Over the past few weeks I’ve been reminding myself of the words of the late, great George Harrison, “all things must pass”. But while we’re hoping the stock market obeys this universal law and we wait for the economy to re-set (and this one could take a while), we will continue to advertise online. Now more than ever this will require obsessive focus on ROI. Here are a few tactics that savvy marketers can rely on more than a government bailout…
(1) Look to new channels for customer acquisition. If your search campaign is reaching the point of diminishing returns, consider advertising to prospective customers where they spend most of their time: the inbox. Did you know that 59% of all online advertising inventory is in or around the inbox? Email advertising is a scalable, cost-effective way to generate incremental customers, and many companies offer it on a CPA basis.
(2) Pay more attention to your existing customers. You know the equation, retaining a customer is a fraction of the cost of acquiring one. eCRM is one of the most effective ways to boost lifetime customer value, and right now consumers are looking for special offers, discounts and other promotions from brands they trust. And, some companies will even help you re-activate your dormant customer file on a pay-for-performance basis.
(3) Stop wasting impressions. The technology exists today that allows advertisers to target their ideal customer with accuracy and precision. Database-driven media companies, in particular, can serve your ads to consumers based on demographics that have been verified by 3rd party sources. Some self-reported and panel data only provides an aggregate view of an audience which can result in wasted ad impressions.
These economic circumstances offer great opportunities. A recent Forrester Research/Shop.org study actually found that 35 percent of online retailers expect their online business to perform better than expected in the next 12 months, while another third (33 percent) anticipate their online business will perform the same as expected. Some of the most successful online marketers capitalized on the last downturn by being agile, creative, and efficient. Consumers will continue to buy, you just may need to look in some new places to find them, and continue to be shrewd with your media spend when you do.
