As a businessman, it is easy to understand ROI or Return on Investment. However, for a layman, it’s a profit or the money saved from an investment. ROI is actually the indicator of the relevance and worthiness of your investment, in the end.

For marketers, ROI is a huge concern. Advertising or marketing is a kind of investment, but quite often its highly expensive, hence making ROI a real issue for both advertisers and businessmen. Every businessman is keen to know whether his money has been spent on something that is expected to return some profit or he is tossing his money in an endless pit.

In a business, when you are investing some money on a professional’s services to advertise your products and services, you obviously want him to discuss the ROI beforehand. You wish to know how much profit you may earn post marketing campaign. But for good ROI, the marketing pitch, presented by the professional, should be up to the mark and as per the current trends.

I’m sure that you’re fully aware of types of marketing prevailing today. Yes, its digital marketing (trending today!) and traditional marketing (a thing of past!). There are two more terms I would like to mention here, related to marketing. These are ‘Push marketing’ and ‘Pull Marketing’. However, these could be discussed later on, let’s now see traditional vs online or digital marketing.

Traditional marketing is a kind of outbound or ‘push’ marketing that involves ‘pushing’ the information about your company’s products and services to the individuals, who may or may not be interested in this info. Traditional marketing is a one-way advertising through mediums like television and magazines, where audience are unable to interact with you. On the other hand, digital marketing is inbound or ‘pull’ marketing where we attract that audience towards our business or website through impressive content, SEO techniques and optimized advertisements.

Now when tracking the ROI comes, traditional marketing lacks the effective tools and strategies to calculate ROI. Moreover, it is not viable to calculate an exact ROI when you even don’t know who actually sees your ads, fliers or billboard advertisements. The best thing traditional marketers could do is to keep a track of their expenditure or investment on the promotional campaign and how much profit they earned in a stipulated time period. But is it precise? Obviously not. Whereas digital marketing has the online tools like SEO or Search Engine Optimization to measure the ROI.

SEO, is used to enhance the website visibility in search engines, which in turn give high SERPs (Search Engine Results Page) rankings. The high SERPs boost the credibility of your business and there are higher chances of conversion of a user to a customer. Here the SEO, SERP and conversion rates can allow you to calculate the ROI along with the revenue you earned. You can even anticipate an ROI, prior to the campaign, keeping in mind the factors mentioned above and then compare it with actual ROI. The comparison can give you the better picture of your marketing campaign and you can even optimize your advertisements for better implementation of SEO strategy.
Social media is also one of another way for online marketing and good thing is that as a marketer you can easily measure how many people have liked your post and hoe many are expected to return as customers.

Now, in the end, which one is better, traditional or online marketing? Well, it’s difficult to say, as it’s a never-ending debate. It’s a cliché, but the choice is yours as per your business and advertising requirements.