With so many different ways to market your business online it can be difficult to understand which strategies will provide you more customers and leads. Depending on your industry you’ll see differing success whether you decide to embark on an SEO campaign, inject cash into a PPC campaign or build an email marketing list.
So if you’re a bit perplexed as to which route to pursue, or just a little interested, we’ve scoured the internet to find the average return on investment that digital marketing channels can provide. These averages are also great for comparing your current results and determining whether you can improve on your successes.
The average cost per click using Adwords is around £2 however in some niches you can expect to pay upwards of £150 depending on competition! Despite some CPC’s being eye wateringly expensive you can still see an average of £2 in income for every £1 you spend with Adwords. In fact, visitors that click your ad are twice as likely to purchase something on your website than somebody that finds you in organic search results. This ties in with the fact that Google Ads receive 65% of all of the clicks for searches that include buying keywords or that have high commercial intent.
Alongside this positive financial return on investment, paid ads are proven to increase your website traffic by over 300% and this is probably why it is said that search ads can also increase your brand awareness by around 80%.
It is clear that an Adwords campaign run correctly can generate you some decent business however it is not all rosey. Adblocking has doubled from 15% to 30% since 2014 and it’s likely to continue to rise. This means that many users won’t ever see your ads and shows the importance on not over relying on one channel to bring in your new business.
Local Search Engine Optimisation (the art of appearing higher in search engine results for keywords that are local to you) should be an important part of any digital marketing campaign, but what is the return on investment?
It’s great news if you are a brick and mortar store, given that 75% of consumers who did a local search then went on to visit a store in 5 miles. 50% of these actually visit local premises the same day! When we get to the bottom of it, 28% of local searches on mobile lead to actual sales offline.
These are pretty exciting numbers regardless of whether you offer products or services. As we learnt in the previous section, some search advertising is very pricey. If your business fits within this category and you can successfully achieve high rankings for related keywords, you will see your ROI increase from 2-3x to over 10x your investment. That being said, your results will directly correlate with how much you are able to invest and for how consistently.
So rather than blowing a massive budget on decent results with Adwords it is possible to generate long term and affordable results through Local SEO.
Social Media Paid Advertising – Facebook
Another form of popular paid online advertising comes in the form of social media. Facebook in particular offers fantastic targeting options that allow businesses to identify their audience and present pertinent ads to them. Fortunately paid advertising through the likes of Facebook comes a lot cheaper than Adwords – around 20p per click. It may be for that reason, amongst others, that retailers increased their ad spend on social media by 200% over the last year.
In real terms, it is said that an ad campaign through a social media network such as Facebook can generate an average return of investment between 50%-400%. Since you can target users so effectively through the platform advertisers over recent years have seen their customer acquisition costs fall by as much as 75%.
Social media advertising is equally great at building brand awareness with an average cost per like of around 18p. An average cost of one thousand impressions is around £6.80 whereas you’re look more like £30 for a television commercial.
It’s obvious that social media advertising done correctly can yield fantastic results regardless of whether you are B2C or B2B, offering services or products.
It’s all been rosey with the channels we have discussed thus far but with organic social media marketing it becomes a little more dismal. You may read that an average return on investment for social media can be between 95% to over 200% and this may relate mainly down to how effectively time and resources are used.
This said, only 48% of marketers surveyed agreed that social media marketing gives them ANY form of return on investment, despite 77% of marketers utilising at least one social network. It seems in the marketing community that social media marketing splits opinion down the middle.
We have no doubt that social media can be effective for specific business types in specific niches but the evidence is less clear that it provides any significant ROI across the board. Despite this uncertainty, social media will always be a great place to build an audience and distribute your content so it should never be discounted entirely.
We’ve posted endlessly about the benefits of blogging as part of a good content strategy and the numbers do confirm what we constantly bang on about. 70% of people say that they would rather learn about products or services through reading content online and 68% of people enjoy spending time reading blogs and other content from brands they are interested in.
It’s no surprise then that year on year growth in unique website visitor traffic is on average 8x higher for businesses that have a strong content strategy. In addition, the conversion rates of websites that consistently produce content is nearly 6x higher than for those that don’t.
What’s more it’s likely that content marketing produces a much higher return on investment than we are able to analyse. Regular fresh content is a central pillar in any SEO campaign and really boosts your chances to rank for a wide range of keywords. Equally, content is the mainstay of any social media marketing campaign and as we said above, these platforms are perfect for circulating your content to build an audience.
If you are able to generate website traffic through engaging content, whether this is through social media or guest posting, you’re likely to save a fortune on SEO management fees and paid advertising!
With 73% of millennials identifying that email is their preferred way of communicating with businesses, it would be foolish to disregard this viable marketing option. Knowing that 73% of 18-24 year olds check their emails on their phones, a business can effectively promote their products right into the pockets of their audiences.
When it comes to an average ROI, email marketing can generate around £35 for every £1 spent. Even better, customers that purchase products after viewing an email end up spending 140% more than customers that do not receive an email offer. Since email is fairly cost effective and provides a great potential ROI, it is often regarded as one of the best channels available to small businesses.
If you think these numbers are pretty impressive you’re not alone. 80% of retail professionals note that email marketing is the greatest driver of customer retention and 59% of B2B marketers say that email is the best channel in terms of revenue generation.
Not only does marketing via email generate traffic back to your website – it also helps ensure that this traffic is interested and relevant to your business. If customers are accessing and engaging with your emails regularly it’s a great sign that they will become paying customers in the future.
We hope that you’ve found this blog post useful – there’s certainly a lot of facts and figures to process! As always if you have any questions about this post please leave a comment or get in touch!
Liam is a website designer and digital marketer based in Leeds, West Yorkshire. He spent a decade working within the charity sector before moving into the marketing space a number of years ago. Liam always strives to do something slightly different with every project and always designs to deliver results, not just pretty websites.