With limited resources and a need to quickly establish a presence, understanding and optimizing the return on investment (ROI) from marketing activities is more important than ever.
ROI is an important metric that measures the success of marketing efforts, providing insights into which strategies drive the most value and which fall short.
This guide delves into the best ROI marketing tactics for new brands, offering detailed explanations, real-life data, and actionable advice to help businesses maximize their marketing impact.
By exploring a variety of marketing channels—from traditional methods like direct mail to modern digital strategies like influencer marketing and social media advertising—we aim to equip you with the knowledge to make informed decisions that boost your brand's visibility and profitability.
Let's get started on the path to maximizing your marketing investments and driving sustainable growth for your brand.
Marketing ROI (Return on Investment) is a performance measure used to evaluate the efficiency and profitability of marketing investments.
It quantifies the financial return generated from marketing activities relative to the amount spent.
Understanding and calculating marketing ROI allows businesses to make informed decisions about where to allocate their marketing budgets for maximum impact.
Marketing ROI is a critical metric because it provides insights into the effectiveness of marketing strategies.
By measuring ROI, businesses can determine which campaigns are driving sales and generating value, and which are not.
This helps in optimizing marketing efforts and ensuring that resources are being used effectively.
Calculating marketing ROI involves a straightforward formula:
Let's say a company spends $10,000 on a marketing campaign, which generates $50,000 in revenue. The ROI would be calculated as follows:
This means the company made a 400% return on its marketing investment.
For new brands, navigating the myriad of available marketing tactics can be challenging.
From SEO and PPC advertising to content and social media marketing, we'll explore each tactic in detail, providing actionable insights and real-life data to help you make informed decisions.
These strategies have been proven to not only attract and engage customers but also convert leads into loyal brand advocates, driving sustainable growth for your business.
SEO is a powerful tool for improving your brand's visibility online. It involves optimizing your website and content to rank higher in search engine results pages (SERPs), thereby attracting organic traffic.
According to Hubspot, 61% of marketers say improving SEO and growing their organic presence is their top inbound marketing priority.[1]
The ROI of SEO can be substantial, with research showing that it can deliver a 14.6% conversion rate compared to 1.7% for traditional outbound methods such as direct mail or print advertising.
Here are the key components of SEO:
On-page SEO focuses on optimizing individual web pages to rank higher and earn more relevant traffic. Key practices include:
Off-page SEO involves actions taken outside your website to impact your rankings within SERPs. This includes:
The ROI of SEO can be impressive.
For instance, an analysis by BrightEdge found that organic search is responsible for 53.3% of all website traffic.[3]
By leveraging SEO effectively, new brands can establish a strong online presence, attract high-quality traffic, and achieve sustainable growth.
PPC advertising is a powerful way to quickly drive targeted traffic to your website.
Unlike organic methods, PPC allows you to place ads on search engines and social media platforms, paying only when someone clicks on your ad.
According to Google, businesses make an average of $2 in revenue for every $1 they spend on Google Ads, showcasing the potential ROI of this strategy[4]. Here are the key components and channels for PPC advertising:
Google Ads is one of the most popular PPC platforms, allowing you to create ads that appear in Google search results and across the Google Display Network. To maximize ROI with Google Ads:
Social media platforms like Facebook, Instagram, and LinkedIn offer robust PPC advertising options. Social media ads can be highly effective due to their precise targeting capabilities. Key practices include:
Average conversion rate (CVR) for Meta Ads by Industry Chart
The ROI of PPC can be significant, especially when campaigns are well-optimized.
Research indicates that businesses see an average ROI of 200% from PPC campaigns, meaning that for every dollar spent, two dollars are earned . Additionally, PPC visitors are 50% more likely to purchase something than organic visitors, highlighting the conversion potential of this strategy .
By effectively leveraging PPC advertising, new brands can drive immediate traffic to their websites, attract high-quality leads, and achieve substantial ROI.
Content marketing involves creating and distributing valuable, relevant content to attract and engage a target audience. This strategy is designed to build trust, establish authority, and ultimately drive profitable customer actions.
According to the Content Marketing Institute, content marketing generates over three times as many leads as outbound marketing and costs 62% less.[7]
The ROI of content marketing can be substantial, with businesses reporting that their content marketing efforts lead to a 6x higher conversion rate compared to other methods .
Here are the key components of content marketing:
Blogging is a foundational element of content marketing, allowing brands to share knowledge, engage with their audience, and improve SEO.
Video content is increasingly important in content marketing, offering a dynamic way to convey information and engage viewers.
According to Wyzowl, 84% of people say they’ve been convinced to buy a product or service by watching a brand’s video.[8] Key practices include:
Social media marketing involves using social platforms to connect with your audience, build your brand, and drive website traffic.
It is an essential component of a modern marketing strategy, allowing brands to engage directly with consumers and create a community around their products or services.
According to a survey by HubSpot, 92% of marketers say that social media marketing is important for their business, with 78% reporting that social media increased traffic to their website.[1]
The ROI of social media marketing can be substantial, with data showing that businesses that leverage social media effectively see improved brand awareness, customer loyalty, and sales.
Organic social media involves posting content on your brand's social media profiles without paid promotion.
This strategy helps build a loyal following and engage with your audience authentically. Key practices include:
Paid social media involves using the advertising features of social platforms to promote your content to a wider audience. Paid ads can significantly amplify your reach and drive targeted traffic to your website.
You’ll want to keep a few things in mind:
The ROI of social media marketing can be significant.
Additionally, businesses that use social media to nurture relationships with their customers see higher retention rates and increased customer loyalty.
Effective social media marketing not only drives immediate traffic and sales but also builds a long-term community around your brand.
Email marketing remains one of the most effective ways to reach and engage your audience.
This strategy allows brands to communicate directly with consumers, providing personalized content that can drive high conversion rates.
According to the Data & Marketing Association, email marketing has an average ROI of $42 for every $1 spent, making it a highly cost-effective marketing channel.
Segmented email campaigns involve dividing your email list into specific groups based on various criteria such as demographics, purchase history, or engagement levels.
This allows for more targeted and relevant messaging.
Automated email workflows are sequences of emails triggered by specific actions or time intervals.
These workflows ensure that your audience receives timely and relevant information without manual intervention.
Email marketing builds trust and nurtures relationships, leading to increased customer loyalty and lifetime value.
By leveraging email marketing, new brands can maintain direct communication with their audience, drive high engagement, and achieve substantial ROI.
Influencer marketing leverages individuals with large followings to promote your products or services. This strategy is particularly effective for building brand awareness and trust, as influencers have established credibility with their audiences.
According to a survey by Influencer Marketing Hub, businesses are making $5.20 for every $1 spent on influencer marketing, highlighting its significant ROI potential.[11]
Micro-influencers are individuals with smaller, but highly engaged, audiences. Typically, they have between 1,000 and 100,000 followers.
Macro-influencers have larger followings, usually between 100,000 and 1 million followers. They can provide broader exposure and reach a wider audience.
The ROI of influencer marketing can be substantial.
Furthermore, a case study by Tomoson found that businesses earn $6.50 for every $1 spent on influencer marketing, with the top 13% earning $20 or more per $1 spent.[14]
Influencer marketing not only drives immediate sales but also builds long-term brand loyalty.
Affiliate marketing involves partnering with individuals or companies who promote your products in exchange for a commission.
This strategy can be for driving sales and reaching new customers, as affiliates leverage their own networks and platforms to market your products.
According to a report by Rakuten Advertising, 81% of advertisers and 84% of publishers use affiliate marketing, demonstrating its widespread adoption and effectiveness[15]
The ROI of affiliate marketing can be substantial, with businesses earning an average of $6.50 for every $1 spent.
Affiliate networks connect businesses with potential affiliates who can promote their products.
These networks provide the infrastructure for tracking sales, managing commissions, and providing resources to affiliates.
Direct affiliate partnerships involve creating one-on-one relationships with affiliates who align closely with your brand values and target audience.
The ROI of affiliate marketing can be highly attractive.
According to a survey by Forrester Consulting, affiliate marketing accounts for 16% of all e-commerce sales, and businesses see an average of $6.50 for every $1 spent.[16]
This strategy, when managed well, can become a powerful component of your overall marketing plan.
In the quest to maximize ROI, new brands must navigate a sea of marketing tactics with precision and creativity.
By leveraging the right strategies—SEO, PPC advertising, content marketing, social media marketing, email marketing, influencer marketing, and affiliate marketing—you can ensure that every marketing dollar is well-spent.
From the organic allure of SEO and the instant impact of PPC, to the persuasive power of influencer marketing and the targeted precision of email campaigns, each tactic offers unique benefits and opportunities for growth.
The key is to blend these approaches into a cohesive strategy that aligns with your brand's goals and resonates with your audience.
Now, it's time to put these insights into action and craft your own marketing masterpiece. Happy marketing!
Sources
1. https://www.hubspot.com/marketing-statistics
2. https://backlinko.com/search-engine-ranking
3. https://videos.brightedge.com/research-report/BrightEdge_ChannelReport2019_FINAL.pdf
4. https://economicimpact.google/methodology/
5. https://unbounce.com/product/smart-traffic/
6. https://www.wordstream.com/blog/ws/2017/02/28/facebook-advertising-benchmarks
7. https://contentmarketinginstitute.com/articles/stats-invest-content-marketing/
8. https://www.wyzowl.com/amazing-video-marketing-statistics/
10. https://www.campaignmonitor.com/resources/infographics/how-effective-are-welcome-emails/
11. https://influencermarketinghub.com/influencer-marketing-benchmark-report/
12. https://markerly.com/pulse/micro-influencers-vs-macro-influencers/
13. https://www.nielsen.com/insights/2022/measuring-new-medias-impact-on-brand-awareness-and-roi/
14. https://www.tomoson.com/blog/influencer-marketing-study/
15. https://view.ceros.com/rakuten/digitalmediakit/p/13
16. https://impact.com/partnerships/forrester-consulting-study-unpacks-the-surprising-rewards-of-great-partnerships/