You are doing your marketing incorrectly (and I have the data to prove it)

You are doing your marketing incorrectly (and I have the data to prove it)

  Wrong Marketing

You know what's interesting about having an advertising agency?

You can talk to companies of all sizes and learn what drives them to grow.

And I know what you think … "Neil, should not you be the one who tells businesses how to cultivate"?

Technically, yes. And Me

But at the same time, I have to analyze what a company has done up to now to find the best marketing strategy for it.

And the sad reality is that most traders and companies are focusing on the wrong things. (I'll come back on how to solve this problem later in this post.)

In the last 7 months, I've talked to 208 companies to find out where they were spending their marketing efforts and what was working. And most importantly, I had the permission to share their data with you.

I talked to companies generating between $ 1 million in annual revenue and $ 291 million.

I avoided talking to businesses with less than a million revenues because most did not do a lot of marketing. And I've avoided talking to companies generating more than one billion in revenue because you would not be able to replicate what they do.

As for the industry, I have discussed with B2B and B2C space companies. From e-commerce to software generation as a service and everything in between.

The first question I asked each of these companies was:

Where do you spend your marketing budget? breakdown of marketing expenses by channel.

 Canal Marketing Spending

It was obvious that most businesses were spending their money on Google and Facebook ads.

Even if they did not share this data with me, you can see it by simply looking at the market capitalization of Google and Facebook. They are worth $ 790 billion and $ 554 billion respectively because of the paid ads.

Now, divide the data by company size.

Are channel marketing expenditures changing according to the size of the business? divided them into three groups.

The first figure was less than $ 5 million a year (with a minimum of $ 1 million a year). The second group was $ 5 to $ 100 million and the third was over $ 100 million.

 Channel marketing expenditures of less than 5 million

<img src = "" alt = " Channel Marketing Expenditures greater than 100 Million

Do You See a Trend? Whatever the size of a company, most of its marketing budget is devoted to paid advertisements.

When j & # I asked why the most common answers were: they are easy to adapt and you can see a direct return on investment.

look at the conversion rate per channel …

Conversion rate per channel [19659026Beforesharingwithyoutheconversiondataoutofthe208companiesIinterviewedonly73ofthemhadgoodnumberstracking

If you want to succeed as a marketer, you must set up your tracking correctly.

You do not have not to pay for an analytics solution, you can just use Google Analytics and set up a goal and a conversion. followed. It's better than nothing.

Here is the average conversion rate per channel:

 Conversion rate per channel

When you examine the conversion data per channel, you will notice that I've combined the SEO and content marketing because they go hand in hand.

The more content marketing you do, the more things you do about SEO.

The chart clearly shows that paying ads are getting better. And they usually do it because you can control the landing page of the traffic. That's why I love paid advertising!

Just look at these 2 pages below. They are both on page 1 of Google for the term "auto insurance".

This one takes the head of the classification thanks to the paying advertisements:


]  on the national scale

It is obvious that the paid person converts better . The design focuses on converting a user into an auto insurance client. The organic list (the second one) contains tons of text because, without the content, it would not rank high on Google.

But looking at pure conversion rates does not tell the whole story, because some marketing channels are more expensive.

To get an idea of ​​the effectiveness of a marketing channel, one must examine the performance of marketing expenses.


All it does, is display the return based on marketing expenses.

For example, although Facebook ads are not converted as well as Google ads, they are much cheaper. Of all the companies we interviewed, they generated an average of $ 3.04 in revenue for every dollar spent on Facebook ads.

Again, that does not mean a profit. But generally, companies will not continue to spend money unless they are profitable.

What's interesting about these data is that they show two things:

  1. That makes sense because it's a lot cheaper to advertise on Facebook and it did not exist that long than Google. The cost of Facebook ads is growing rapidly and, over time, the return on ad spend will likely be different with Google AdWords.
  2. SEO Produces the Best Returns – Assuming Conversion Tracking is Correct You can focus on increasing traffic from the right keywords that drive sales. The only problem with SEO is that it's a long-term game and you will not see the results instantly.

So what's wrong Neil?

Well, nothing yet, because you do not have all the data yet. 1965

Let's look at some other trends and data points …

First, the price of paid ads is increasing, which means you can expect to pay more each year.

 google revenue

Google generated $ 50 billion in 2012 and $ 109 billion in 2017. Yes, Google generates revenue outside ads, but ads still account for 90% of their revenue.

Users do not click on the ads. However, companies are focusing their marketing budgets on ads. Did you know that only 2.6% of searches resulted in a click on a paid ad?

It's crazy !!!

19659003] 34% of searches do not make clicks because Google resolves many queries via their knowledge graph, which means that a user will not have to click. Plus, people click on images, new stories, map lists, and everything Google decides to show.

But the majority of the remaining clicks go to organic listings.

So, why do you focus all your efforts on paid ads?

Think about it. You know that advertising costs will continue to increase because they have finished with time. And users prefer to click organic listings, but you still spend most of your budget on paid ads.

And no, I'm not saying you should not use paid ads. Heck, I still think you should spend most of your marketing budget on paid ads because they are easier to adapt, they convert better and you will see an instant return assuming you know what you are doing. ] But what you should do is optimize your SEO expenses because they generate the best return.

Here are three lessons for your marketing efforts and your investments in time and money.

Lesson # 1: Be Good in SEO

You Have No Choice!

You're going to have a hard time making your business profitable while your customer acquisition costs keep growing

If you do not believe me, just look at the revenue graph from Google that I shared above.

And learning SEO and creating links on the page is not enough. To do well these days, you will need to integrate social media marketing and content marketing.

But here's the beauty: if you do it right, your SEO cost will decrease continuously in relation to traffic and sales

Let's look at

I have been doing SEO on my own site for many years. And when I talk about SEO, I'm talking about social media marketing, content marketing (including podcasts and videos), and crazy experiences.

Here is my overall traffic excluding any kind of cost per click for 2015

] 2015 traffic ” />

A total of 868,821 unique visitors. During this year, I spent $ 320,301 for SEO, excluding CPC ads.

In 2016, I generated 3,448,929 unique visitors and $ 1,430,133 for SEO, with the exception of CPC ads. ” />

Finally, I generated 7,442,647 unique visitors in 2017, for a total of $ 581,495 in SEO efforts, excluding CPC ads.

 Traffic 2017

2018 is not finished yet, but my costs are still

Technically, if you include the amount I spend to build the Ubersuggest tool, it will be higher … but this is not really considered SEO.

Here's a recap …
  marketing spending neil patel

In 2015, SEO was very expensive for me, from the perspective of cost per visitor.

I really wanted to progress faster and in 2017, I started running out of space to spend my money and, of course, my growth rate slowed down.

If you are accelerating today, my cost per visitor is considerably lower than 2017. But still … I am able to generate a B2B visitor for less than 8 cents.

This is ridiculously cheap considering some of the terms for which I rank would cost $ 11 a click.

In other words, SEO is very expensive at first, but it generates one of the best ROIs, because you do not have to keep spending money at the same rate to generate the best results.

Spend money, your traffic and your sales will stop. And if you want to evolve quickly, it tends to cost more per visitor instead of less per visitor, as for SEO.

If you want to optimize your SEO efforts as I recommend, make sure you know what is causing an ROI or you will lose time and money acquiring traffic that will never be converted into sales.

Lesson # 2: Ugly is the new sexy

I asked a simple question to each of the 208 companies. Can you guess what was the answer?

No, it was not natural referencing.

That was the conversion rate

The second was SEO


If you already have traffic, conversion optimization is one of the easiest ways to progress. with tests that work better than your control.

But here's what's interesting … less than 1.7% of marketing

I understand that companies that generate less than $ 5 million a year in turnover do not spend a lot in CRO because they do not have as much traffic. [19659003] But if your business generates more than $ 5 million a year, you should consider allocating more of your budget to the ORC.

Yes, it's not as sexy as SEO or Social Media, ] Lesson # 3: Do not Forget Lesson # 2

Most Marketers and Marketers companies want to be cool and cool. In other words, they want to spend more time and money on cool marketing channels.

When I asked each company "which marketing channel has the most potential," here are the answers:

 potential of marketing channels

What is shocking in the graph here Above, it is that B2B and B2C companies are almost equally in agreement. Instagram and YouTube have the most potential. a positive return on investment on Instagram.

Regarding the organic creation of your Instagram space, it is quite feasible, but it is difficult to generate Instagram traffic to your site. huge potential as traders are ready to create videos. SEO on YouTube is not competitive and ads remain affordable.

But here is the result, you can see from the data above that most of these large companies are made up of traditional channels such as paid ads and SEO. Yes, these new channels are sexy, but the old ones still work extremely well .

And here is the kicker … you have not even seen the maximum potential of paid ads and SEO because you have not refined them.

So, why would you look for unknown channels that are not as proven when you have not made the most of the channels that work for your competitors?


Yes, I spend a lot of my time and money on podcasting and videos, and I enjoy all the cool channels like Facebook Watch, .

If you want to increase your traffic, your prospects and your sales, here's how to set your marketing budget priorities:

  • Spend more on SEO – whether you're a small or a large company, the SEO will generate a better return on investment than paid ads in the long run. With all the companies I talked to, less than 3% dominated organic ads. But before embarking on SEO, you need to configure the tracking correctly so you do not waste your time generating traffic that does not convert .
  • Keep Your SEO Budget Reasonable – I'm a bit crazy, but most companies should never spend more than a million in SEO. Yes, big companies are going … but when you maximize your SEO budget, they are far from being as expensive as paid ads. As far as the amount is concerned, it varies a lot depending on the sector, its competitiveness and its speed of growth. Unfortunately, I can not tell you how much, but it should decrease over time.
  • Invest More in the CRO – If your business generates at least $ 5 million, you should consider spending more money on the CRO. I know that many of you do not care about it based on the data above (besides, my blog posts are not as popular as those of SEO), but it will help you a lot. This will allow you to spend more on paid ads as costs increase and this will increase your overall profit margin.
  • Avoid sexy marketing channels – you should not consider copying me or others on Facebook, YouTube, etc. if you have not yet understood the basics. Spend more time and energy on what has been proven.
  • When you are small, test – many of you have businesses that generate less than a million dollars a year in income. If it is you, do not follow the formula above. When you start, it is best to test 4 or 5 marketing strategies at the same time. Spend very little money on each of them … the one that produces the best return, on which you should focus in the short term .

And if you are one of the few marketers in which you have mastered all the above strategies and have already implemented them, the next step for you is to think outside the box and be a little more creative.

Just as I do by creating marketing tools.

Where do you spend your marketing dollars?

The message you chose wrong about your marketing (and I have the data to prove it) appeared first on Neil Patel.

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