Hubspot released a report today highlighting the shift in marketing budgets from outbound to inbound. A couple of their key findings include:
Companies that spend more than half their online budget on inbound efforts reported a cost per lead of $135 on average. Those who focus most of their budget on outbound marketing experience an average cost of $346.
The respondents rankings of the best value marketing techniques, from best value to worst, was:
- Social Media
- SEO (organic)
- Direct Mail
- PPC (paid search)
- Trade Shows
I was surprised to see PPC rank so poorly, but perhaps that`s a function of how much the price of Adwords has gone up over the past few years. On the other hand, I was in no way surprised by the poor ranking of trade shows.
Frankly, I also question whether social media campaigns or blogs are as cheap as people think. It`s hard to capture all of the costs associated with those efforts.
The report says that companies allocate 35% of their lead gen budget to inbound efforts, up from 32% last year. That includes 14% for SEO and 21% for Blogs and social media.
They also published a great chart that shows the lead to close ratio from various lead sources. Best to worst they were:
- SEO – 15%
- Direct traffic – 15%
- Referrals – 9%
- Paid search 7%
- Social media 4%
- Outbound efforts 2%
There are a lot of other interesting stats in the survey. http://www.hubspot.com/state-of-inbound-marketing/?source=20120229-email-l-state-of-inbound-mktg-uneng
As you read it you will be constantly reminded that Hubspot is in the inbound marketing business, especially when you read some of their derivative statistics. My favorite was that the gap between inbound and outbound marketing budgets has grown by 50%. Anyway, contrived statistics aside, it`s an interesting read.