What Is The Most Profitable Advertising? [According To Data] -

Introduction:

Not all traffic sources are equal. For every dollar you invest in advertising, how much do you want to make? A lot of research has been put into this.

If you spent a dollar, would you be happy making $2.50?

You made money. You did not lose money. But how about $15? How about $25?

we’re breaking down the most profitable advertising methods, backed by research. You’ll discover which ad strategies deliver the highest return on investment (ROI)—so you can stop wasting money on ads that don’t work and start maximizing your profits.

Let’s dive in!

The One Thing:

Not all advertising is created equal. You could put all your money or effort into one traffic method and discover if you’ve would have put the same resources into another traffic you would have made more money.

Most people do not understand the economics or numbers of their business. This is why you have people promoting trendy marketing tactics like social media—because it’s popular. But have you done the research to determine if it’s the wisest use of your money?

Gary Keller of Keller Real Estate in his book “The One Thing” he asks what it the one thing that will make everything else you do irrelevant?’ In other words, what traffic source that will produce so much results that would make all the other traffic sources unnecessary?

We have laid out the research from different research firms that shows the average return for businesses on every dollar invested into advertising depending on the traffic source:

Some of you understand strategy that will get you far greater results than what these number show however, we are only going to look at averages.

Not only will we look at the average profits for every dollar invested, but we will also look at the advantages of certain traffic sources over others, For examples, some traffic sources may be more profitable however, some of these traffic sources may require of you to put more money upfront.

There are some traffic sources that may not be as profitable however, they require less money upfront but often times these traffic source are more popular.

I suggest that you look at traffic sources that are less popular but are just are profitable and at times even more profitable than traffic sources that require more money invested upfront.

Elon Musk’s Idiot Index

Love him or hate him, one of Elon Musk super powers is his ability to cut expenses. He has the ability to look at anywhere within his companies and cut expenses which why his companies are so profitable.

For example, Elon Musk has a concept that he calls the idiot index, where in building a rocket, he takes the component cost and the cost of the materials.

So, instead of buying the component from a suppler his engineers figure out how to build it in house.

(i.e, $1,000 component, but the cost of the raw material is $100 that = idiot index of 10 to 1)

SpaceX’s Raptor rockets cost $2,000,000, with the goal of using the idiot index to bring it down to $200,000. However, according to some leaked resources, Elon’s engineers were able to get it down to $250,000.

This To Consider Before Advertising:

The marketplace is filled with opportunities for you to advertising your products or services however, it is unlikely you will experience the results you are looking for first of all because of the high cost of advertising.

A recent report also indicates that 62% of businesses are not happy with the results they are getting from their Facebook ads because the costs of their ads are to expensive for them to be profitable.

An article from Business Insider shows that over the past couple of years, advertising costs are going up year over year. As of July 2021, five major social media platforms are showing a dramatic increase in advertising costs year-over-year.

Google and YouTube’s CPM is up by 108%
Facebook ad cost had an 89% increase, while the average CPM was $11
TikTok’s CPM went up by 92% increase
and Snapchat had “the lowest” 64% increase in CPM.

Online advertising has gotten really competitive because online advertising is based on a bidding process, so who ever is willing to pay the most gets the traffic, driving the prices up for everyone else.

So you really have to know what you are doing to run profitable ads. This has priced many smaller companies out of being able to advertise because they are spending more then they are making.

This has force many companies to look for alternative forms of traffic.

Avoid Lazy Marketing

Elon Musk’s companies have put in the work to find in efficiencies within the company to cut expenses.

When your competitors are spending $1 to make $2, you can use this knowledge to make $10, $15, or even $40.

I want to invite you to put in the work to cut advertising costs. however, with this research we have done most of the work for you.

Most companies, especially smaller companies use lazy marketing. They need customers, so they run some internet ads. You on the other hand, have the resources to find in efficiencies in your marketing.

For example, For example, Kyle Handy is a real estate agent who spent $22,000 on Google ads, which brought in $41,324 and a profit of $19,324. So, he brought in a return of almost 87%. However, Tony Kelso invested $50,626 in direct mail that brought in $543,390, just shy of 1,120%.

Don’t Discount Cold Marketing

The reason advertising is so expensive is because big media channels have built up an audience on their platforms and charge you a hefty fee to broadcast your message to their audience and depending on what is going on in the economy like you saw from the article from “Business Insider” these marketing companies end up raising prices and charging you more.

I don’t want you to discount cold marketing.

When you were new in business, you probably had little or no money. So, you did you own marketing networking, making phone calls, sending direct messages on social media and once you started making money you looked for ways to advertise.

You may have grown beyond cold marketing but you can still hire people or build a team of independent sales people who will do cold marketing in your behalf because in most cases, cold marketing is way more profitable than buying traffic.

Understanding Marketing

How well do you understand marketing? Most people understand what they do but they do not understand some of the other important areas of their business this is why strategy is so important.

If you do not have a large marketing budget it is not suggested that you sell an high priced product because the more expensive your product cost the more trust you have to develop before people will buy.

So, you have to advertise to a larger group of people over a longer period of time before anyone will buy with higher priced products.

Instead, it is suggested that you start off with a lower priced product because with a lower priced product you get immediate feedback if your marketing is working.

With higher priced products you may have to spend 10’s of 1,000’s of dollars before you will know if your marketing is working with lower priced products you have to put in more work but you get almost immediate feedback.

Speed Over Profitability

The beauty of the internet is that it is fast.

Some business value speed over profitability. For business that use what is known as a “loss leader” you may need to take the revenue from your “loss leaders” and re-invest it into advertising to make more money faster because of the speed you make money this may be more valuable to you than pyrotiablity.

Preview

Google / Yahoo Search: Brandcampdigital.com says: On average, Google Ad brings you a return of $2 for every $1 invested.
Display Ads: According to Webfx.com, for every $1 invested, display ads bring in a return of $2.
Social Media Paid Ads: Gitnux.org says social media advertising has an average return of $2.50 for every dollar invested.
Print Advertising (Newspapers, Magazines) Independent studies, such as those by Sheridan, Nielsen Catalina Solutions, and others, have found that magazine advertising yields an average ROI of $3.94 for every dollar spent.
Influencer Marketing: Storyclash.com says for every dollar invested into influencer marketing that will bring in a return of $5.78
SEO: TeraKeet estimates that the average ROI of SEO ranges from 550% to 1,220% or $6.50 on the low end to $13.20 for every dollar invested.
TV/ Radio: Statista says business that use TV advertising will earn an average return of $6.50 of every dollar invested.
Content Marketing: Sitecore states that across all industries, the average return on investment was 748%, assuming consistent weekly publication, or a return of $8.48.
Direct Mail / Flyers: ActiveRain shows a return of $10 for every one dollar invest.
Remarketing: Demandsage says say you will see a return of $10 for every dollar invested into remarking
Affiliate Marketing: AuthorityHacker.com states that brands using affiliate marketing get an average return on investment (ROI) of $15 for every dollar spent, equating to a 1400% return.
Cold Calling: According to Breakcold, for an investment of $5,000 in cold calling (including costs like personnel and software), businesses can potentially generate $76,800 in revenue. This translates to an ROI of approximately $15.36 for every $1 spent. breakcold.com
Cold Email: profitoutreach.app says studies have reported ROIs as high as $42 for every $1 spent, further highlighting the potential profitability of cold email strategies.
Joint Ventures: I saw a return of over 7,000%. In other words, I spent $200 and brought in $14,100 in just 6 hours, the next joint venture I did brought in a return of 21,000% in other words I saw a return of $211 for every dollar

Research

The feedback we have provided is from the latest research from multiple resources and research firm. The purpose of this research is to provide you with the information you need to make the most intelligent choices for your business marketing.

Search Marketing

Search: The advantage of search-based advertising is that traffic from search engines consists of an audience actively looking to buy, unlike most advertising, which is what is called interruption advertising, such as what happens on social media and TV.

As you watch TV or are browsing the internet you are introduced to different products. This is what is meant by interruption marketing.

Google AdWords:
- Idiot Index: High
- ROI: Brandcampdigital.com says: On average, Google Ad bring you a return of $2 for every $1 invested.
- Explanation: Google AdWords allows businesses to create and manage pay-per-click (PPC) ads on Google’s search engine and partner networks. While setting up ad campaigns is relatively user-friendly, achieving optimal results requires understanding keyword research, bidding strategies, and ad targeting
Yahoo/Bing Advertising:
- Idiot Index: High
- ROI: There isn’t a widely cited or easily accessible statistic for the average ROI specifically for Yahoo Search advertising, however, to repeat, again:Brandcampdigital.com says: On average, Google Ad bring you a return of $2 for every $1 invested.
- Explanation: Advertising on Yahoo and Bing involves similar principles to Google AdWords but may have differences in audience demographics and ad platform functionality.
  Advantages: Bing’s average CVR is slightly better than what we see on Google Ads. There are some advantages over Google ads with Bing and Yahoo for some companies, so we advise doing more research to see if Bing and/or Yahoo is right for you.
Display Ads:
- Idiot Index: High
- ROI: According to Webfx.com, for every $1 invested, display ads bring in a return of $2.
- Explanation: Display advertising involves placing visual ads (banner ads) on websites and mobile apps. While setup and targeting options are relatively simple, achieving high engagement and conversion rates may require experimentation and optimization.

Paid Social Media Ads:

There is a lot of hype regarding social media advertising because these channels have massive audiences. However, due to the sheer volume of messages bombarding us, many ads go unnoticed. Chet Holmes International posted a report in 2023 stating that in 2008, it took someone seeing our ads 5-8 times before remembering us. However, today, with the overwhelming amount of messages on social media, it takes someone seeing our ads 500 times before they remember us.

But on social media, that’s why we are often only charged per click. However, when the economy is good, due to the popularity of social media, the top social media companies raise their prices. According to an article from Business Insider in July 2021, five major social media platforms are showing a dramatic increase in advertising costs year-over-year.

Google and YouTube’s CPM increased by 108%.
Facebook ad costs had an 89% increase, while the average CPM was $11.
TikTok’s CPM went up by 92%.
Snapchat had “the lowest” increase in CPM at 64%.

According to an article at https://gitnux.org/social-media-marketing-roi-statistics/#:~:text=The%20average%20ROI%20for%20social,media%20conversion%20rate%20was%209.3%25, social media advertising has an average return of $2.50 for every dollar invested. However, this is why skill is important because I personally know people who earn a return of $4.80 for every dollar they spend on social media advertising.

If you have a large advertising budget, social media may give you the traffic you need. However, if you are a smaller company, social media is not the best option for you.

Facebook Advertising:
- Idiot Index: Moderate to High
- ROI: Social media advertising has an average return of $2.50 for every dollar invested.
- Explanation: Facebook’s advertising platform offers a wide range of targeting options and ad formats, making it powerful but potentially complex for beginners. However, its user-friendly interface and extensive resources make it accessible to marketers of varying skill levels.
Instagram Advertising:
- Idiot Index: Moderate to High
- ROI: Social media advertising has an average return of $2.50 for every dollar invested.
- Explanation: Instagram’s advertising platform integrates seamlessly with Facebook Ads Manager, offering similar targeting options and ad formats. While visually engaging, understanding Instagram’s audience and optimizing ad performance may require some expertise.
Twitter Advertising:
- Idiot Index: Moderate to High
- ROI: Social media advertising has an average return of $2.50 for every dollar invested.
- Explanation: Twitter’s advertising platform allows businesses to promote tweets, profiles, and trends to targeted audiences. While the setup is relatively straightforward, achieving success may require experimentation and familiarity with Twitter’s user behavior.
Pinterest Advertising:
- Idiot Index: Moderate to High
- ROI: Social media advertising has an average return of $2.50 for every dollar invested.
- Explanation: Pinterest’s advertising platform enables businesses to promote pins to users based on interests, keywords, and demographics. While visually-driven and intuitive, maximizing ROI may require understanding Pinterest’s unique audience and content preferences.
LinkedIn Advertising:
- Idiot Index: Moderate to High
- ROI: Social media advertising has an average return of $2.50 for every dollar invested.
- Explanation: LinkedIn’s advertising platform targets professionals and businesses, offering options for sponsored content, text ads, and sponsored InMail. While targeting options are robust, achieving optimal results may require knowledge of LinkedIn’s professional user behavior.
YouTube Advertising:
- Idiot Index: Moderate to High
- ROI: Social media advertising has an average return of $2.50 for every dollar invested.
- Explanation: YouTube advertising involves creating and optimizing video ads to reach targeted audiences. While the platform offers extensive reach and targeting options, producing compelling video content and analyzing performance metrics may require expertise.

Media, Influencer Marketing:
- Idiot Index: Moderate
- ROI: Influencer marketing has proven to be a highly effective strategy for many brands, offering substantial returns on investment (ROI). On average, businesses earn $5.78 for every $1 spent on influencer marketing. Notably, the top 13% of businesses achieve returns of $20 or more for each dollar invested.
  
  Additionally, a study by Tomoson found that businesses see an average ROI of $6.50 for every $1 spent on influencer marketing, highlighting the potential profitability of this marketing approach.
  
  There are reports that show influencer marketing brings an 11x return. However, influencermarketinghub.com suggests this is an overestimation. Nevertheless, influencer marketing still yields better returns than if you had invested the same money into social media.
  
  These statistics underscore the effectiveness of influencer marketing in driving revenue and enhancing brand visibility.
- Tips: Influencer marketing capitalizes on the relationships influencers have with their following. Similarly to word-of-mouth advertising, it seems to be very effective if you don’t focus on the size of the following but rather the relationship they have with their audience.
- Explanation: Content marketing encompasses various channels and formats, each with its own level of complexity. While creating content is accessible, developing a comprehensive content strategy and measuring effectiveness require expertise.
  sproutsocial.com
Print Advertising (Newspapers, Magazines, Flyers, Postcards):
- Idiot Index: Moderate
- ROI: Magazines deliver a higher ROI on advertising spending across all media, averaging a $3.94 return on every dollar spent. That’s 50% higher than all other categories. Nielsen also looked into this and found magazines had the highest aggregate ROI over TV, online, online video, and outdoor.
- Explanation: Print advertising involves placing ads in traditional print media. While the concept is familiar, achieving effective reach and ROI may require understanding audience demographics and publication circulation.
Broadcast Advertising (Radio and TV):
- Idiot Index: Moderate
- ROI: TV has a return of 300-500%, or a return of $3-5 for every dollar invested. However, iheartradio says it will bring you a return of $6 for every dollar you invest. TV and radio are out of the price range for many of us. So, if you are considering TV or radio, you should look at local options. There is new technology that makes it easier to target certain viewers, similar to what can be done through the internet.
- Stasita $6.5
- https://www.statista.com/statistics/629438/ad-spend-roi-medium-usa/
- https://barnraisersllc.com/2021/09/06/9-experts-explain-what-is-roi-of-tv-advertising/
- Explanation: Broadcast advertising involves airing commercials on radio and television. While reaching mass audiences, creating impactful ads and negotiating media buys may require expertise.
- Remarking
- Idiot Index: Low
- ROI: Remarketing campaigns, which target users who have previously interacted with your website or business, can offer a high return on investment (ROI), with a common benchmark being a 5:1 ratio (meaning $5 generated for every $1 spent).
  
  The ROI for remarketing campaigns can vary based on factors such as industry, audience, and campaign execution. However, several studies provide insights into its effectiveness however, Brands have reported up to a 161% increase in conversions after implementing retargeting strategies. constantcontact.com
  Explanation: Remarketing, also known as retargeting, is a digital advertising strategy that targets users who have previously interacted with your website or content. This approach often leads to higher engagement and conversion rates compared to standard display advertising.

SEO (Search Engine Optimization):
- Idiot Index: Low
- Cost: On average, SEO costs range from $100 to $250 per hour for US SEO agencies. Monthly SEO costs typically fall between $2,500 and $10,000 for US agencies, with the average SEO plan costing around $2,819 per month.
- ROI: TeraKeet estimates that the average ROI of SEO ranges from 550% to 1,220%.
- Explanation: SEO involves optimizing website content and structure to improve organic search engine rankings. While the concept is straightforward, implementing effective SEO strategies requires technical knowledge and ongoing monitoring and adjustments.
- Downside: SEO involves analyzing data to find the perfect balance of keywords that receive enough traffic and are not overly competitive. Using overly competitive keywords may lead to a loss of potential profits. It may also take months before you see any results. We suggest setting a budget of at least 12 months to see results.
Content Marketing (Blogging, Video Marketing, Podcasting, Organic Social Media, Influencer Marketing):
- Idiot Index: Low
- ROI: Sitecore states that across all industries, the average return on investment was 748%, assuming consistent weekly publication. For example, the Cleveland Clinic invested $100,000 for a team to create content that brought in a return of $790,000 in the first year however, overtime because of the amount of content you have out on the internet it continues to drive more and more traffic.

Explanation: Content marketing encompasses various channels and formats, each with its level of complexity. While creating content is accessible, developing a comprehensive content strategy and measuring effectiveness require expertise.
Top producing content are:

Direct Mail / Flyers
Idiot Index: 5 out of top 5
ROI: Postpilot, an automated postcard marketing company, reports a return of 400-700%. However, Tony Kelso saw a return of 1,120% by sending out a postcard. He employed a strategy called farming, marketing to the same neighborhoods every 2-4 weeks.

Explanation: Direct mail involves sending physical promotional materials via postal mail. While conceptually simple, achieving high response rates and ROI may require targeted segmentation and compelling creative.
Affiliate Marketing:
- Idiot Index: #4 out of top 5
- ROI: AuthorityHacker.com states that brands using affiliate marketing get an average return on investment (ROI) of $15 for every dollar spent, equating to a 1400% return.
- Explanation: Affiliate marketing involves partnering with affiliates to promote products or services in exchange for a commission. While setup is straightforward, managing affiliate relationships and tracking performance may require expertise.
Cold Calling:
- Idiot Index: #3 out of top 5
- ROI: ccording to Breakcold, for an investment of $5,000 in cold calling (including costs like personnel and software), businesses can potentially generate $76,800 in revenue. This translates to an ROI of approximately $15.36 for every $1 spent. breakcold.com.
  
  It’s important to note that these figures are averages, and actual results can vary based on the quality of leads, the skill of the sales team, and the specific industry. Regularly analyzing and optimizing your cold calling strategy is essential to maximize ROI.
- Tip: Based on my own research, cold calling has an ROI of 3,000%. Over a 6-8 hour period, you can generate 20-30 interested prospects per day and close 10-15 sales a week, generating $18,000 a month at just $300 per sale.
- Explanation: Cold calling involves reaching out to potential customers via phone. While conceptually simple, success depends on communication skills and overcoming objections.
Cold Emailing:
- Idiot Index: #2 out of top 5
- ROI: Cold emailing has an ROI of $36 for every $1 invested or 3,600%. However, Hubspot claims email has an ROI of 4,400%.
- Cost: Expenses include an autoresponder for sending out thousands of emails, domains for compliance, and a scrapper for finding email addresses to send.
- Explanation: Cold emailing is not spam. It involves reaching out to potential customers via email. While conceptually simple, success depends on communication skills and overcoming objections.
- Cold email marketing can yield substantial returns when executed effectively. On average, businesses earn $36 for every $1 spent on email marketing campaigns, equating to a 3,600% return on investment (ROI).
- revnew.comAdditionally, studies have reported ROIs as high as $42 for every $1 spent, further highlighting the potential profitability of cold email strategies.
- profitoutreach.app
- It’s important to note that these figures can vary based on factors such as industry, target audience, and the quality of the email content. Implementing best practices—like personalizing emails, segmenting your audience, and crafting compelling subject lines—can significantly enhance your campaign’s effectiveness and ROI.
Joint Ventures:
- Idiot Index: #1 out of top 5
- ROI: Returns can vary, but the first time I used a joint venture, I saw a return of over 7,000%. In other words, I spent $200 and brought in $14,100 in just 6 hours.
- Explanation: Joint ventures involve collaborating with other businesses to mutually market products or services. While conceptually simple, negotiating partnerships and ensuring alignment of goals can be complex, requiring tools such as cold calling, emails, direct mail, or others to find partners.

Conclusion

Most businesses are in the growth period, many businesses never progress beyond this point. The growth period is the phase of your business when you are getting customers and building a customer base.

For most business, especially to you lack capital you should be focusing your efforts using joint ventures.

Many of the world most successful billionaires, before they were millionaire and billionaires started off using joint ventures.

Love him, or hate him Bill Gates did nearly his first $10 Million dollars from joint ventures, Quest Nutrition went from $0 to a billion dollars in 3 years from joint ventures.

Again my first joint venture I saw a return of 7,000% and my next joint venture, my client saw a return of 21,000% so, to help you get started with this idea I’d like to promote your offer/product/business to my 150,000 customers and growing for FREE to help you gain more business.

Someone did the same favor for me once, and I’d like to do the same favor for you visit http://RodeoDriveGroup.com/Invite.