Return on investment is the most important factor when deciding on a marketing tactic for most internet companies. There are so many different forms of internet marketing and places to spend your advertising dollar. It can be a daunting task to choose what type of advertising (online or otherwise) to invest in and how much to put into your campaign. No matter what type of advertising you choose, it all comes back to one thing: Return on investment. After all, what is the purpose of advertising in the first place if you are losing money on it in the long term?
Calculating return on investment for your search engine marketing campaign is not an impossible task, and in fact it is easier to track than other forms of advertising such as various forms of media (television, radio, and print). Unless you are forcing customers to visit by typing in a specific landing page URL and setting up a toll free number, it is very difficult to specifically track the actual effectiveness of those other forms of advertising as they relate to websites. This is not to say that these other forms of advertising are ineffective or don’t have their place, but most forms of internet marketing simply provide a clearer picture of where your money is going and what it is doing for you.
One of the biggest advantages of internet marketing is its measurability – whether you are seeing how far you have moved up on the search engines or calculating your conversion rate on your products. With the use of this information and knowledge of the lifetime value of each customer, a very precise calculation of return on investment can be completed.