Call us Toll-Free:
1-800-218-1525
Live ChatEmail us

 Sponsors

Average ROI per Marketing Channel breakdown

Adrian Singer, 10-16-2008
SoftwareProjects is a full-service Internet Marketing & Web development firm, supporting 3,000 businesses in 14 countries.

With $600M of Internet Marketing budgets under management and $1 billion in orders going through our shopping cart system, we learned a thing or two about what type of marketing works best for each industry.

Over the last few days, we dug deep into our analytics to come up with aggregate data that would answer two very popular questions we get asked a lot -

1. "What type of ROI can I expect on my marketing dollars?"

2. "Which marketing channels should I target? How should I divide my budget across the different channels?"

When I volunteered for this project, I didn't realize the amount of work that would go into dissecting the analytics for about 2,400 companies we had data for.

We service a variety of different industries and every industry is unique. I quickly decided to focus on 4 popular industries and began crunching the numbers, with the help of an engineer.

Without further ado, I'm proud to present to you the results of our findings -

Distribution of Marketing budget by Industry



Average ROI by Industry



Notes:
* We highlighted the top channels for each industry in yellow.
* ROI of 100% is break-even. ROI of 3% means the company generated a 3% return on its marketing dollars, losing 97% of its investment.

Roger M, 10-16-2008
Very interesting findings! Thank you for putting this together

Jason, 10-16-2008
What type of businesses did you include under the financial industry?

Adrian Singer, 10-16-2008
Jason,

Under Financial we included our investment, loans and forex clients

Webmaster Guild, 10-16-2008
Help me understand something - if software companies for example get such a high roi on affiliates, why are they only spending 33% of their budget there? Why not spend more on affiliates?

Adrian Singer, 10-16-2008
Webmaster Guild -

You're thinking volume, not percentage of spend.

In the software industry, our clients pay out an average of 33% to their affiliates. They get the bulk of their volume from PPC, but affiliates offer the best return. While we're always on the lookout for more affiliates for our software clients, the affiliate commission structure remains the same.

Amanda, 11-15-2009
Hi Adrian,
I find your findings very interesting, since I am working on my thesis about ROI on blogging of global Fortune 500 companies. I noticed that some of your customers are in this list. Would you be allowed to share some of the findings of individual companies with me? Maybe only the percentage/amount for social media/blogging? Companies I am interested in are Microsoft, IBM, Toyota, Sony, American Express, and 3M. Another question: What companies would be in InfoMarketing?
Thanks
Amanda

Wayne, 11-17-2009
This article is very exciting and informative news all affiliates should take into consideration. I really appreciate this kind of data.

I did not see the time frame for these statistics...over what timing are these Returns acheived?

one month?
one year?

James, 03-08-2011
Does that mean...if you're a software company...and you spend $1.00 on paying an affiliate....you'll get $5.23 back from the sale of your product (assuming that if the cost of you're product is $1.00/month the customer would be around for 5.23 months)?

As opposed to if you spend $1.00 on Social Media, where you only get $0.08 back and therefor lose the $0.92?

If that is the case...why wouldn't companies just do all Affiliate Programs? Is there just not enough Affiliate avenues out there? The programs that they lose money on....do the continue those or do those get scrapped?

Thanks....great article. We're a company looking into SaaS solutions...assuming the software portion of this would apply to that as well?
Enjoyed this post?

Subscribe Now to receive new posts via Email as soon as they come out.

 Comments
Post your comments












Note: No link spamming! If your message contains link/s, it will NOT be published on the site before manually approved by one of our moderators.



About Us  |  Contact us  |  Privacy Policy  |  Terms & Conditions