Marketers will often describe digital marketing as the art of storytelling. While this is true to a certain extent, the avenue where the story is told, the audience, and — most importantly — the return on investment are often the main guiding factors, more so than the story.
In other words, brands aim to maximize impact and reach their ideal audience with efficient budget allocation. So, how do you go about doing that, and which are the highest ROI marketing channels your business should invest in? We asked our trusted marketing experts to shed more light on this topic.
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Highest ROI Digital Marketing Channels
When looking at digital marketing ROI averages, a 5:1 ratio is considered to be good, meaning that you get $5 on every invested dollar, with SEO and email marketing boasting the best averages (22:1 or 2,200% and 36:1 or 3,600%, respectively).
Defining the most profitable digital channels and calculating your return on investment isn’t as black and white as it may seem at first. Each channel offers tangible benefits, but not all will suit every business.
Without further ado, let’s delve into the highest ROI digital marketing channels you should consider.
- Social media
- Email marketing
- Search engine optimization
- Video marketing
- Omnichannel marketing
- Influencer marketing
- Podcast marketing
Social Media
Some may still think about social channels as mere tools for raising brand awareness, but they can be highly profitable with the right approach. For instance, LinkedIn can be an extremely valuable platform for B2B companies, especially for lead generation.
Internal growth data from LinkedIn shows that ads on the platform are perceived as 92% more professional, 59% more respectable, 50% higher in quality, and 74% more intelligent, which can bring a 10-15% boost in short-term sales.
Other social channels can also yield stellar returns. Twenty-five percent of marketers we consulted believe that Instagram is the highest ROI social channel, followed by Facebook (23%), YouTube (14%), and last, but not least, TikTok (12%).
Instagram is continuously improving its eCommerce features, while Facebook has been the go-to place for community building and paid social campaigns both for B2C and B2B companies thanks to the platform’s features and precise targeting options.
YouTube, on the other hand, dominates the landscape in video marketing, with 90% of video marketers using the platform. Additionally, 90% of marketers say that video marketing provides an excellent ROI, so using YouTube makes sense, either for long-form content, Shorts, or Reels.
Marsha Forrester, Director of Marketing and Operations at Downstreet Digital, highlights the potential of TikTok and short-form video.
“Short-form video content is highly engaging, easily shareable, and has a broad reach, especially among younger audiences. The algorithms of these platforms favor content that quickly captures attention, leading to higher visibility and organic reach.”
Clinton Jiggetts, Founder of Best Fit Digital, agrees and adds that businesses can leverage the platform by creating authentic, creative, and trend-based content that resonates with their target demographic.
Mridul Jain, Owner of Aspire Catalyst, shares a similar view, stating that short-form video can be highly effective on all platforms, including YouTube, Instagram, and Facebook.
Email Marketing
Email marketing isn’t just sending out newsletters. It can also involve sending personalized marketing messages, reminders about abandoned carts, and time-sensitive announcements such as holiday discounts, and more. Email marketing usually offers a tremendous ROI, yielding between $36 to $40 on every dollar spent.
Maciej Fita, Founder of Brandignity, believes that email marketing is still the leading channel in terms of ROI.
“I still feel like email is one of the most powerful channels out there. If you have a good-sized list, email platforms are fairly inexpensive for the amount of clicks you can get to your website. Planning your emails strategically can easily be one of the most powerful marketing channels in your toolbox.”
You can also use artificial intelligence to enhance your email marketing efforts, boosting efficiency and returns even further.
Search Engine Optimization
Around 93% of experiences start on search engines, making SEO a worthwhile investment. Recent data suggests that 29% of marketers say organic search offers the best ROI across all marketing channels, with the average ROI of a comprehensive SEO campaign being around 748% or an average of $7.48 on every dollar. However, as with anything, this will be different for every industry.
Why do marketers think that SEO is among the best channels for ROI when email marketing outperforms it nearly five times? Forrester has the answer: “Organic search remains one of the most cost-effective channels for driving traffic and leads. Investing in SEO ensures long-term visibility without ongoing ad spend.”
Jacob Arsh, Business Development Manager at Onyx8 Digital Agency, agrees with Forrester, but also points out that SEO is not for everyone.
“One of the marketing channels that can deliver the highest ROI is the SEO channel. However, it is not for any business since it requires quite a lot of time, patience, and effort.”
He also mentions that focusing on a single channel is important but it’s only a part of the bigger picture.
“Marketing channels are connected. You can’t implement PPC without having great content (marketing) on the landing page. Or implement a content strategy without SEO. It will simply be a waste of budget.”
While SEO is a worthwhile marketing option, it requires the touches of a seasoned expert who has the experience and the knowledge to set up and execute these often complex and technically challenging campaigns. So, if you are opting to venture into the world of SEO, look for the help of a trusted agency.
Video Marketing
We’ve already talked about these and their use on social platforms, as short-form videos have over 30% return on investment, and videos shorter than 90 seconds retain 50% of viewers. TikTok is an excellent example of just how powerful short videos are. The platform has over 1.5 billion monthly active users, with some of the most-watched videos generating over 2 billion views.
While short-form videos are making huge waves in digital marketing, Salman Shahid, CEO of OXO Packaging, says that long-form videos, and content, in general, provide immense value too.
"Long-form content is making a comeback. As Dan Holt puts it, boring long-form is never fun, but engaging long-form is the right thing for both B2B and B2C brands."
He adds that long-form content adds originality to any brand’s online presence.
"As more and more social accounts like the same with goofy videos and meme content, brands that showcase behind-the-scenes and own their people will have a better digital footprint. Breaking free from the loop of social channels is important as brands that rely on socials can’t become lovemark.”
With the help of a creative video marketing agency, you can create highly engaging video content, regardless of form and niche.
Omnichannel Marketing
As Arsh points out, marketing is connected. This is why most marketers and brands opt for omnichannel marketing, integrating several channels to create consistent, branded user experiences.
But how effective is omnichannel marketing? It can yield a 90% retention rate for eCommerce stores and omnichannel shoppers demonstrate a 30% higher lifetime value. And why is it effective? It ensures brand consistency across your digital presence and merges the best of what every digital touchpoint has to offer, potentially even going beyond that.
For instance, SMS marketing is an essential pillar of a well-rounded omnichannel strategy, and Lily Benton, Director at Lotiva, says that text messages have become a potent means to reach audiences.
"In recent years, SMS marketing has emerged as a powerful tool with impressive ROI. With an open rate of around 98%, it’s one of the most direct ways to reach consumers. Businesses can use SMS to send targeted promotions, reminders, or personalized offers. The key is keeping messages concise and ensuring they add value. It’s important to remember that consumers appreciate relevancy and hate spam, so offering a clear opt-out option is crucial to maintaining trust.”
Influencer Marketing
As Forrester points out, a solid influencer marketing strategy and the help of the right experts can help you raise brand awareness and encourage purchases.
“Niche platforms (like Twitch for gamers or Clubhouse for professionals) have highly engaged communities. Influencer marketing on these platforms can offer authentic connections with specific people. To make it work, identify influencers who are genuinely aligned with your brand values. Focus on long-term partnerships rather than one-off promotions to build trust and credibility. Provide influencers with creative freedom to authentically promote your brand.”
The typical ROI of influencer marketing is $5.78 for every dollar spent, but in some industries, the average may be as high as 20 on the dollar. Without a doubt, influencer marketing can be a valuable marketing channel to instantly boost brand reach, raise awareness, and build trust. When partnering with the right influencer, every business and organization can benefit from these campaigns, even nonprofit entities.
Podcast Marketing
With an average ROI of around $4.9, podcast advertising is another high-value channel worth looking into. Data shows that nearly 68% of listeners will contemplate a product or service if they hear about it during a podcast.
The highly targeted nature of these ads can reach well-segmented and qualified leads, resulting in better returns on investment. However, it's worth noting that partnering with the right podcast production company is crucial, just like finding an influencer whose vision and content align with your brand.
Martha Forrester agrees that podcasts have become a powerful marketing tool for brands.
“Podcasts have a dedicated and loyal audience base. Ads are often integrated seamlessly into content, making them less intrusive and more effective. The intimate nature of podcasts fosters trust, leading to higher conversion rates.”
Benton also supports the claims behind podcasts, noting that they create a more intimate relationship between brands, show hosts, and listeners.
“Podcast advertising is on the rise, with more people tuning in during their commutes or workouts. The personal nature of host-read ads can create a strong connection with listeners, making it a highly effective channel for brands looking to build trust."
Maximizing Digital Marketing Channel Potential
Just because a channel can be effective doesn’t mean it will. Your customers won’t buy your products just because they saw one ad. Sales happen mostly because brands utilize the help of experts and develop the right marketing strategy that combines several high-ROI marketing channels.
Here’s how to maximize their potential.
- Focus on synergy
- Retain existing customers
- Optimize your targeting
- Make data-driven decisions
- Opt for expert help
Focus on Synergy
Mike Smid, CMO of Gigaleads, says it’s all about creating synergy across the board.
“Creating synergy between different marketing channels is all about integrating efforts to ensure each channel supports the other. For instance, at Gigaleads, we’ve found that using data from our social media campaigns to refine our email marketing strategies creates a feedback loop that continuously improves performance. By aligning messaging and branding across all channels — whether it’s social media, email, or even direct outreach — we create a cohesive narrative that amplifies our clients’ brand presence.”
Retain Existing Customers
When talking about ROI, most business owners will think about reaching new leads and turning them into customers. However, as Benton mentions, keeping your existing customer base happy can be equally rewarding in terms of returns.
“It’s vital to focus on customer retention rather than just acquisition. Studies show that it costs five times more to attract a new customer than to keep an existing one. By investing in loyalty programs, personalized follow-ups, or exclusive offers, businesses can encourage repeat purchases and increase customer lifetime value without significantly increasing their marketing spend.”
Optimize Your Targeting
How can your campaigns be effective if you are targeting everybody, nobody, or simply the wrong audience? As Laura Farkas, CMO of LMNts Marketing, points out, pinpointing your ideal users can help you maintain or improve ROI even on saturated channels.
“Narrowing down lead targeting and adding further lead qualification to the system can enhance results. Continuous lead quality monitoring should be one of the main priorities of brands. Looking at the gaps in funnels where leads can drop out is another great way of maximizing ROI on ad budgets.”
Joey DiGangi, COO of WD Strategies, seconds this, saying that brands should leverage first-party data to market to people without relying on cookie profiles or IP addresses.
“Pairing the data with social retargeting, effective SEO, SEM, or even print, can have a positive effect on creating a cohesive marketing strategy that performs well across all channels.”
Make Data-Driven Decisions
Digital marketing analytics measure the performance of your campaigns, help you get a better idea of your ROI, and enable you to adjust your campaigns, either in real-time or in future campaigns.
Forester says that data-driven marketing allows for precise targeting, personalized messaging, and efficient allocation of resources. By analyzing performance metrics, brands can refine their strategies to maximize ROI.
Lastly, she also points out that data can be used to identify your best-performing pieces of content and use them to maximize the value of your existing assets, allowing you to reach different audiences across various channels without the need for constant content creation, while maximizing ROI in the process.
Opt for Expert Help
Optimizing ROI on your digital channel takes experience, knowledge, and sometimes, even technical know-how. Based on the channel you want to focus on, you can choose from a wide range of trusted digital marketers who can help you grow your business.
Wrapping Up High-ROI Digital Marketing Channels
Determining your highest ROI channel depends on numerous factors. One channel might work for one brand and prove to be of little use to another.
And it’s not just about your company — your users with their preferences, likes, and behavior is the other side of the equation. As such, you need to conduct the necessary research to uncover which channels and content formats can bring the best returns for your specific needs.
Highest Digital Marketing ROI Channels FAQs
1. Is SEO worth it?
While SEO is a complex marketing strategy that’s also time-consuming, it can outperform most other channels and approaches. How? Once you’ve become visible to your target audience, maintaining and boosting that visibility won’t necessarily require further significant investments on your end.
2. Are social media channels only good for raising brain awareness?
Social channels used to be perceived as tools for helping you boost awareness, but as platforms introduced new features, most of them have become fully-fledged marketing funnels that can help you generate leads and increase conversions and direct purchases.
3. Is video marketing expensive?
High-quality video production can be costly, however, leveraging the power of video isn’t necessarily an expensive venture. With the right ideas and execution, even hand-held live streams and simple, spontaneous branded short videos can drive engagement and yield results.
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