Digital marketing – Investment or Expense?

Digital marketing - Investment or Expense -
Digital marketing - Investment or Expense -

Your digital marketing is an investment or expense. How are you measuring the return on funds invested in online marketing? Do these features can be considered as an investment or an expense?


Your digital marketing is an investment or expenditure?

The digital marketing has as a main advantage over the conventional marketing, the ability to measure the return detail presented by each campaign. We can know exactly how much got real return in every action that we have developed on the Internet.

Hence comes the question:  Your digital marketing is an investment or expenditure?

I make this question because I have seen a lot of people out there thinking they are investing in digital marketing, but in fact is just spending money on online marketing.


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Let’s see the difference between one thing and another.

The results of measurement of capacity in the online world

As stated earlier, any digital marketing campaign, be it e-mail marketing, sponsored links on Google, Facebook or LinkedIn, optimization for search engines – SEO or other online actions can have your results analyzed in minute detail.

Tools like Google Analytics and own ad management boards of the various platforms, can provide us with the amount invested in the campaign and their return in terms of conversions into sales.

I can say, with the technical support of more than ten years experience as a digital marketing consultant, there is no campaign can not have their results explained mathematically. Technology for this exists, what can happen is someone does not know how to use, which is another story.

With this data, the entrepreneur can evaluate reasoned and correctly, whether it is worthwhile or not to invest in a certain type of action in digital marketing or even decide which one takes precedence over the other. A key issue for the resource management and allocation in any company.


You are investing or spending money on digital marketing?

Digital marketing - Investment or Expense - tinoshare.comFaced with all this technology, we can evaluate clearly and coolly to the outcome of any amount allocated for a digital marketing campaign.

The calculation is simple. Put money in the campaign? Generated sales? What was the result of sales, less cost of product or service over the amount invested in the campaign? I profit or loss? There, simple.

If the total value of sales less the cost of the product or service is greater than the amount invested in their digital marketing action, you will have made a great INVESTMENT. On the other hand, if the result in terms of sales, is higher than the amount you invested in your online campaign, it was not investment, it was simply SPENT.


Digital marketing is ROI

Digital marketing is ROI – Return of Investment. That’s all, return on investment made in online campaigns. If this return is not positive, you are not on the right track and with the right team.

Digital marketing is not serving. To advertise in any Google AdWords, paid ads from Google or in the Facebook Ads, the version of Facebook, it’s easy. The hard part is working with well-designed ads, planned and high conversion.

When you hire a digital agency or a marketer, your goal is to bring what we call conversion, ie the sale of a product or service, budget request, signing a newsletter and other options.This is the result that needs to be delivered, not only ad serving.


Always insist reports

During the digital marketing courses I teach at the Marketing Academy, it is common to receive participants early in the training, claim to be investing a lot of money on digital marketing and fail to see the return.

The first thing I ask is whether the company or professional who is in charge of structuring and vehicular campaigns provides performance reports, metrics and data conversions. Amazingly in most cases, the answer is no.

Hour, if you do not have performance reports, I just do not know where this money is going on Investment in digital marketing or Spent with digital media.

In such cases, my recommendation is simple, requires these reports or else cancel the contract. Unable to assess the effectiveness of the capital employed in stock online marketing does not make any sense you continue working with this company or professional.

When the end of the training these entrepreneurs discover what we have in terms of information on the campaigns, many people end up getting a call to schedule an urgent meeting about reporting.



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