments. One of the measures of productivity is return on investment (ROI), and digital marketing return on investment (ROI) is the measure of profit or loss that the marketers generate on their digital marketing investments. Digital marketing productivity is measured through different metrics such as cost per click, cost per impression, bounce rate, share of voice, conversion rate, etc. This paper highlights these metrics with the help of few case studies from past literature. These metrics provide useful information regarding success of digital marketing investments in generating sales growth, profit, brand awareness and knowledge, customer relationship management and promoting word-of-mouth. Effective productivity measurement of digital marketing investments would lead to trust among business firms and promote higher use of such digital marketing tools by the business organisations. The authors have also presented a conceptual framework of measuring digital marketing productivity.