Digital Marketing

7 Digital Marketing Kpi’s You Should Know How To Calculate

As all businesses flock towards the digital landscape because of the pandemic restrictions, the market competition is increasing profoundly. Many companies are smartly investing their efforts into digital marketing strategies to reach their audience and promote the products and services. For that instance, they also need metrics to measure the performance of each aspect of their campaign.

Fortunately, the prevalence of technology enables marketers to track and monitor real-time data for their marketing efforts efficiently. As the pandemic unfolds, measuring the digital marketing KPIs has never been crucial to ensure a successful digital marketing strategy. Also known as Key Performance Indicators, the measurable value shows the marketing strategies’ performance across the digital channels.

The advent of this pandemic brought all sectors to a standstill. Be it healthcare, education, or businesses, it took a toll on every industry. Especially, the halt of in-person trades disrupted the financial projections of companies. Most of them had to cut down the marketing budgets to survive the severe pandemic.

For that instance, they now rely on quantitative data to measure the effectiveness of the marketing strategies. Now, they can efficiently devise the marketing strategies that work best for their business instead of wasting resources on useless ones. Moreover, measuring the digital marketing KPIs is vital in achieving the business goals. With that said, let’s discuss the seven digital marketing KPIs that you should know and how to calculate them.


When discussing the digital marketing KPIs, the web traffic source is the top metric to consider. It aims at determining the traffic sources that bring visitors to your website. As an online business, you must monitor your traffic sources to drive unique digital marketing campaigns.

Marketers must monitor three main traffic sources, which include direct, referral, and organic. Direct traffic is the volume of visitors that came from directly visiting through the given link. The referral traffic is the visitors that are coming from the link on another website. Meanwhile, organic traffic is the search engine traffic generated from the search results.

But how can you measure and calculate your web traffic source? Marketers can employ analytic tools to measure traffic sources. These tools give insights for the top to low-performing sources. Moreover, you can also conduct a site audit to determine which part of your website is not bringing in any web traffic. This way, you can fix these areas and extend the performance of your digital marketing campaigns.


Along with the website traffic sources, marketers also have to measure the bounce rate of a website. It is the value that determines the percentage of visitors that leave without any interaction or activity. This metric is crucial to ensure the high performance of your website.

Avoiding the metric affects the credibility of the website, even leading to penalties from Google. It is essential to efficiently measure the bounce rate of the website and minimize it.

To achieve that, you can utilize the Google Analytics tools to monitor and then take necessary measures to reduce it. All marketers must focus on reducing the bounce rate since it indicates low-quality performance.

Your bounce rate may be because of the slow website, un-relevant content, or low user experience. For that instance, you will need to amp up the website’s performance to boost its engagement. Also, incorporate the incoming traffic sources to identify which visitors are bouncing off the most.


Click-through rate is another website metric that demands the special attention of marketers. If you are putting your efforts into search engine optimization, then the CTR is not an exception. The metric refers to the percentage of people that click on your website across all digital channels.

Whether you have incoming traffic from the direct, referral, or organic, CTR is measurable for all sources. This metric is calculated by finding the percentage of several clicks and the number of impressions. If you are running an ad campaign, click-through rate is the best metric to measure the campaign’s efficiency or revamp the strategy.


Every marketer running the digital marketing campaigns also considers pay-per-click advertisement to target the specific audience. The pay per click aims at driving ad traffic on the search engine to target the audience and land them onto your website.

Meanwhile, cost per click is the KPIs for the generated number of clicks on these advertisements on search engines. Marketers considering Google ads campaign for their business must measure the metric to determine each click’s total cost. It is measurable by dividing the ad cost by the number of clicks.


Cost per lead is the cost involved in generating a lead for your business. Measuring this metric is extremely important because it can help your strategies determine the sales funnel’s performance. Measuring the metric is involves an easy process.

All you need to do is add the marketing resources, including time and money and divide them by the total new leads. It determines the lead generation effectiveness and helps make the most out of the marketing budget.


Similar to cost per lead, this marketing KPI refers to the cost involved in acquiring customers from the leads. This metric is only applicable to those leads that converted to paying customers.

The formula for measuring the cost per conversion is dividing the total cost to generate the traffic by the total number of conversions. This KPI can help measure the marketing efforts online and the content strategy to engage the leads.


Return on investment is the queen of the digital marketing KPI that determines your business’s total marketing effort. As the name implies, the metric focuses on indicating the efficiency of the investment in your business.

To measure ROI, marketers need to subtract the gain from investment from the cost of investment and dividing the value again by the cost of investment, and finally multiplying by 100. It gives you a total percentage of the gain from the investment in your digital marketing campaign.


Digital marketing KPIs are critical factors to keep your business kicking in the competitive market. Today companies do not invest heavily in marketing strategies and expect big from digital marketing.

However, by measuring these KPIs, they can efficiently push their business to the tides of competition and achieve long-term business goals.

Atif Mallo

Atif Mallo is a freelance blogger with huge interest in technology, science, life hacks and health. He loves coffee, cheesecake and chess. Drop a line in comments to leave feedback for him.

Related Articles

Leave a Reply

Back to top button