Using Digital Marketing ROI to Make Your Case to Clients

As a digital marketing agency, you might sometimes struggle to demonstrate the ROI from website investments to get full buy-in from clients for your services. If so, you’re not alone. In a recent survey of 2,000 small businesses by Deloitte, 80% were found to underinvest in digital marketing. The main cause – a lack of awareness among clients of what they stand to gain from digital marketing initiatives. This is also a frequent problem among the 600+ agencies who purchase our WordPress outsourcing services at White Label Agency.

To ensure your agency’s marketing services receive the proper attention they deserve, make sure you’re prepared to make a compelling case to clients for digital marketing investment, highlighting the significant digital marketing ROI they can expect.

Digital Marketing: Important but Overlooked

Digital marketing plays a key role in attracting new customers, with 99% of local purchase decisions informed by web searches. However the internet is a crowded space, and only about 3% of published web pages receive commercially significant traffic. Most small businesses now have an online presence, but many fail to sufficiently market themselves to truly stand out.

While three-quarters of US small businesses have a website, over a quarter spend less than $500 on their digital marketing efforts. This is hardly enough to maintain a basic website.

Growing Digital Marketing in 2024

The good news is that barriers to digital marketing investment will likely fall in 2024, making clients more susceptible to your approaches. Anticipated trends for 2024 include lower interest rates, increased customer spending, lower inflation, and greater business certainty. These factors will probably see small businesses allocate more resources to digital marketing, with spending projected to rise by an average of 10%. In addition, 94% of small businesses have expressed readiness to boost their digital marketing spending.

This shift presents a prime opportunity for agencies to highlight the significant ROI from Website enhancements and online strategies. Showing how better websites lead to more revenue and customer interaction is crucial. As clients see real ROI improvements, they’ll likely embrace digital marketing ROI more eagerly.

How Much Should Your Clients Invest in Digital Marketing?

While many recommend allocating a percentage of revenue to marketing, a more sensible approach is to focus on the return on investment (ROI). Understanding your clients, and the returns that digital marketing investment can bring to each of them, is a crucial task for your agency.

Understanding ROI in Digital Marketing

Return on Investment (ROI) is a critical metric in evaluating any investment, including digital marketing initiatives. It measures the gain or loss generated relative to the amount of money invested. This concept is vital for businesses to understand as it directly correlates to the efficiency and profitability of their investments.

Digital marketing encompasses a wide range of services, from those directly associated with websites – design, development, web copy and maintenance – to marketing services such as SEO, digital advertising, social media management and online reputation management. ROI from Website analysis is crucial in evaluating these services. This involves assessing the costs associated with each service and the revenue they generate, thereby determining their effectiveness and value.

Calculating ROI for Digital Marketing

Having a clear idea of the expected digital marketing ROI initiative can play a key role in getting clients onboard, and in enticing them to invest a full and proper amount in your agency’s services.

To calculate ROI for a marketing initiative, subtract its costs from the profit it’s expected to generate, then divide this by the cost. This expresses the gain of the initiative as a percent of the investment required. It can be used to compare investments of all types, from stock market ventures and real estate transactions to technological upgrades and human resources initiatives.

Having a clear idea of the expected ROI of a digital marketing initiative can play a key role in getting clients onboard, and in enticing them to invest a full and proper amount in your agency’s services. Understanding and effectively communicating the ROI from Website investments is crucial in this process. By clearly articulating how website improvements and digital marketing efforts lead to substantial returns, agencies can more effectively demonstrate their value. Calculating the ROI involves a straightforward formula: subtract the initiative’s cost from the profit it’s expected to generate, and then divide this by the cost. This calculation showcases the financial gains in terms of percentages and makes a compelling case for why investing in digital marketing, especially in website enhancements, is a wise and profitable decision for clients.

Maximize client ROI with White Label Agency

Delivering maximum value to clients, and thoroughly understanding digital marketing ROI services, are essential tasks for your agency. For detailed information on calculating the ROI of your digital marketing projects, see our white paper “Return on Investment from Digital Marketing: Making the Case to Clients”, and use our “Return On Investment Calculator”.

At White Label Agency, we’re here to help you. Serving 600+ digital agencies, and with over 10 years of experience, our WordPress outsourcing services – development, design, maintenance and content – are carefully composed to help you maximize ROI for clients. Contact our sales team today to learn about how your agency can benefit from our WordPress outsourcing services.