Whether you’re a large company or a small business, it pays to think about the return on investment (ROI) when you’re putting together a marketing plan. If you’re not maximizing your ROI, then you’re leaving money on the table.
Although ROI varies from business to business, taking a look at general trends can give you a good idea of how to allocate your marketing budget. According to Nielsen, the average marketing return on investment is $1.09. That means for every $1.00 spent, you can expect to receive a net profit of $1.09.
So where do you start? The options are seemingly endless: from traditional (or legacy) mediums like direct mail and telemarketing to all things digital━email marketing, SEO, paid search, internet display ads, etc.
In terms of ROI, no marketing medium can compete with email marketing where the average return per $1.00 spent is a whopping $40.00. To compare, traditional marketing mediums range from $7.00 for direct mail to $0.94 for TV ads to $0.24 for newspaper ads. Yes, you’re reading that right. TV and newspaper ads lose money!
Digital marketing mediums fare better than legacy marketing mediums, but email marketing is still the clear leader.
Not only does email marketing have the highest ROI by far , one in five companies report an ROI of over 70:1! If you want to reach that next level, keep in mind that 77% of ROI comes from segmented, targeted, and triggered messages.
If all of this sounds like a foreign language—that’s OK. That’s why we’re here.
