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Why Use Inbound Marketing? - Benefits & ROI

Instructor: Danielle Reed

Danielle works in digital marketing and advertising. She holds a bachelor's degree in English and an MBA.

In this lesson, we will cover the reasoning for using inbound marketing, specifically through exploring its benefits. We also cover the average return on investment of inbound marketing.

What is Inbound Marketing?

Imagine running a small business for yourself. Every day, the sales you make and the expenses you generate must balance out in your favor, or else your bank account is directly impacted. The pressure of generating sales and bringing in new business is relieved via inbound marketing.

By definition inbound marketing is the strategy of attracting leads to you through the generation and distribution of content creation. This could include everything from content, social media, search engine optimization, and more. So, why should a company use inbound marketing?

According to Forrester Research, the average firm is expected to allocate an average of 41% of their marketing budget to online media with search engine marketing holding the largest share of the money spent. Companies are trying to grab the attention of a reader to drive a sale. They catch the eye of a reader by:

  • Powering creativity among companies
  • Genuinely connecting with the customer base
  • Meeting the reader during their normal routine

Benefits of Inbound Marketing

Consumers are tired of interruption marketing like sales calls, pop-up ads, paid email lists, and paid reviews. Inbound marketing brings benefits to service and product-based businesses that include effectiveness, immediacy, building long-lasting content, reaching new markets and audiences, better analytics, and encouraging innovation. Let's look at how.

  • Cost Effectiveness: With inbound marketing, a business with a limited marketing budget is able to run campaigns that reach the right audience. Rather than reaching out to as many people as possible, companies get to pay for reaching the right people. According to Digital Marketing Pro, inbound leads cost about one-third the amount of a traditional lead.
  • Immediacy: It has never been easier to get information - every answer is available at a click of a button. This can be used to the advantage of a business, where a quick search can lead to your website even if the person is across the world.
  • Building Long-Lasting Content: Think of your favorite viral videos. Some of your favorite laughs have come from videos that are now years old! This also works for marketing content. One reason inbound marketing helps a business grow is because the content never goes away. Consistent and good content gets searched, found, and used online!
  • Reaching New Markets and Audiences: Through the internet, the average person sitting at home with a great idea and a sewing machine can transform his life! You no longer need to sell to neighbors and friends; legitimate leads are available from people you would never encounter otherwise. Inbound marketing allows a business to reach an audience, whether it is a new audience or a new market entirely.
  • Better Analytics for Companies: For organizations, it is easier to track exact numbers for specific campaigns. With the click of a button, a boosted post on Facebook can reach thousands of users, and after a few minutes, detailed analytics of the post's reach are available. Traditional advertising did not offer anywhere near this level of detail and companies often inflated their numbers concerning reach to boost sales.
  • Encouraging Innovation: There is a considerable amount of innovation going on in sectors like technology, business, medicine, and even marketing. Inbound marketing generates new types of content, all to the benefit of the reader.

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