Anywhere you look on the internet nowadays, you will find digital marketing strategies. Companies and marketers are sharing their opinions here and there. However, instead of helping, it’s confusing those who are actually looking for some sane advice regarding investing in digital marketing.
You might say, we are doing the same, but that’s not the case! We are sharing a well-supported study with you that shows which are the best paying digital marketing channels that you can invest in. Additionally, we are sharing the metrics that you can use to measure the ROI yourself.
But before that, we will discuss briefly what ROI is and why you must consider it before investing in a digital marketing strategy.
ROI stands for return to investment. It is the profit or loss incurred by a particular digital marketing strategy and campaign. The math is simple; the more ROI you generate equals, the more money you make.
ROI is also the measuring unit for the success of a marketing campaign. Without it, you would keep spending money on your strategies and campaigns without ever knowing what result they are ultimately yielding.
You may have been using sales revenue as the ultimate measuring metric for your marketing strategies, and we are not discarding its effectiveness. But what if we tell you there are better ways to measure long term success?
Not all marketing campaigns focus on sales directly. Strategies like content marketing concentrate on nurturing leads and building brand awareness and are beneficial but does not directly impact sales. So, measuring sales revenues does not cover all the grounds. The following are the steps to determining metric selection:
- Define the primary goal: it is perfectly normal to have multiple goals for your digital marketing services but to measure its long-term effectiveness, you must set one primary goal.
- Select one metric: to measure the primary goal’s success; you need to select a single metric.
- Assign a value to a metric: after choosing the metric, you should assign a value to it. Your sales and marketing team can help you do the same.
Let’s look at an example:
You may have strategized your digital marketing campaign intending to generate qualified leads, engage your customers, and increase brand awareness; the first step is to segregate one as your primary goal. Let’s say it’s generating quality leads.
Once you have decided upon the goal, you need to identify the measuring metric. In this case, it would be the number of qualified leads. You would not consider the number of website visits or any other factor as it has no contribution in this context.
After finalizing the metrics, we have to assign a value to the metric. Your marketing team can allot a budget for this campaign and calculate the results to compare the campaign’s success.
Now that we are through with “how to calculate the ROI,” let’s list the channels with the highest ROI.
Everything you come across on the internet and spend your time engaging with is content. Let’s look at some wholesome stats before we get into the ROI generated by content marketing:
- 91% of B2B marketers rely on content marketing
- 72% of marketers claim that content marketing increases engagement
- 48% of marketers are making YouTube videos a priority.
All these stats suggest the same thing, the effectiveness of this form of marketing. Product videos, testimonies, blog posts, webpages, and various other forms of content provides multiple ways to create brand awareness, increase traffic, and build brand loyalty.
The popularity of content marketing is based on the value it offers to consumers. They get attracted to the content automatically and develop a sense of reliability and loyalty towards the brand.
Providing valuable content can be time-consuming, even challenging, but we recommend it for its excellent results. We have found that 72% of marketers who have tried content marketing have seen an increase in the number of qualified leads. One thing that is good to do when doing content marketing is to use an online feedback platform to survey your content and if you have options to get feedback to decide what content to put out.
We have placed content marketing in this list not only because it has one of the best ROI but also for the long term benefit it adds to the brand.
Email marketing is the holy grail of digital marketing, eminent for generating the highest ROI. Here are some fantastic facts about email marketing:
- For each dollar spent on email marketing, there is a return of $42
- About 90% of marketers use email to reach their target audience organically
- Up to 81%, SMBs depend on emails as their primary customer acquisition channel.
The most significant advantage of email is that it is personalized. You can directly reach the inbox of your consumer without depending on any third party or additional channel. They are very impactful when it comes to connecting with customers, earning repeat business, and building brand loyalty.
The most exciting factor about email marketing is that you are approaching prospects that are already interested. They have shared their email IDs with you voluntarily. Thus you get qualified leads that are more likely to get converted.
Fun fact: email marketing has even proven effective in turning back cold leads and drawing conversions.
Thus, it recommended for marketers to build a subscriber list and concentrate on consistent email marketing.
Every digital marketer who has been around; knows about the value of SEO. Search engine optimization is one of the most effective formulas to generate higher ROI when applied right.
The following are some interesting facts about SEO:
- 68% of digital experience begins with a search engine
- According to Sparktoro upto, 92.96% of global traffic comes from google search, google map and google images
- BrightEdge says upto 53.3% of the total website traffic comes from organic search
However, it isn’t easy to achieve the desired results in this matter. SEO is very competitive, and there is only one position for a single keyword. Additionally, it takes a subsequent amount of time to develop SEO.
Therefore, even though it has a high ROI, we advise marketers to collaborate SEO with other marketing campaigns to get the best result.
Pro tip: the tick with SEO is to be consistent. Keep producing good content and optimize it to get the desired results.
Social media platforms are not only growing popularity among consumers but marketers as well. As people are spending more and more time on social media, it is becoming a prospective channel for building brand awareness and promoting products. Here is what we found:
- More than 40% of the world’s population is on social media
- Upto 54% of browsers use social media to research a product
- 73% of marketers believe in social media marketing
Social media makes a list for the same reason as others. All sorts of content, including explainer videos, blogs, podcasts, etc., perform really well and generate significant ROI on these platforms. Thus, marketers must exploit it to their full potential.
However, it must be noted that social media marketing must not be your only marketing channel. Use it in collaboration with other campaigns or strategies to amplify the campaign efforts.
If you want to get the best out of your social media campaign, we recommend using organic and paid social media.
As we already mentioned, sales revenues are not entirely adequate when it comes to measuring ROI. Thus, to better understand how these above-mentioned marketing strategies are performing, define their metrics accordingly.
If you can exploit these marketing channels’ full potential completely, you will definitely break your own records and generate the impressive ROI that you have always been hoping for.