A new report suggests that inbound marketing efforts are more cost-effective than outbound campaigns.

According to the State of Inbound Marketing Report from Hubspot, marketers who spend more than 50 per cent of their lead generation budget on inbound marketing channels have substantially lower cost per sales lead than those who spend half or more of their budgets on outbound marketing channels.

Firms consistently ranked inbound marketing channels as the most cost-effective platform when asked to rank each lead generation category as “below average cost,” “near average cost,” or “above average cost”.

The survey found that social media platforms and blogs have the highest “below average cost” rankings for 2009 and 2010. The figure stood at 55 per cent as a combined category in 2009 and 63 per cent separately in 2010.

Inbound marketing is also growing in popularity – the channel grew from 38 per cent of the overall lead generation budget to 39 per cent between 2009 and 2010. Meanwhile, outbound marketing reduced from 29 per cent to 24 per cent.

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