Is Online Marketing Profitable?

How Profitable Is Online Marketing? 

How profitable is online marketing? That’s a question we all ask ourselves. In this article, we’ll discuss the cost of getting new customers, Personalization, and Return on Investment. So how do you determine if online marketing is profitable for your business? Read on to find out!… And if you’re not sure, here are a few tips for success: 

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Pay Per Click (PPC) 

There are several benefits of retargeting your existing customers. Retargeting is an excellent way to recapture interested customers. Research shows that the likelihood of repeat purchases is higher than finding new customers. PPC advertising allows you to recapture existing customers and have higher conversions than if you had to find new ones. Here are four reasons why retargeting can be profitable. They all boil down to smart data-driven decision-making. 

Hiring a professional team is one of the best ways to ensure your ads get the right attention. While it may increase costs, it can also prevent costly mistakes. It’s important to find a PPC agency that has a proven track record and works within your budget. The right PPC firm can turn your online business around. Here are some of the advantages of hiring a PPC agency. 

Cost of getting new customers 

While a new customer is expensive, it can help you save money in the long run. On average, companies spend five times as much as they do to retain existing customers. By improving customer retention by 5%, they can increase profits by 25-95%. Compared to acquiring new customers, selling to existing customers has a success rate of 60-70%, while only two percent of businesses sell to new customers. In addition, loyal customers are seven times more likely to try new products or services than to switch companies. 

Considering customer lifetime value, companies should spend at least 33 percent of their LTV on new customers. On average, a customer spends $150 over six years. Using a data analyst can calculate this number. Once you’ve done that, you’ll have a better idea of how much you need to spend on new customers. If your customer lifetime value is greater than this, you’re spending more on marketing than on retaining current ones. 


Companies that make more than $1 billion a year are increasingly prioritizing personalization, and this trend is catching on among smaller brands. It’s one of the most effective ways to convert visitors into buyers, and it’s especially beneficial for small brands with small databases. According to the Algolia 2021 Ecommerce Search Trends report, only 20% of retailers are ready for personalized experiences. But personalization isn’t a panacea. With the right tools and data, you can customize your customer’s experience across multiple channels. And it’s not just about revenue. Personalization can also increase your customer retention, which is another key benefit. 

A successful personalization strategy can be implemented on a variety of platforms, including landing pages, automated emails, and remarketing ads. Personalization can help you improve your marketing results by tailoring content to your customers’ preferences, habits, and purchasing decisions. In addition to improving customer experience, this strategy also lowers acquisition costs and improves efficiency. Using data-driven personalization makes online marketing profitable, and you’ll be happier customers who stay loyal to your brand. 

Return on investment 

While many aspects of online marketing are difficult to measure, defining the Return on Investment of a campaign is an important part of measuring its effectiveness. Marketing ROI is the dollar amount of incremental sales and wins generated from an advertisement. While it is important to determine the exact dollar amount spent, it is equally important to identify the optimum timing to attribute your return. Whether your campaign results in incremental sales or wins depends on a variety of factors. 

First, a digital marketing campaign is designed to generate leads for the sales team. To measure return on investment, multiply the total cost of advertising by the number of leads generated. But don’t confuse cost per lead with cost per closed lead. Lastly, track your lead close rate. If your marketing campaign is not yielding a high enough conversion rate, it is likely not producing the results you need. Ideally, your marketing effort should produce a three-fold ROI or more.