Understanding return on investment (ROI) is crucial for Australian small and medium enterprises. It’s not just about spending less; it’s about maximising the value from every marketing dollar. Many businesses struggle to define what ‘good’ ROI actually looks like, so we’ve outlined some realistic benchmarks to target. Remember, these are guidelines – your ideal ROI will depend on your industry, business model, and specific campaigns.

Let’s be clear: ROI is calculated as (Net Profit / Cost of Investment) x 100. So, a $2,000 campaign generating $6,000 in profit has a 200% ROI. However, focusing solely on this single number can be misleading. We advocate for a layered approach, considering different marketing channels and their inherent ROI expectations.

• Search Engine Marketing (SEM/PPC): A healthy ROI here is generally between 200% and 400%. Given the competitive landscape, achieving consistently higher returns requires sophisticated keyword research, ad copy optimisation, and landing page improvements.
• Social Media Advertising: ROI on social media tends to be lower than SEM, typically ranging from 100% to 300%. This is because social is often focused on brand awareness and lead generation, which have longer sales cycles.
• Email Marketing: Email consistently delivers strong ROI, often exceeding 400%. A well-segmented list and compelling content are key. Don’t underestimate the power of automated email sequences.
• Content Marketing: Measuring content marketing ROI is more complex, but a good benchmark is a 100% to 200% return over 12-18 months. This considers the long-term value of organic traffic and lead nurturing.

It’s important to note that these benchmarks are averages. Some campaigns will outperform, others will underperform. The key is to consistently track your results, analyse what’s working, and refine your strategies. We’re seeing a trend towards more sophisticated attribution modelling, allowing businesses to accurately pinpoint which touchpoints contribute most to conversions. Investing in tools that provide this level of detail will be increasingly important heading into 2026 and beyond.

Don’t get bogged down in chasing unrealistic numbers. Focus on incremental improvements and a data-driven approach. To get started, we recommend conducting a thorough marketing audit to identify areas for optimisation and establish a baseline ROI for each of your key channels. This will provide a solid foundation for future growth.