Measuring ROI and understanding B2B marketing benchmarks are some of the biggest challenges we've heard from marketers looking to setup marketing goals and optimize budgets.
For example, do you know much every dollar you spend in marketing brings back in return? Or what the average CPA (cost per action) is for your B2B Facebook Ads when setting your ad budgets?
To help you create more effective B2B KPIs, and see how your marketing metrics stack against others in the B2B industry, we've gathered a list of key marketing benchmarks across top B2B channels.
Where possible, we've highlighted B2B ROI metrics 📊. So if it's your first time trying out a new channel without historical data, you'll have better guidelines for setting up realistic KPIs and ensuring you're not burning through your investments.
Below you'll find:
In simple terms, your marketing ROI (Return on Investment) tells you how much revenue you made compared to how much marketing budget you spent.
For example, Neil Patel has seen a 13.11x ROI on Google Ads. This means for every $1 he spends on Google Ads, he gets $13.11 back in revenue.
The most basic formula used for calculating marketing ROI is:
ROI = (Returns - Marketing Investment) / Marketing Investment
How it's calculated varies business to business, since returns can be tracked using different metrics, such as: Total Revenue, Gross Profit, Net Profit, or Customer Lifetime Value.
To more accurately calculate ROI for your business, it's also good idea to include all your costs. From tools & outsourcing, overhead costs, operating expenses, to any other associated costs. Your ROI formula would then be similar to this:
ROI = (Returns - Marketing Investment - Incremental expenses) / Marketing Investment
As you start to test and determine your marketing benchmarks across paid and non-paid channels, it's important to know which channels are actually generating positive ROI.
This is where having an attribution model comes in for the save 🦸🏻♂️. It lets you automatically identify which acquisition channels led to conversions, track ROI across any channel, and see which ones are most effective - more on this at the end 😉.
We'll breakdown the average marketing metrics for 3 major B2B acquisition channels: Online Advertising (Facebook Ads & Google Ads), Email Marketing, and Content Marketing (blogs & webinars).
All 3 are part of the top channels in a CMI study on how B2B Marketers distribute their content:
When it comes to ads benchmarks, remember to use the following figures as a guidance 📖. The success of an ad can vary greatly based on multiple factors, such as your ad copy, creative, targeting, and placements.
So as with all marketing efforts, it's always best to setup your own A/B tests so you have a baseline to compare and optimize against 💪.
For B2B Ads focused on the bottom of the marketing funnel, we'll recap average industry metrics for Website Conversion ads.
🔥 Pro tip: Get inspired by 15 compelling B2B Facebook Ads examples for lead generation.
Google has 4 major networks: Search 🔎, Display 📜, Shopping 🛍, and Video 📺. We'll focus on average metrics for PPC Ads on Search, as it's the most long standing one used with success.
Data sources: WordStream (report from January 2018 using 14.2K of their US clients across industries, who were advertising on Google’s Search networks). Google Economic Impact (report with industry ROI).
Note: conversion rate (CVR) and cost per action (CPA) aren't standardized, as you can setup any conversion event (e.g. signup) and action (e.g. subscribe), though CPA is typically defined as cost per acquiring a new customer. So again, use these as guiding numbers 👨🏫.
🔥 Pro tip: Get our guide for 11 B2B Google Ads examples that convert.
Email marketing continues to be one of the most effective B2B strategies, with 87% of B2B content marketers using email to educate and nurture their audience 💌.
We'll focus on email benchmarks for 1st party lists (e.g. lists you've gotten through your own lead generation campaigns or customers who signed up), but have included a few stats and tips for cold emails.
Just like with ads, keep in mind that email metrics will vary widely based on your goals (acquisition, product usage, etc.) as well as the subject line, content, CTA, audience, and links included 📊.
🔥 Pro tips:
Content Marketing Institute found that 91% of marketers use content marketing to attract and retain audiences, and drive profitable actions. We'll take a look at 2 channels our B2B customers invest in most: blogs and webinars.
Over 55% of marketers prioritize blog content as their top inbound strategy (ourselves included!). Companies like Drift make this one of their biggest investments, and have grown their blog from 200 to 27,000 visitors in only 8 months 🚀.
A blog can fit in any part of a visitor's journey, from discovering your business to converting. And the best part is that your articles have long lasting value 💎, some of our highest traffic comes from blog posts we published over a year ago 🙆♂️.
🔥 Pro tips:
Just like their cousin emails who've been around for a long time, webinars still prove effective in the B2B world. 73% of B2B marketers and sales leaders say webinars are the best way to generate high-quality leads 👥.
🔥 Pro tips:
As you can imagine, each marketing channel and ads platform has different metrics available. Which can lead to scattered and non-standardized data, and result in a lot messy and manual work to calculate your returns.
That's why we launched Smart Attribution to help you connect, automate, and make sense of all your marketing data 🎉. You can:
To get started:
In the end, there's no right answer when it comes down to understanding what a good Marketing ROI is.
It all depends on your marketing goals, audiences, and channels used, and varies based on how you calculate your returns and costs, timeframe, attribution model, and more.
As you setup your own marketing KPIs and test campaigns across different channels, now you have some guidelines for comparing your efforts to other B2B companies and the overall industry 💪.
Finally, to really scale your marketing activities, you can get deeper analytics on your customer journeys and compare ROI in every channel with tools like Smart Attribution 🚀.
Want to track your B2B marketing ROI? Sign up for a free 7-day PixelMe trial 🎉. Or send us a message from the blue chat icon in the bottom right-hand corner! 💬
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