Eager to learn more about the importance of marketing ROI (Return on Investment) and how to calculate it?
As digital marketing experts, you can rely on the professional team at Aqueous Digital to point you in the right direction.
For companies unsure where to start, we identify the various marketing channels that could help you to generate a more impressive marketing ROI.
Below, we’ll also explain which formula is used to calculate ROI and why including ROI in your marketing strategy is so important.
What marketing channels are the best for ROI?
As a marketer, you’ll be well aware of the wide range of both digital and physical marketing channels available to you, but which one will generate the best ROI?
Whether your key aim is to build brand awareness, advertise products, or boost your conversion rate, here are some of the most effective initiatives for increasing your department’s profitability.
Despite being more of a longer-term strategy, SEO cannot be underestimated in its ability to boost your marketing ROI.
Given this process involves the continual optimisation of a website’s technical information and content, it can make a massive difference to the website’s visibility in the SERPs (search engine result pages).
Ideal for boosting website exposure, traffic, and leads, SEO is often a key pillar in the marketing strategy of every business.
As the name suggests, PPC is where the advertiser pays a fee each time an online user clicks on one of their ads for their products or services.
One of the biggest benefits of this approach is the degree of control businesses have over their messaging and targeting.
Using platforms like Google Ads, they can target advertisements based on certain demographics such as their audience’s geographical location, age, gender, interests, and more.
Subsequently, PPC campaigns often produce high conversion rates and significant ROIs as they’re more likely to be seen by the right people.
Email marketing
Not a day goes by for most online shoppers where they won’t receive a marketing email, and why? Because it’s still such an effective digital marketing channel.
Based on figures published by Statista from a 2021 UK marketing survey, for every £1 spent on email marketing, the return was roughly £38.33.
This is no small part thanks to the segmenting of audiences, which allows businesses to send more tailored campaigns.
From abandoned basket emails to personalised discounts and event invitations, this type of marketing can result in more traffic, increased customer retention, and a higher conversion rate.
Content marketing
Content marketing involves the creation and distribution business-relevant articles, videos, podcasts that are designed to attract and engage a company’s target audience, but how effective is it?
According to Forbes Advisor findings, a substantial 89 per cent of marketers reported that content marketing surpassed the ROI generated from more traditional marketing methods.
It adds that the average content marketing ROI equates to an impressive 177 per cent profit.
Social media marketing
From TikTok and LinkedIn to Instagram and X (formerly known as Twitter), there exists many social media platforms that can be utilised in a company’s marketing strategy.
While these platforms can be used to promote products and services or to develop a brand’s online presence, they’re often most effective when it comes to the creation of viral content.
This results in high engagement and typically a substantial social media marketing ROI.
Why ROI is important in a marketing strategy
Put simply, a high ROI means your marketing methods are generating more money than you’re spending on creating them – something every business wants!
Generally, a good marketing ROI is one that meets the 5:1 ratio, i.e. for every £1 that is spent, £5 is generated.
A good ROI is therefore essential for any company’s marketing department.
Without a good ROI, the business may decide to divert more of their budget away from marketing and towards other avenues that could be more beneficial to their bottom line.
In a marketing strategy, there’s often many marketing channels that are being utilised at once, so it’s important to have a way of determining which activities have been the most successful.
This is where learning how to calculate the ROI for each channel becomes so vital.
How to calculate ROI
In simple terms, you can calculate ROI by dividing the profit earned on an investment (also known as the net return) by its cost.
As ROI is expressed as a percentage, it’s important to then multiply this figure by 100.
This will allow you to compare the ROI of one marketing channel or campaign against the ROI of other avenues, highlighting which investments have been the most profitable.
Explore your digital marketing options with Aqueous Digital
Keen to learn more about which digital marketing avenues could be the most beneficial for your business?
Please feel free to contact the marketing and SEO professionals at Aqueous Digital today.
Specialising in paid search, organic SEO, and reputation management for high-net-worth individuals, we’ve helped businesses across the UK to improve their marketing ROI.
To book your free, no-obligation consultation with our helpful team, simply give us a call on 0800 285 1424.
Alternatively, you can email us at hello@aqueous-digital.co.uk or reach out via any one of our social media accounts!
