1. Metrics for measuring
Return on Investment from
Internet Marketing
Submitted to Dr. Vivek Vijay
Submitted by
Manish Kumar Jain
JatinRustagi
Kshitij Kumar

2. Literature Survey
Online Marketing /Internet Marketing /Web Marketing
It refers to promotion or services over Internet. Internet marketing ties together the creative and
technical aspects of the Internet, including design, development, advertising and sales.
It includes promotion and marketing along many different stages of the customer engagement cycle
through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific
websites, email marketing, content marketing, mobile advertising, and Web 2.0 strategies.
Types of Internet Marketing
Display advertising: the use of web banners or banner ads placed on a third-party website or blog to
drive traffic to a company's own website and increase product awareness.
Search engine marketing (SEM): a form of marketing that seeks to promote websites by increasing
their visibility in search engine result pages (SERPs) through the use of either paid placement,
contextual advertising, and paid inclusion, or through the use of free search engine
optimization techniques.
Search engine optimization (SEO): the process of improving the visibility of a website or a web page
in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results.
Social media marketing: the process of gaining traffic or attention through social media websites
such as Facebook, Twitter and LinkedIn.
Email marketing: involves directly marketing a commercial message to a group of people using
electronic mail.
Referral marketing: a method of promoting products or services to new customers through
referrals, usually word of mouth.
Affiliate marketing: a marketing practice in which a business rewards one or more affiliates for each
visitor or customer brought about by the affiliate's own marketing efforts.
Inbound marketing: involves creating and freely sharing informative content as a means of
converting prospects into customers and customers into repeat buyers.
Content marketing: involves creating and freely sharing specific, expert content to help the
community understand one or many subjects dealt with on a specific website. It is a mean to pull
interested people or prospects into the website trying to convert them into customers or free
subscribers, and customers into repeat buyers.
Video marketing: This type of marketing specializes in creating videos that engage the viewer into a
buying state by presenting information in video form and guiding them to a product or
service Online video is increasingly becoming more popular among internet users and companies
are seeing it as a viable method of attracting customers.

3. Advantages of Internet Marketing
Reduced Cost The starting cost of online marketing is only a fraction of the thousands of dollars
that Yellow Pages, television and radio ads cost. In addition, while traditional ads may only run
for a short time, a search engine optimization campaign can deliver long-term results.
Brand Engagement In the crowded market, you need to establish and maintain positive brand
awareness and client loyalty. Apart from word-of-mouth and leveraging your personal
relationships with your established clients, a website is the most important marketing tool a
business can have.
Demographic Targeting The degree to which an online marketing campaign can target and
measure the response from specific demographics and regions is often astonishing to business
owners who normally use traditional media.
Real-Time Results With online marketing you don’t have to wait weeks to see a significant boost
in your business. With a paid search marketing campaign you can experience real-time results
that enable you to fine-tune your marketing message to achieve your desired effect.
Easily Refine Your Strategy Using online marketing analytics and tracking tools you can test
conversion rates at a fraction of the cost of a traditional media campaign.
Long-Term Exposure The benefit of an organic search marketing campaign that optimizes a
website for specific keywords is that you will achieve a long-term return on your investment.
Motivation For Project
Scope of Social Media marketing is growing at an immense rate because it provides huge audience and
that audience is growing at a large rate. Almost every 5th person in this world has an account on some
social media, and many have multiple accounts. This audience is immensely attractive to Brands and
Marketers around the world.
The problem faced lies in the fact that it is difficulty in measuring the impact generated by social media
marketing. There are several aspects that have to be considered like the awareness generated about
brand, the involvement of consumers in accomplishing company’s goals through word-of-mouth
marketing or through engagement in spreading awareness regarding brand.
So our aim is to define a metric that encompasses all the important aspects of online social media
marketing and provides a metric that provides a quantified measure of sales, cost efficiencies, product
development, market research and also measure impact of consumer awareness about brand,
consumer engagement and word-of-mouth publicity.

4. Our Timeline
Our Approach
We are focused on defining and testing a metric that could measure the quantified impact produced by
different factors in Social media marketing and for that we have analyzed various Internet marketing tools
and techniques. We have designed a website to collect data to test our hypothesis and started applying
various tools on our website. Also we have defined a draft version of our metric which is explained below.
Study of Internet Marketing tools
Google Analytics
Google Analytics (GA) is a service offered by Google that generates detailed statistics about the visits to
a website. The product is aimed at marketers as opposed to webmasters and technologists from which
the industry of web analytics originally grew. It is the most widely used website statistics service. The
basic service is free of charge and a premium version is available for a fee. GA can track visitors from all
referrers, including search engines, display advertising, pay-per-click networks, e-mail marketing and
digital collateral such as links within PDF documents.
What it finds out?
Pageview: A pageview is recorded every time a page is viewed. When a visitor hits the back button, a
pageview is generated. When a visitor hits refresh, a pageview is created. Every time a page is opened in
the browser, regardless of whether it has been cached, it generates a pageview.

5. Visit: Google Analytics focuses on visits. This is simply a series of pageviews that a single visitor makes at
a time. A visit ends after the visitor either closes the browser or is inactive for 30 minutes.
Visitors: Defined by a unique ID set in a visitor's cookies. Whenever the tracking code is executed, it
looks for cookies on the browser set by the current domain. If they can't be found, new cookies with a
new ID are set.
Bounce: A visit with one pageview. It doesn't matter how long the visitor was on the page or how they
left.
Time on Page: Time on page is measured by subtracting the time a visitor hit a page from the time they
hit the next page.
Time on Site: This is the sum of all times on page for a visit. Or, more accurately, it is the difference
between the time they viewed the first and last pages in a visit.
New Visitor: A visitor who did not have Google Analytics cookies when they hit the first page in this visit.
Should the visitor delete their cookies and come back to the site, they would be counted as a new
visitor.
Returning Visitor: A visitor with existing Google Analytics cookies. Those cookies typically will also
record the number of visits the visitor has made to the site.
Dollar Index: A measurement of how influential a page is to conversion. It doesn't indicate how much
money a page brought. Rather, it's a score. The higher the number, the more frequently it was viewed
prior to a purchase or conversion. It's calculated by taking the goal conversion value or transaction value
of a visit and applying it evenly to all the pages prior to that conversion. Seen in aggregate, it just
attempts to correlate pages to conversions.
Pages/Visit:Pageviews divided by visitors.
Direct Traffic: Ideally, this is the traffic that came to a site via bookmarks or by directly typing in the URL.
Referring Sites: This is traffic for which
(1) a referrer was identified,
(2) the referrer is not a search engine
(3) there are no campaign variables.
This should only represent free traffic, friendly referrals to a site. If campaign variables are used, no paid
traffic should be attributed toward referrals.
Search Engine Traffic: Google Analytics automatically categorizes traffic as coming from a search engine
if the referring URL is from its list of known search engines and there is a search term identified in that
URL. Both organic and paid search engine traffic is put into this group.
Event Tracking: A new feature that allows analysts to track events that happen after pageload without
creating virtual pageviews and inflating pageview counts.
Google Analytics API: The API extracts data from Google Analytics accounts. It permits custom scripts
and programs to incorporate Google Analytics data.

6. RavenTools
SERP Tracker provides keyword rankings once a week for keywords and phrases that we add manually or
pulled in from Research Central. It keeps a six-month history of the keywords (beginning when we start
tracking) and allows quickly comparing rankings of identified competitors.
Twitter traffic and goal conversions. Every Raven account allows an unlimited number of Twitter
accounts. For each Twitter account, it gives:
1. Tweets – posts, mentions, and replies
2. Mentions – replies and retweets
3. Connections – followers and friends
4. Traffic – Google Analytics visits and goal conversions
5. Quickly choose a data range to show activity over a specific timeframe. Raven also
shows comparison data versus the same prior period.
Facebook Insights and goal conversions. Every Raven account allows an unlimited number of
Facebook accounts. For each Facebook account, you can see Facebook Insights, including:
1. Likes
2. Reach
3. Talking About This
4. Traffic — Google Analytics visits and goal conversions
Metrics for authorized YouTube accounts include:
1. Views – upload and channel
2. Subscribers
3. Traffic — Google Analytics visits and goal conversions
Email is the best conversion method. With Raven, we can authorize email accounts from
Campaign Monitor, MailChimp and AWeber to track:
1. Opens
2. Clicks
3. Email bounces
4. Bounce rates for referral traffic
5. Best of all, Raven can track Google Analytics goal conversion resulting from email.
Using Research Central, we can research competition’s keyword strategy. Using data from
SEMRush, we can break down:
1. Paid keywords
2. Avg. position
3. Percentage of traffic
4. Percentage of cost
5. Ad landing page

7. 6. In addition, Research Central shows the top competitors in paid search and how many
keywords your target website has in common with those competitors. You can dive
deep into the actual keywords for better research.
Raven’s Social Monitor uses social media analytics from uberVU to perform keyword searches
on the most popular social networks.
We can customize your search by:
1. Social network — Facebook, Twitter, Reddit and more
2. Type of post — Post, comment, video, photo, etc.
3. Language — Raven supports more than 20 languages.
4. Author influence — Choose authors by the number of followers
Competitor Manager tracks and categorizes all the competitors.
1. Manage multiple competitors
2. See snapshot of domain statistics, including quality, mozRank, Domain Authority, pages
and links
3. Start and stop keyword tracking for competitors
4. Tag competitors for categorization and filtering
5. Export data
Our Social Media Metric
Return on Impression
The first metric we define is to track the return on impression which is the number of people who
actually see some ad, marketing material, or other tangible marketing piece. For example, online
advertising can be tracked by the number of times an ad is displayed on screen to a person. This is
particularly easy to track if you’re running pay-per-impression ads.
To measure it we use data from Google analytics which can provide information about number of users
who have seen a particular advertisement.
Return on Perception
Companies don’t build brands, consumers do by experiencing those brands, developing feelings for
those brands and emotional connections to them, and talking about those brands with other people.
Thanks to the social web, those conversations are far-reaching. Therefore, a marketing initiative
performance analysis would be incomplete without analyzing how that initiative affected consumer
perceptions of the brand.
To measure it we define the following metric system
1. Conversation Rate.
Conversation Rate = # of Audience Comments (or Replies) Per Post

8. One good thing it can be measured on every social channel on the planet. Blog. Twitter. Facebook.
Google Plus. YouTube.A high conversation rate requires a deeper understanding of who our audience is,
what our brand attributes are, what we are good at, what value we can add to our followers and the
ecosystem we participate in. So aiming for a higher Conversation Rate and have meaningful
conversations with our audience.
2. Amplification Rate.
Every channel has inherent limitations, often exhibited by the number of ads you can buy. On Google
(paid search), on Facebook (display ads), on Radio (audio ads), and all other channels we can think of.
But social media has a profound advantage that can be used tap into. Not only do we have a network, but
every node in our network has a network of its own! If we post something "incredible, relevant, of value" to
our audience then they can allow you to break free of the limitations of our network and spread your word
around to a more massive audience!
So measure Amplification, the rate at which our followers take our content and share it through their
network.
On Twitter:
Amplification = # of RetweetsPer Tweet
On Facebook, Google Plus:
Amplification = # of Shares Per Post
On a blog, YouTube:
Amplification = # of Share Clicks Per Post (or Video)
(Share clicks as in number of times our social media buttons can be used to spread the content.)
3. Applause Rate.
A powerful, more immediate way, to understand consumers is to measure Applause.
On Twitter:
Applause Rate = # of Favorite Clicks Per Post

9. On Facebook:
Applause Rate = # of Likes Per Post
On Google Plus:
Applause Rate = # of +1s Per Post
On a Blog, YouTube:
Applause Rate = # of +1s and Likes Per Post (or video)
We want to know what the audience likes (to use the Facebook terminology) and what they don't. We get
a much deeper understanding of what our audience likes so much that it will +1 our content (or
contribution) and allow for that to be then shown to others in their social graph. That's reassuring to our
social graph, our selfless social media contribution comes back to assist us in driving valuable business
outcomesIndividually the numbers are available in most tools.
Measuring the Economic value of returns
Measuring Economic Value
Economic Value can be defined as
Economic Value = Sum of Short and Long Term Revenue and Cost Savings
Focus on the Per Visit Goal Value (economic value delivered by visitors from social media channels
across conversions)
To measure it we will use data from tools like Google Analytics, webtrends, Raven tools etc
Future Work to be Done
To develop a test website for collecting data to verify hypothesis
Using tools like Google analytics, Raven Tools, Alexa ranking system to collect data from test
website
Develop API for collecting data from social networking site namely twitter and Facebook.
Modeling of collected data using data modeling techniques
Analyzing collected data for verification of Hypothesis

10. References
Can you measure the ROI of your Social Media Marketing (MIT Sloan Review paper)Donna L.
Hoffman, Marek Fodor
ROI in social Media marketing A look at arguments Tia Fisher
Google analytics from Google analytics blogs
Raven tools from Raven tools blog