KPI stands for Key Performance Indicators. Every business’s digital marketing strategy should always include KPI in digital marketing.
KPI stands for Key Performance Indicators. These metrics help you measure “how well” something is performing. It’s tracking your progress, whether you’re hitting your specific goals. KPIs are widely used across various sectors in the Philippines, such as businesses, human resources, schools, healthcare, government, non-profit organizations, customer service, and digital marketing. Every business’s digital marketing strategy should always include KPI in digital marketing. While some merely see KPIs as non-essentials and additional work, here are why you shouldn’t completely ignore them.
The Importance of KPI in Digital Marketing
Measuring your business’s success isn’t just about increasing your monthly earnings. Although hitting those sales numbers is the ultimate goal, KPI in digital marketing gives you a clearer picture of how every part of your business is performing.
The businesses that come out on top usually tweak and refine their digital marketing strategy based on solid data, not just gut feelings. Understanding why KPIs are important to your digital marketing efforts can help you create a more strategic approach and ensure your business stays ahead in the competitive digital marketing landscape of the Philippines.
KPIs Help Set Clear Goals

While businesses can operate without KPIs (small businesses often manage just fine), they may not be setting themselves up for long-term success. The problem is that without KPIs, it’s harder to scale up and maintain momentum. Studies show that around 80% of businesses fail within the first 18 months, often because they lack a strategy backed by measurable goals.
Whether aiming to hit a certain follower count or boost online sales, KPIs give you a framework to work with. They help ensure you’re working hard and directing your efforts toward meaningful goals that drive real progress.
KPIs Measure the Effectiveness of Your Campaigns
Today, businesses heavily rely on digital marketing because most of their target audience is now online. To reach their ideal customers, they create various digital marketing campaigns, such as social media ads, pay-per-click (PPC) ads, email marketing, search engine optimization (SEO), and content marketing strategies. Knowing how to measure the right metrics in these areas is essential for those looking for practical marketing tips for business owners.
For example, your ad copy’s high click-through rate (CTR) suggests it’s grabbing attention. However, a low conversion rate indicates that your landing page or offer may be less effective than the ad. Regularly monitoring KPIs can refine your campaigns and allocate your budget more effectively, leading to better results.
KPIs Track Your Return on Investment (ROI)

Running a business is all about investing, whether it’s time or money. With KPI in digital marketing, you can track your ROI. For example, you’re spending money on ads, but how can you tell if it was worth it?
KPIs like cost per click (CPC), cost per acquisition (CPA), and return on ad spend (ROAS) provide the insights you need. They show you exactly how much you’re getting back from your marketing spend. These metrics let you know if your marketing budget is being spent wisely.
KPIs Prevent Guesswork
Have you ever spent hours crafting a social media post for your business, certain it will go viral, only to underperform? Meanwhile, a post you barely think about ends up getting more attention. It’s frustrating, right? This is where KPIs make all the difference.
KPIs allow you to make decisions based on data, not guesswork. If you notice one type of post consistently outperforming others, you can create more of that content to maximize engagement and drive better results. This shows the importance of digital marketing in business, as it lets you focus on what’s working and makes your strategy more effective.
7 Key KPIs to Monitor for Success in Digital Marketing
When it comes to digital marketing, there are hundreds of KPIs you could track. It can get a little overwhelming with so many different marketing channels, from social media marketing to SEO. But no matter what industry your business is in, a few key KPIs really matter.
The following are the ones that give you the most valuable insights into how your marketing efforts are performing. So, let’s break down the top KPIs you should monitor to ensure your digital marketing strategy is on track.
1. Conversion Rate
Conversion rate is a key KPI in digital marketing. It shows how effectively your efforts convert visitors into customers or leads. Conversion rates vary across industries. But achieving between 2% and 5% is already considered good. You can track it through tools like Google Analytics or your CRM platform. Analyzing this KPI helps identify which campaigns are falling short so you can tweak them for better results.
General formula:
Conversion Rate = (Total Visitors/Total Conversions) × 100
2. Return on Ad Spend (ROAS)
ROAS shows you how much revenue you earn for every dollar spent on ads. Each advertising platform, like Google Ads or Facebook, has its way of measuring ROAS, making it easier for you to track. Analyzing your ROAS lets you see which ads bring in the most profit and which need some tweaking. If your ROAS isn’t achieving your goals, it might be time to adjust your targeting, revamp your ad visuals, or improve your ad copy.
General formula:
ROAS = Total Ad Spend/Revenue from Ad Campaign
3. Customer Acquisition Cost (CAC)
Through your marketing efforts, CAC tells you how much it costs to acquire a new customer. Depending on your marketing platform, you can track it with tools such as Google Analytics, Facebook Ads Manager, Kissmetrics, HubSpot, and Salesforce. If your CAC is too high, you need to refine your targeting or explore digital marketing solutions for business to optimize your campaigns.
General formula:
CAC = Number of New Customers/Total Marketing Costs
4. Website Traffic
Website traffic lets you see how many people visit your site and where they come from. Tools like Google Analytics let you track total visits, unique users, and traffic sources within a certain period. By analyzing your web traffic, you can see which channels bring in the most valuable visitors. If you notice a drop in traffic, you must revisit your SEO strategy and other online marketing efforts.
5. Click-Through Rate (CTR)
CTR measures your ads or content’s effectiveness at getting people to click. Platforms like Google Ads, email marketing tools, and social media analytics can help you track this KPI metric. Adjusting your ad copy or visuals could boost results if your CTR is low.
General formula:
CTR = (Total Clicks/Total Impressions) x 100
6. Social Media Engagement
Social media engagement refers to how people connect with your content through likes, comments, shares or saves. Each social media platform has built-in tools to track these actions. But if you want an easier way to monitor everything in one place, you can try tools like Buffer, Hootsuite, or Metricool. By analyzing engagement, you can pinpoint what your audience enjoys most and create more of that content.
7. Email Open and Click Rates
Email open and click rates measure your email campaigns’ success at capturing attention and encouraging action. Platforms like Mailchimp, Kit, and ActiveCampaign help you track these metrics. If your email opens and click rates are low, try tweaking your subject lines or CTAs. Keeping track of KPI in digital marketing like email open and click rates ensures you’re connecting with your audience most effectively.
The Power of KPI in Data-Driven Decision Making

Success in digital marketing comes down to making innovative and data-driven decisions. By focusing on KPI in digital marketing, you can see what’s working and what’s not, allowing you to adjust your strategies for maximum results. Tracking key KPI metrics gives you all the necessary data, ensuring your digital marketing strategy stays aligned with your business goals.
Ready to take your digital marketing in the Philippines to the next level? Partner with Eight Media, and let us guide you in tracking the right KPIs and creating strategies that lead to measurable growth. Contact us today for a free consultation!