Using digital platforms like email, social media, search engine optimization (SEO), pay-per-click (PPC) advertising, etc., you can promote your business to a larger audience while generating a higher return on your ad dollars in the process. However, you’ll want to monitor the following key performance indicators (KPIs) to determine the effectiveness of your digital marketing campaigns.

Click-Through Rate

Click-through rate (CTR), as the name suggests, is a KPI that reveals the percentage of users exposed to your ad who actually click it. If 1,000 users see your ad and 100 of those users click it, your ad has a 10% CTR, which is pretty good. Of course, you should actively optimize your ads to achieve the highest CTR possible.

Conversion Rate

Another important digital marketing KPI to watch is conversion rate. Conversion rate is the percentage of users who actually buy your advertised product or service after seeing and clicking your ad. If 20 out of 100 users buy your advertised product or service, your ad’s conversion rate is 20%.


Of course, you should also monitor the total traffic your ads receive. Regardless of where exactly you are advertising — Google, Facebook, similar sites, etc. — you should set up some type of analytics software to monitor traffic. How much traffic do your ads generate? Where is this traffic coming from? These are all things you should monitor to determine whether or not your digital marketing campaigns are working.

Return on Investment

For paid digital marketing campaigns, you should track your return on investment (ROI). Basically, this is the percentage of money you generate from an advertising campaign over the amount you paid for it. If you spend $200 on a Google AdWords campaign that generated $400 in revenue, your ROI for that campaign is 200%.

New vs Returning Customers

You should also monitor the ratio of new vs existing customers that you acquire through digital marketing. Statistics show that’s up to 10 times cheaper to sell a product or service to an existing customer than it is to sell to a new customer. Therefore, you should focus on retaining your business’s existing companies.

Google AdWords and Facebook Ads both offer retargeting, which is invaluable in boosting customer retention rates. Using retargeting, you can focus your ads specifically on users who’ve already visited or otherwise engaged with your business’s website. Retargeting consistently ranks as one of the top customer retention strategies, so be sure to include it in your digital marketing efforts.