How to Track Your Digital Marketing ROI (Without a PhD)

You are spending money on marketing. Do you know which dollars are making money and which are being wasted? Most business owners do not. Here is how to set up tracking so you always know.

Know your numbers first

Before you can calculate ROI, you need to know your numbers. What is the average value of a new customer? What percentage of leads close into customers? If your average customer is worth $3,000 and you close 25% of leads, each lead is worth $750. Now you have a target cost per lead that makes the math work.

Set up the right tracking tools

Put the right tracking in place:

• Google Analytics 4: with conversion events for form submissions.
• Call tracking: with dynamic number insertion (so you know which channel generated each call).
• Google Ads conversion tracking: if running ads.
• Meta Pixel: if running Facebook or Instagram ads.
• A landing page: that fires conversion pixels when someone submits a form.

Calculate ROI by channel

Monthly ROI = (Revenue from channel minus Cost of channel) divided by Cost of channel, times 100.

Do this calculation for each marketing channel separately. Google Ads, SEO, social media, each one should justify its own budget. If a channel is not delivering positive ROI after 3 to 6 months of proper management, reallocate that budget to channels that are working.

Want help with this?

We do this every day. Book a free call and get a custom marketing strategy for your business. Based in Dallas. Serving businesses nationwide. One expert, zero fluff, all results.