Which Online Marketing Strategy Has the Best ROI?
When it comes down to it, there's one factor that matters more than any other when it comes to an online marketing campaign: your return on investment (ROI). If you can maximize your ROI, and sustain it over the long term, your marketing campaign, by definition, will be an unquestionable success.
So which online marketing strategies tend to have the highest ROI?
Before I can hope to answer this question in any objective or meaningful way, I have to clear up a few initial points and establish a foundation for my reasoning:
- ROI is somewhat tricky to nail down. Even with all the data in front of you, it's difficult to pin down a precise measure of ROI. This is partly due to the fact that many forms of "return" are imprecise, such as brand reputation, credibility, trust, and visibility.
- Time and money are both investments. If ROI were a simple matter of "money in, money out," it'd be much easier to estimate and compare. However, some strategies require more of a time investment than a money investment, which adds another difficult-to-measure variable to the process.
- Long-term ROI is different than short-term ROI. And one isn't objectively better than the other. Over the course of five years, a long-term investment will pay off far better than a short-term one, but sometimes you need results to start showing immediately.
- Marketing strategies depend on execution. Let's say there's a marketing strategy that has a tremendously high average ROI, but you have no idea what you're doing; would you expect to see that high of a return in your campaign? The success of a marketing strategy depends on its execution.
- Every business is different. Every industry, every demographic, and every individual brand has unique factors that affect how effective different marketing strategies will be. It's impossible to account for all these factors.
With those considerations out of the way, let's take a look at some of the most popular marketing strategies around today and how they compare with each other.
Most business owners who have tried it will tell you that paid advertising offers a good ROI. However, there are a few considering factors that complicate paid advertising, making it difficult to pin down an objective conclusion about the strategy. For example, the price per click on a Google search ad can vary wildly depending on what industry you're in, someti