Importance of Tracking ROI on Marketing Channels

by Harshad Ghodke

Many business owners find digital marketing confusing and aren’t sure what’s working for them. When clients approach me for SEO or Google Ads services, I often ask them how their current efforts perform. Surprisingly, most business owners don’t have a clear idea of what might be holding back their success with Google Ads, SEO, or any other marketing channel.

Checking the Return on Investment (ROI) on each marketing channel is essential for businesses. ROI is a crucial metric that helps businesses evaluate the effectiveness and efficiency of their marketing efforts. It measures the revenue generated or cost savings achieved compared to the investment made in a particular marketing channel.


Here’s why checking ROI on each channel is important:

Performance Evaluation

By analyzing the ROI of each marketing channel, businesses can identify which channels are driving the most significant results and contributing the most to their bottom line. This data allows business owners to allocate resources more effectively and focus on strategies that deliver the best returns.

Resource Allocation

Knowing the ROI of different channels enables businesses to allocate their marketing budget wisely. By investing more in high-performing channels and reducing spending on low-performing ones, business owners can optimise their marketing efforts for maximum impact.

Cost Efficiency

Monitoring ROI helps businesses identify cost-effective marketing channels. Channels that deliver a higher ROI require less investment to generate revenue, making them more cost-efficient and attractive for sustained growth.

Data-Driven Decision Making

ROI data provides valuable insights into the effectiveness of various marketing campaigns and strategies. This data-driven approach allows businesses to make informed decisions and refine their marketing tactics based on real results.

Goal Alignment

Measuring ROI helps align marketing goals with overall business objectives. When businesses track ROI, they can ensure that their marketing efforts contribute to the company’s growth and profitability.

Adaptability and Flexibility

Consumer behaviours and market trends can change rapidly in a dynamic business environment. Monitoring ROI enables businesses to quickly identify shifts in channel performance and adapt their strategies accordingly.

Justifying Marketing Investments

Demonstrating positive ROI is crucial for justifying marketing investments to stakeholders, investors, or management. When businesses can show the tangible impact of their marketing efforts, it builds confidence and support for further marketing initiatives.


Checking the ROI on each marketing channel is vital for businesses seeking to make informed decisions, optimise their marketing efforts, and achieve sustainable growth.

It clearly explains which channels drive results and helps businesses allocate their resources effectively to achieve their business goals.

Google Analytics provides valuable data that can help to understand which marketing channel works best for your business. By analysing each channel’s traffic sources and conversion rates, you can identify which channels drive the most qualified leads and deliver the highest return on investment, allowing you to focus your resources and efforts on the most effective channels for optimal results.