digital marketing ROI statistics

Digital Marketing ROI Statistics that rove the industry is growing

A digital marketing strategy is vital for your business, especially in today’s digitized world.

However, this article is not centred on creating a digital marketing strategy; rather, SEO Consultant Luca Tagliaferro will discuss how you can measure your digital marketing strategy success. 

While factors like user engagement, cost per lead, lead-close rate, and average order value are important, Return on Investment (ROI) plays a bigger role in the business aspect of your digital marketing strategy.

digital marketing ROI statistics

The ROI of Digital Marketing for your business

ROI is a performance metric you can use to evaluate the success of your digital marketing investment, letting you know whether you are effectively using your money. Each digital marketing channel has an estimated ROI which you should know to enable you to calculate your ROI appropriately.

It is also very easy to calculate your ROI.

👉 Also read: what is the ROI of SEO?

You must subtract the initial money invested from your current revenue to get your net return. Then you divide by your initial digital marketing spend before multiplying by 100.

So, if you invest $4 and make a revenue of $20, your net return is $16.

Then, you divide $16 by your initial marketing spend, which was $4. This gives a total of 4, which you will multiply by 100 to give you 400 – meaning your ROI is 400% (4:1).

In digital marketing, an ROI of 5:1 is a success, but most marketers usually aim for higher. Also, remember that each marketing channel has a different ROI ratio that you can use as a scale –email marketing (36:1), PPC (2:1), and SEO (22:1).

Now that we understand the basics of digital marketing ROI, let’s look at some digital marketing channel statistics, shall we?

 

Key Digital Marketing ROI Statistics

 
  1. Email marketing has the best-estimated ROI at 3,600%, followed by SEO with 2,200%.
  2. Digital marketers who calculate their ROI regularly are over 1.5 times more likely to get budget increases.
  3. Brands that use blogging as a digital marketing tool are 13 times more likely to get a good ROI.
  4. The median ROI on conversion rate optimization tools is over 200%, according to VentureBeat.
  5. Over 60% of Internet users are more likely to buy a product online after watching a product video.
  6. More than half of the companies globally are underspending with their digital marketing campaigns.
  7. Over 80% of Google’s revenue in 2021 came from Google Ads.

 

Email Marketing ROI Statistics

 
  1. Email marketing is 40% better at converting than social media platforms like Twitter, Instagram, and Facebook.
  2. According to HubSpot, email marketing is the most effective strategy, followed by paid search, organic search, and social media.
  3. For every $1 invested in email marketing, businesses get an estimated $42 in return, according to the Litmus report.
  4. Open rate, bounce rate, click-through rate, and unsubscribe rate are also important to email marketing campaign metrics.
  5. Keeping up with new email marketing trends can increase your ROI by over 100%.
  6. Businesses that use live content in their email marketing campaigns regularly report an ROI of 56:1.
  7. Smart Insights reports that email marketing has one of the highest ROIs, yielding $40 in revenue.
  8. Video content generates over 90% click-through rate for email marketing campaigns.
  9. Marketers reported over 700% revenue increase from making list building and email campaigns.
  10. According to HubSpot, testing emails leads to a higher return on investment.
  11. Statista reports that email marketing revenue is estimated to surpass 10 billion by the end of 2023.
  12. Subscriber breakdown, message personalization, and email automation campaigns are the most successful email marketing campaign strategies and can increase revenue by 760%
  13. According to the Litmus report, marketing teams of up to 5 3mployees see email ROI increase from 30:1 to 42:1.
  14. According to SaleCycle, 50% of users buy directly from marketing emails at least once a month.
  15. The average email click-through rate in 2021 was over 15%.
  16. The Litmus report showed that only 25% of companies believe they are adequately tracking their email ROI.
  17. Over 80% of marketers use email as their primary marketing channel for lead generation.
  18. Litmus reports that monthly sending up to 9 emails yields the highest email marketing ROI.
  19. “Welcome” emails have the highest open rate of over 80%, followed by “Back in Stock” malls.

 

Search Engine Optimization ROI Statistics

 
  1. SEO marketing has an estimated ROI ratio of 22:1.
  2. According to Smart Insights, SEO yields a revenue of $22.24 for every $1 spent, compared to $10.51 for mobile marketing.
  3. SEO blogging generates 1000% more traffic than social media marketing.
  4. Organic search has the highest ROI, bringing 300% more traffic than social media.
  5. An average SEO generates an ROI of over 200% — meaning for every $1 invested, yield a profit of over $2.
  6. Search engines drive more than 70% of all the traffic to B2B websites.
  7. The e-commerce and retail industry has the highest paid search visits.
  8. In the e-commerce PPC category, CTR lost 25% on desktop and 22% on mobile.
  9. The technology and B2B industry generate more revenue from organic search than other channels.
  10. Search engine optimization drives over ten times more clicks than pay-per-click advertising.
  11. The first Google organic search result has a click rate of 28.5%, followed by 15.7% for the second, 11% for the third, and 8% for the fourth.
  12. The real estate industry has the highest ROI from SEO, reaching over 1,300% in three years, followed by the medical device industry with 1,183%.
  13. Technical SEO ROI (keyword research, technical fixes, and title tag rewrites) is estimated to reach over 100% after six months.

 

Content Marketing ROI Statistics

 
  1. Content marketing is over 50% less expensive than other traditional marketing methods.
  2. Content marketing ROI is expected to reach 16% after 15 months.
  3. Over 60% of marketers use content marketing to improve their engagement.
  4. Dynamic content drives a digital marketing ROI of 44:1 compared to non-dynamic that drives 36:1.
  5. According to a Content Marketing Institute study, more than 70% of the top brands attribute their success to keeping an eye on their content marketing ROI.
  6. Dynamic video retargeting increases business ROI by over 40%.
  7. EyeView Digital reports that landing pages with integrated videos increase conversion rate by over 80%.
  8. Businesses that blog get over 100% more leads than those that don’t.
  9. B2B companies spend over 20% of their total marketing budget on content marketing, while successful ones spend close to 40%.
  10. Over 70% of content marketers reported that adding visuals increases their ROI.
  11. Marketers that focus on blogging are more likely to increase their ROI.
  12. Content marketing strategies generate more leads within the first three years than paid search strategies.

 

Pay-Per-Click Marketing ROI Statistics

 
  1. Businesses earn an average of $2 for every $1 spent on Google Ads.
  2. According to HubSpot, Facebook ads offer the highest ROI among all paid advertising paths.
  3. Ad retargeting can increase engagement rates by up to 400%.
  4. Paid advertisement has an estimated ROI of about 200%.
  5. PPC marketing generates more website visitors than SEO.
  6. Google owns over 90% of the global search market share as of 2021.
  7. Over 60% of customers click on PPC ads.
  8. Customers are over 50% more likely to purchase a product if you use retargeting.
  9. More than 50% of PPC clicks happen on mobile devices.
  10. 60% of mobile users click on a PPC ad at least four times a month.
  11. Combining display marketing campaigns and similar audiences can increase the conversion rate by over 40%.
  12. Small businesses invest over $9,000 in PPC marketing monthly.
  13. Over 9% of Facebook ads convert, making it the highest converting platform, compared to Google, which converts only 3.4%.
  14. More than 90% of marketers pay for search ads because they can increase brand awareness by 80%.
  15. The average cost per click is about $2.
  16. Less than 50% of brands think they need to spend more o their PPC campaigns.
  17. 80% of businesses concentrate only on Google Ads for POOC campaigns.
  18. The average Facebook cost per click is $1.72.
  19. LinkedIn has over 14% of the PPC market share, while Google’s share is 29%.
  20. According to Statista, over $220 billion would have been spent on social media ads.
  21. $1.49 is the highest average cost per click for Google’s Display Network, while $0.44 I the lowest.

 

Social Media Marketing ROI Statistics

 
  1. Social media marketing boasts of year-on-year growth of over 20%, making £137 billion, exceeding the $135 billion made by paid search.
  2. Over 70% of marketers claim that the ROI generated from influencer marketing is comparable with those gotten from other digital marketing channels.
  3. 80% of digital marketers use engagement as their primary success metric for social media marketing, while over 50% concentrate on website traffic.
  4. Social media surpassed websites as the top marketing channel in 2021.
  5. IBM got a 400% sales growth after including social selling programmes.

 

Wrapping Up

 

The statistics discussed show that digital marketing strategies yield a high investment return.

So, if you do not have an active digital marketing strategy for your business, you should start now.

Besides, the most important step is understanding where your audience is coming from so you can actively face that digital marketing channel(s).

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