The Results Are In: Where Marketers are Spending $$ in a Down Economy
MarketingSherpa's Marketing and the Economy Survey shows an overall picture that offline marketing is definitely on the decline and online marketing is on the rise. I want to delve a little deeper into the online marketing trend.
Let's look at the top three increasing online marketing items:
The survey shows that 48% of marketers are adding dollars to their Web 2.0 (social network marketing) budgets. How is that measurable, and what do you get from it? There are many levels of social networking, and each will have its own goal. Check out The 6 Spheres of Social Media Marketing. Here's an example of what happened when our SEO team created a StumbleUpon post for one of our golf clients. On the day of the post, traffic increased 48% above the average daily visits. These visitors had a 45% lower bounce rate than the site as a whole. So not only does the post help our SEO efforts, the post boosted the site activity, and started building relationships with these new visitors.
Paid search has proven to have one of the highest return on ad spend (ROAS) - IF it is done right. We have seen great success stories from our clients with 500%-3500% ROAS. We are also now seeing some interesting trends on how paid search campaigns can help with natural search conversions due to the synergistic effect paid and natural search have together. As my colleague, Brian Carter, mentions in a recent blog post, "When you show both, you make a bigger impact on the buyer, which increases attention and trust, thereby increasing traffic, conversions, conversion rate, decreasing cost per conversion, increasing ROI."
Emailing to House Lists
This option has just as high a percentage increase as did Web 2.0. From my perspective, this is hands down, one of the best returns on spend out there. Judging from the 48% of marketing putting more money into this venue, clearly I'm not alone in this opinion. We have seen time and time again clients getting 1000% or more return on spend. If you train your subscribers well, don't abuse your list, and send quality messages, you won't be disappointed with this decision.
That being said, not all online marketing is increasing.
Emailing to Rented Lists
NOT ALL EMAIL IS CREATED EQUAL! This is why I am not surprised to see 43% of marketers reducing spend here. With more and more companies implementing web analytics, I believe it has shown that many rented lists do not perform as well as we would like. Why spend the money here, when you know your existing list gets a much better response?
Online Display Advertising
43% of survey respondents are reducing spend here as well. Why? In general, display ads are more costly than other makreting media, and that drives up the cost per acquisition, and brings down the return on spend.
Every company has a different marketing budget and different goals. Maybe you are still adamant about sending email through rented lists. I'm not going to stop you, but I am going to insist that you measure your results. Look at your conversion rates, cost per lead, return on spend. The numbers will speak for themselves. You be the judge of your marketing effors to see which onces give you the best bang for your buck, and then spend more on those efforts.
- Friday Fuel: MOAR MOBILE. And More. Fri, December 19, 2014
- The Hotel SERP Real Estate Game Mon, December 08, 2014
- The 2014 Top 5 “Must Have” Techie Gift Guide Tue, December 02, 2014
- Creating Dynamite Emails Mon, November 24, 2014
- Amazon’s OTA, New Hilton & Marriott Fees, and Airbnb Protection Program Fri, November 21, 2014
- Internet Marketing Summit 2014 Key Takeaways Fri, November 14, 2014
- Google Removes Local Carousel For Hotels Fri, November 14, 2014
- Friday Fuel: Tinder for Hotels, Nano-Robot Scallops, and Virtual Balconies at Sea Fri, November 07, 2014
- Myrtle Beach Industry Overview: September 2014 Thu, October 30, 2014
- Friday Fuel - The Do’s and Don’ts of 2015, Hilton Rebrands Itself, TripAdvisor & Moon Travel Fri, October 24, 2014
- Is your Resort Talking to its Guests? Mon, October 13, 2014
- Friday Fuel – Hilton’s Big Sale, Last Minute Bookings, Hotel Reviews & Google News Fri, October 10, 2014
- Friday Fuel: Marriot Gets in Trouble & Mobile Payments Gain Momentum Fri, October 03, 2014
- Around the Analytics World September Wrap-up Tue, September 30, 2014
- Device Types And How They Are Being Used Mon, September 29, 2014
- Friday Fuel: Silence is a luxury, another OTA hits the scene, and Microsoft shows its dongle. Fri, September 26, 2014
- Friday Fuel - Google Knows What You’re Watching, Data Breaches, And The Tiniest Hotels Ever Fri, September 19, 2014
- Myrtle Beach Industry Overview: August 2014 Thu, September 18, 2014