Due to the vast growth of the internet, marketing has evolved widely. People no longer spend hours on TV, listen to the radio or wait for the weekly newspaper as much and be dictated by what the media has to offer of advertisements with outbound marketing; it's easier now for them to ditch unwanted advertisements and seek out what they're interested in and what's relevant to them online by themselves on their own time. On the other hand, inbound marketing, promoting through blogs, podcasts, SEO, social media marketing, and such, with quality content relevant and helpful to the customer, seems more efficient and effective in light of this marketing evolution. Inbound marketing has proven to be a more suitable channel for several reasons; lower costs per lead, more leads, and higher conversion rates.
Cost per Lead
The cost per lead using inbound marketing is less than that of outbound marketing. For example, delivering quality content to prospects concerned with it using a blog rather than having to display ads on billboards to the public, hoping for their attention, definitely leaves more qualified candidates knocking on your door and reduced costs per "fit" lead. According to Mashable, inbound marketing costs 62% less per lead than traditional outbound marketing, which leads to higher ROIs. Volpe from HubSpot also reiterates, "The inbound leads are 50% cheaper and close 100% more than paid leads."
Lead Generation
Inbound marketing has proven to be the more effective regarding lead generation. HubSpot says inbound practices produce 54% more leads than traditional outbound practices. For instance, the popularity of social media channels has grown drastically; therefore, tackling these channels would generate higher numbers of leaders than a billboard ad for the broader range of prospects you're reaching. Social Media Examiner claims that 83% of marketers indicate that social media is important for their business.
Conversion Rates
Let's talk conversion rates! According to HupSpot's State of Inbound 2014 Report, Inbound marketers double the average site conversion rate, from 6% to 12%. Inbound marketing leaves room for testing and measuring the effectiveness of any chosen inbound channel and how it's approached. Therefore, one has a chance of actually optimizing their conversion rates.
Generate More Leads and Conversions and Minimize Costs
Customers are blocking out intrusive ads' noise and looking for what appeals to them. It is all about making your content something your customers are seeking and for your marketing to be relevant and helpful to your customer, not interruptive. Using inbound marketing tactics draws in the user, leading them to become leads, more likely to engage your product to others, and convert at a lower cost than outbound marketing.