YOU DO Your Marketing Wrong (and I’VE the info to Prove It)

David Linder

David Linder

MSc in Marketing from the University of Salford. Facebook Certified Planning Professional Facebook Certified Buying Professional
11 min read

marketing wrong

You know what’s interesting about having an ad agency?

It’s that you will get to speak to companies of most sizes and learn what can cause them to cultivate.

And I understand everything you are thinking… “Neil, shouldn’t you function as one telling companies how exactly to grow”?

Technically, yes. And I really do.

But simultaneously, I have to analyze just what a company did so far to create the best online marketing strategy for them.

And the sad the truth is, most marketers and companies are concentrating on the incorrect things. (I’ll review how to correct it later in this article.)

Over the final 7 months, I talked to 208 companies to discover where they’re spending their marketing efforts and what’s working. And on top of that, I acquired the approval to talk about their data with you. 🙂

I talked to companies generating from one million dollars in yearly revenue to $291 million.

I avoided speaking with companies significantly less than a million in revenue because a lot of them weren’t doing much marketing. And I avoided speaking with companies generating over a billion in revenue as you wouldn’t have the ability to replicate what they’re doing.

As for the, I talked to companies in the B2B space and also the B2C space. From ecommerce to to generate leads to software as something and everything in-between.

The first question I asked each one of these companies was:

Where can you spend your marketing dollars?

In essence, I acquired a failure of marketing spend by channel.

marketing spend by channel

It was obvious that a lot of companies spend their money on Google and Facebook ads.

Even should they didn’t share that data with me, it is possible to tell by simply considering Google and Facebook’s market cap. They’re worth $790 billion and $554 billion respectively due to paid ads.

Now let’s breakdown the info by company size.

Does marketing spend by channel change by company size?

When speaking with these businesses, I broke them into three groups.

The first being under 5 million in yearly revenue (with at the least $1 million each year). The next group was $5 million to $100 million, and the 3rd was over $100 million.

marketing spend by channel under 5 mil

marketing spend by channel 5 mil to 100 mil

marketing spend by channel over 100 mil

Do you visit a trend? Regardless of what size an organization is, nearly all their marketing budget is certainly going towards paid ads.

When I asked why the most typical responses were: it’s an easy task to scale and you will visit a direct ROI.

Now let’s consider the conversion rate per channel…

Conversion rate by channel

Before I give out conversion data, out from the 208 companies I interviewed, only 73 of these had the right tracking occur place for me personally to obtain accurate numbers.

If you need to succeed as a marketer, you have to set up your tracking correctly.

You don’t need to purchase an analytics solution, it is possible to just use Google Analytics and setup goal and conversion tracking. It’s much better than nothing.

Here may be the average conversion rate per channel:

conversion rate by channel

When considering the conversion data per channel, you’ll observe that I combined SEO and content marketing since they go together.

The more content marketing you do, generally, the higher you’ll do with regards to SEO.

The graph clearly shows paid ads convert better. Plus they usually do because you can control the landing page the traffic would go to. That’s why I really like pay for traffic!

Just look at these 2 pages below. They’re both on page 1 of Google for the word “auto insurance”.

This one takes the very best spot through paid ads:


And that one takes the very best organic listing:


It’s obvious why the paid one converts better. The look targets converting a user into a car insurance client. The organic listing (the next one) has a great deal of text because, minus the content, it wouldn’t rank on top of Google.

But considering pure conversions doesn’t tell the complete story because some marketing channels tend to be more expensive than others.

To get a concept of how effective a marketing channel is, you need to look at return on marketing spend.

return marketing spend

Return on marketing spend doesn’t indicate how profitable a channel is.

All it’s doing is showing the return predicated on marketing spend.

For example, although Facebook Ads don’t convert in addition to Google Ads, they’re much cheaper. Of the many companies we interviewed, typically, they generated $3.04 in revenue for each dollar they allocated to Facebook ads.

Again, this doesn’t mean profit. But typically, companies won’t keep extra cash unless it really is profitable.

What’s interesting concerning this data is that it shows 2 things:

  1. Facebook Ads create a better return on ad spend over Google Ads – this is practical because it’s much cheaper to market on Facebook also it hasn’t been with us so long as Google. Facebook Ads are quickly increasing in expense and as time passes the return on ad spend will most likely balance out with Google AdWords.
  2. SEO produces the very best returns – if you do create your conversion tracking correctly, SEO is quite effective as you can concentrate on increasing traffic from the proper keywords which are causing sales. The only real problem with SEO is that it’s a long-term play and you also won’t see results instantly.

So what’s wrong Neil?

Well, nothing yet, as you don’t have every one of the data yet. 🙂

Let’s look at some more trends and data point points…

The first is that paid ads are simply increasing in cost, therefore you can expect to cover more for them every year.

google revenue

Google generated $50 billion in 2012 and $109 billion in 2017. Yes, Google generates revenue beyond ads, but ads still constitute 90% of their income.

Second, nearly all users don’t select ads. But nonetheless, companies focus their marketing budgets on ads. Did you understand that only 2.6% of the searches result on a paid ad click?

That’s crazy!!!

Now, I’m not saying the rest of the searches cause clicks on organic listings.

34% of searches get no clicks because Google is solving plenty of search queries through their knowledge graph, this means a user won’t need to click. Plus, folks are simply clicking images, new stories, map listings, and other things that Google decides showing.

But still, a lot of the remaining clicks ‘re going towards the organic listings.

So why are you currently focusing all your efforts on paid ads?

Just consider it. You understand ad costs are likely to continue up since they have as time passes. And users would rather go through the organic listings, yet you still spend nearly all your allowance on paid ads.

And no, I’m not saying that you shouldn’t leverage paid ads. Heck, I still think you need to spend the biggest part of your marketing budget on paid ads because they’re simpler to scale, they convert better, and you’ll see an instantaneous return assuming guess what happens you do.

But what you ought to be doing is maxing out your SEO spend since it produces the very best return.

Here are 3 lessons for you personally with regards to your marketing efforts and where you ought to be investing your time and effort and money.

Lesson #1: Get proficient at SEO

You haven’t any choice!

You’re likely to battle to keep your organization profitable as your cost to get a customer will probably continually rise.

If you don’t trust me, just look at Google’s revenue graph that I shared above.

And learning on-page SEO and link building isn’t enough. To accomplish well nowadays you’ll need to incorporate social media marketing and content marketing.

But here’s the wonder: In the event that you obtain it right, your cost for SEO will continually decrease over time in comparison to just how much traffic and sales it’s driving.

Let’s look at

I’ve been doing SEO by myself site for several years now. So when After all SEO, I’m encompassing social media marketing, content marketing (including podcasts and videos), and crazy experiments.

Here’s my overall traffic excluding any cost per click kind of ads for 2015.

2015 traffic

A whopping 868,821 unique visitors. Throughout that year I spent $320,301 on SEO related efforts, excluding CPC ads.

And in 2016 I generated 3,448,929 unique visitors and I spent $1,430,133 on SEO related efforts, excluding CPC ads.

2016 traffic

Last however, not least, I generated 7,442,647 unique visitors in 2017 for a complete spend of $581,495 on SEO related efforts, excluding CPC ads.

2017 traffic

2018 isn’t over yet, but my costs are even likely to be less than 2017 and my traffic is higher.

Technically in the event that you include how much cash I’m shelling out for building out the Ubersuggest tool it’ll be higher… but that’s not necessarily considered SEO. 

Here’s a recap…
marketing spend neil patel

In 2015, SEO really was expensive for me personally when you consider it from the cost per visitor standpoint.

It got worse in 2016 because I must say i wished to grow faster, and in 2017, I began to go out of places to invest my money and naturally, my growth rate slowed up.

If you fast forward to today, my cost per visitor is drastically less than 2017. But still… I’m in a position to generate a B2B visitor for under 8 cents.

That’s ridiculously cheap considering a few of the terms I rank in serach engines for would cost me $11 a click.

In other words, SEO is quite expensive initially, nonetheless it generates among the highest ROI as you don’t need to keep extra cash at exactly the same pace to create the higher results.

With pay for traffic, in the event that you stop extra cash, your traffic and sales will minimize. And if you wish to scale fast, it will cost more per visitor rather than less per visitor like SEO.

If you are likely to max out your SEO efforts like I’m recommending, be sure you know very well what is causing an ROI if not you’ll spend your time and money acquiring traffic that won’t ever convert into sales.

Lesson #2: Ugly may be the new sexy

I asked each one of the 208 companies one particular question… which online marketing strategy has provided you together with your biggest profits on return?

Can you do you know what the solution was?

No, it wasn’t SEO.

It was CRO (conversion rate optimization)!

The second runner-up was SEO.

It is practical though.

If you curently have traffic, optimizing for conversions is among the simplest methods to grow… assuming it is possible to develop tests that perform much better than your control.

But here’s what’s interesting… significantly less than 1.7% of marketing spend was allocated towards CRO once you look at all companies all together.

I do realize why companies generating under $5 million per year in revenue don’t spend much on CRO since they don’t have just as much traffic.

But if your organization generates over $5 million per year you should think about allocating more of one’s budget towards CRO.

Yes, it’s much less sexy as SEO or social media marketing, but it works.

Lesson #3: Don’t forget lesson number 2

Most marketers and companies desire to be hip and cool. Put simply, they would like to spend more money and time on cool marketing channels.

When I asked each company, “which marketing channel can you feel gets the most potential”, listed below are the responses I acquired back:

marketing channel potential

What’s shocking concerning the chart above is that both B2B and B2C companies almost equally agreed Instagram and YouTube have probably the most potential.

Although Instagram is cool, ads are actually expensive and it’s hard to create a confident ROI on Instagram.

As for accumulating your Instagram reach organically, it’s definitely doable, but it’s hard to operate a vehicle traffic from Instagram to your internet site unless you are experiencing people swipe up.

As for YouTube, there’s huge potential inside it provided that marketers are prepared to create videos. YouTube SEO isn’t competitive and ads remain affordable.

But this is actually the thing, you can view from the info above that many of these large companies have already been built from traditional channels like paid ads and SEO.

Yes, these newer channels are sexy, but the old ones still work extremely well.

And this is actually the kicker… you haven’t even seen the utmost potential of both paid ads and SEO because most you haven’t fine-tuned them.

So why can you want to follow unknown channels that aren’t as proven once you haven’t made probably the most from the channels that work with your rivals?


Yes, I spend plenty of my money and time on podcasting and videos, and also leverage all the cool channels such as for example Facebook Watch, but I really do the fundamentals effectively.

If you would like to grow your traffic, leads, and sales, here’s the way you should prioritize your marketing budget:

  • Spend more on SEO – whether you’re small businesses or perhaps a large one, SEO will create a better roi than paid ads in the long run. Challenging companies I talked to, significantly less than 3% dominated the organic listings. But prior to going all in on SEO, you should setup tracking correctly which means you so aren’t wasting your time and effort driving traffic that doesn’t convert.
  • Keep your SEO budget reasonable – I’m sort of crazy, but most companies shouldn’t spend more when compared to a million on SEO. Yes, really big companies will… however when you’re maxing out your SEO budget it’s nowhere near as expensive as paid ads. For what the total amount will undoubtedly be, it ranges a whole lot according to the industry, how competitive it really is, and how fast you need to grow. So sadly I can’t offer you an answer on what much, nonetheless it should decrease as time passes.
  • Invest more in CRO – if your organization is generating at the very least 5 million dollars, you should look at spending additional money on CRO. I understand a lot of you don’t look after it in line with the data above (plus my CRO blogs aren’t as popular as my SEO ones), nonetheless it can help tremendously. It’ll permit you to save money on paid ads as costs rise and it’ll boost your overall profit percentage.
  • Avoid the sexy marketing channels – you shouldn’t consider copying me or others with regards to Facebook, YouTube, etc. in the event that you haven’t determined the fundamentals yet. Save money hard work on what’s proven.
  • When you’re small, test – a lot of you have businesses that generate significantly less than a million dollars per year in revenue. If that is you, don’t follow the formula above. If you are starting off, it is advisable to test four or five 5 marketing strategies out simultaneously. Spend hardly any money on all of them… whichever one produces the very best return, that’s what you ought to concentrate on in the short-run.

And in case you are among the rare marketers where you’ve mastered all the above strategies and already implemented them, the next phase for you would be to think beyond your box and become a little more creative.

Just like I’m doing by creating marketing tools.

So where are you currently spending your marketing dollars?

The post You Are DOING ALL YOUR Marketing Wrong (and I’VE the info to Prove It) appeared first on Neil Patel.

David Linder

David Linder

MSc in Marketing from the University of Salford. Facebook Certified Planning Professional Facebook Certified Buying Professional

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