In the world of digital marketing, it’s easy to sweep up the creative side of campaigns - i.e., eye-catching visuals, existing copy. But what you are forgetting is tracking your return on investment (ROI). 

At Skillwise Solutions, every campaign, whether big or small, is always tracked. Whether you are aiming to drive sales, boost awareness, or generate leads, tracking ROI is key to knowing what’s working and what needs improvement. 

Here is a simple step-by-step process to measure your digital marketing ROI effectively—without any complicated spreadsheets, or jargon, just clarity.

Step 1: Define Clear Goals and KPIs

Before tracking for success, you need to understand what you want to achieve from your campaign

• Brand Awareness → Track reach, impressions, and engagement.
• Lead Generation → Focus on form submissions, sign-ups, or inquiries.
• Sales/Revenue → Measure conversions and revenue generated. 
• Website Traffic → Analyze sessions, bounce rate, and time spent.

Once your goal is clear, then assign relevant KPIs that will align with each objective.

Step 2: Know Your Costs

To calculate ROI, you need to know how much you’re spending. which includes everything:

• Ad (Google Ads, Facebook Ads, etc.)
• Tools and software subscriptions 
• Freelancer/agency fees 
• Content creation costs (graphics, videos, copywriting) 
• Internal team hours (if applicable) 

This gives you the total investment you have made in the campaign.

Step 3: Set Up Proper Tracking

The next step is to gather your data. Make sure you are using the right tools:

• Google Analytics – Track website traffic, user behavior, and conversions.
• UTM Parameters – Add these to your URLs to track which platform or campaign drove the traffic. 
• Ad Manager Tools – Platforms like Facebook, Google Ads, and LinkedIn provide deep performance insights. 
• CRM/Email Tools – Use platforms like HubSpot or Mailchimp to track email performance or lead quality.

Without proper tracking, even the best data can become guesswork.

Step 4: Calculate Your ROI

The basic ROI formula is simple:

📈 ROI = (Net Profit / Total Investment) x 100

For example, if you spent ₹50,000 on a Facebook ad campaign and earned ₹1,20,000 in revenue. Your profit is ₹70,000.

ROI = (70,000 / 50,000) x 100 = 140%

That means you earned ₹1.40 for every ₹1 spent. Not bad, right?

Step 5: Analyze What Worked (and What Didn’t)

Once the campaign ends, go beyond the numbers. Ask:

• Which channels performed best?
• What type of content had the most engagement? 
• Were there any high-performing ads or emails? 
• Did certain audiences convert better than others? 

Use this insight to double down on what works, and this will help the next campaign to work even better.

Step 6: Report and Refine

Create a simple performance report that includes:

• Goals and KPIs 
• Metrics and ROI 
• Key learnings 
• Recommendations for the next campaign

This will not only help internal teams but will also guide you to perform better in your next campaign strategy. Which will definitely perform better compared to the previous one.

Tracking your digital marketing ROI doesn’t have to be overwhelming. With the right goals, tools, and process in place, you can measure what matters and perform better in the next campaign.

At Skillwise Solutions, we are all about turning creative energy into measurable success. If you are ready to unlock the full potential of your campaigns, let’s track, learn, and grow—together.