As a business owner or manager, you are constantly deciding where to invest and allocate marketing resources. Before making your next marketing investment or decision, read HubSpots’ “The State of Inbound Marketing” research report. The report demonstrates the effectiveness of using blogs, social media and search engines for influencing business targets on a purchasing decision. Conversely, the traditional techniques of direct mail, telemarketing and trade shows are becoming less effective.
“The State of Inbound Marketing” surveyed 644 professional businesses’ marketing strategies. Each company recorded spending and distribution of marketing expenses in order to calculate the cost per lead. In this study, “inbound marketing” consisted of blogs, social media, SEO (Search Engine Optimization) and PPC (Pay Per Click). “Outbound marketing” consisted of traditional marketing tactics, such as telemarketing, trade shows and direct mail. To understand inbound and outbound marketing more thoroughly, read Brian Halligan’s blog, “Inbound Marketing vs. Outbound Marketing.”
In the research report, outbound marketing amounted to an average cost of $373 per lead, while inbound marketing came to $143 per lead— an astonishing 62% lower cost per lead than outbound marketing. Looking at the graph below (courtesy of HubSpot.com), blogs were reported as the least expensive strategy, while trade shows and other traditional marketing tactics, along with PPC, ranked significantly lower. Although PPC had a lower cost per than telemarketing and direct mail, all other outbound approaches were significantly higher.
For greater customer acquisition and cost effectiveness, social media, blogs and search engine optimization are obviously successful factors for businesses. These techniques should be considered and implemented in all marketing budgets. Have blogs, social media and SEO been factors in your business’ success?