Take three companies that thrive on catalog marketing, namely L.L. Bean, Lands' End, and Pottery Barn. Here is what SpyFu suggests these companies spend in online marketing, on an annual basis.
- Annual Average Spend Across These Brands = $10,201,000.
- Average Annual Clicks Generated From The Advertising = 12,015,000.
- Average Cost Per Click = $0.87.
- Annual Average Spend Across These Brands = $23,550,000.
- Average Annual Clicks Generated From The Advertising = 33,312,000.
- Average Cost Per Click = $0.78.
- Annual Average Spend Across These Brands = $40,654,000.
- Average Annual Clicks Generated From The Advertising = 63,483,000.
- Average Cost Per Click = $0.68.
I tried to pick companies that had annual traffic that was directionally similar. How the businesses use advertising to drive web traffic is very different. What this does show is that there may be a marketing digital divide. There may be a way for catalogers and retailers to migrate advertising online, and actually see better returns on investment.
As postage escalates, traditional catalogers have an opportunity to emulate the techniques that the folks at Zappos and Blue Nile use. Over the next five years, there is an opportunity to transition advertising strategy from print to online. There is an opportunity to cross over the marketing digital divide.
hanks for the tips. Hopefully these can help me create useful Internet advertising strategies. I can earn more profit and improve my business as I learn more online adcrtising tips.ReplyDelete
Hi Kevin --ReplyDelete
We've found little correlation between our client's actual PPC spend and the numbers reported by SpyFu. For the sites we checked, SpyFu was off, sometimes by an order of magnitude, for small ($10k/month), medium ($100k/month), and large ($500k/month) advertisers.
A neat idea, but needs better accuracy
Alan --- who would know better than you? Thanks for pointing out the error in the analysis.ReplyDelete
Now, what do you think about the hypothesis that some companies have figured out how to market online, and are way ahead of traditional marketers?