4 Best ROI Digital Marketing Strategies!
Return on investment is one of the main, if not the main, factor that any business must measure. That applies to every business investment made, and marketing is no exception. Digital marketing has many possible channels and strategies you can use to communicate with your customers, and not all of them have a high return on investment.
One of the golden rules for any business is to have a constant average ROI on your digital marketing and sustained growth. It tells you the result for every euro invested or how much return that euro generated for the company.
So, what digital marketing strategy offers the highest ROI?
Naturally, you need to understand the fundamentals of the possible digital strategies you can use, and we can split them into inbound marketing of outbound marketing strategies. In a very simplified way, in Inbound Marketing, we want the customer to be attracted and come to us, and in Outbound Marketing, we go after the customer.
If you don’t know what digital marketing is and what strategies and tools exist, you can visit our post on digital marketing.
Both inbound and outbound strategies have their strengths and weaknesses, focusing on using different marketing channels/tools. If we could use any of these tools/strategies regardless of the background strategy, this would be the ranking according to ROI.
Table of Contents:
1. SEO - Search Engine Optimization
SEO stands for “Search engine optimization”. In simple terms, it’s the process to improve your website to increase its visibility and relevance in online searches. The better your visibility in search results, the more likely you draw attention from existing and potential customers to your business.
One of its main advantages is the low costs that this strategy can have and done in the right way that can produce highly significant long-term results. A survey of senior marketers worldwide conducted by SmartInsights, TFM (Technology for Marketing) and eCommerce expo showed that the majority of respondents believe SEO is the highest ROI channel when compared to other digital channels such as social media, paid search advertising and email.
SEO takes time to achieve its effects, but once it starts working, it’s unmatched. According to the brightedge report, 51% of all website traffic comes from organic search results.
So this makes SEO one of the best digital marketing strategies for average revenue return.
There are upfront, tricky, and time-consuming hurdles regarding site structure, content/keyword density, meta descriptions and mobile device optimisation. An optimised site has a growing potential in rankings over time, delivering a steady ROI for years to come.
To learn more about SEO, read the article we published on our blog.
2. E-mail Marketing
Compared to other marketing channels, email marketing costs very little. For every €1 spent, the average return on investment in email marketing is €44.25.
But why does email marketing outperform other channels in ROI so significantly?
It’s all about delivering highly personalised and relevant messages. Unlike social media, where updates are sent to followers regardless of their location, interests and purchase history, email allows you to be hyper-targeted in your communications.
The more information you have about your customers, the more targeted and accurate your email marketing can be.
This segmentation and dynamic content helps ensure that the content you send is relevant to each recipient, leading people to click, make purchases – and increase the ROI of your email marketing campaigns.
A study by Monetade indicates that 4.24% of email marketing visitors buy something, compared to 2.49% of search engine visitors and 0.59% of social media.
The main drawback of this strategy is that it requires a proactive campaign to maintain the contact database to reach customers. These contact databases take time to create, but a company willing to pursue this type of online marketing can expect good average results.
To learn more about email marketing, read our article “7 reasons to invest in email marketing“.
3. Paid Search Marketing (PPC)
Paid search is not the channel with the best ROI of all the options available, but it is the fastest in terms of results. That is probably the reason why this is where businesses spend the majority of their digital marketing budget.
Also, if done correctly, it provides a very rapid ROI for new businesses looking to increase traffic quickly or for sites that want to capitalise on a short-term window.
Paid search advertising involves paying for ads to appear alongside regular search results.
The biggest platform for this is Google Ads (previously known as Google AdWords), the world’s largest search engine, and in Europe, it accounts for 93.4% of the total market. Another choice is Microsoft’s Bing, where you can advertise on Microsoft’s search engine Bing and other search engines like Ecosia.
If you want to know search engine market share in Europe, visit our blog article, which we update regularly.
According to Google, for every €1 spent on Google Ads, businesses earn an average of €2 in revenue, which is a very interesting ROI. Despite these high returns, be aware that this work needs to be meticulous and time-consuming, especially if you want to get results that pay off your investment. You will need to have a strong keyword strategy and constant monitoring.
Learn more about Pay per click advertising on our blog.
4. Social Media
Did you know that more than 45% of the global population uses some social network in the most developed regions? The use of social networks reaches 70%. There are over then 3.5 billion people joined daily by online platforms! (Global Digital 2022).
Social media has quickly earned its way to becoming one of the best new channels for digital marketing growth. Advertisers have learned that social media provides unique opportunities across paid and organic channels and can interact directly with shoppers.
1 in 4 US shoppers now says they prefer to be contacted by brands through social media, making platforms such as Facebook, Instagram and LinkedIn crucial for inbound marketing growth. Through the ability to promote a brand presence also comes the opportunity to market your services and products with eCommerce.
Marketers rank social media among their top strategies, with almost 20% saying it offers them the highest return than other strategies.
Facebook advertising shows the best ROI in social media, with Facebook services such as advertising for Feeds, Messenger, Marketplace and Instagram representing the highest opportunity to deliver results.
At Link37, we have a team specialized in Digital Marketing with the most advanced tools on the market at your disposal. At Link37, we have the experience and knowledge. Talk to us!
LAST REVISION ON APRIL 2024
