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Cost and Benefits: Online versus Offline

Thursday, March 12th, 2009
Posted in Uncategorized at 4:33 pm by admin

Have you ever heard an interesting advertisement on television or radio in passing and later searched for more information regarding the product advertised? You are not alone. With the growth of the Internet, consumers are becoming more interactive and instead of waiting for the information to come to them, they are going out and searching for it.

 

Many people listen to the radio in the background at work, where they most likely have an Internet connection. If they hear an interesting advert and want more information, chances are good they will go directly to the URL, if it is given in the ad and they can remember it. If not, chances are they will Google either the brand name or key-phrases mentioned in the advertisement.

 

Say for example, you hear or see an advert for dog food that promises to give your best friend healthy gums and teeth. All you remember from the advertisement is “dog food,” “healthy gums” and “healthy teeth.” These are the key-phrases you will use when searching for the brand. This particular example is from a print advertisement from a consumer magazine and the brand in question is not ranking for the mentioned key-phrases. Since you, the customer, can’t remember the brand name, you are going to select the first relevant search result. Consequently, the brand that paid for that TV, radio or print advert is losing potential business to competitors that have well optimised sites.

 

Many marketers argue they don’t have budget to include online marketing in their current strategy, yet they are advertising extensively on television, radio and print media. Many marketers perceive online marketing to be exceptionally expensive. To put the cost of online versus offline media into perspective, we did some research. Based on the advertising rates from leading consumer magazines and newspapers in South Africa, we estimated the following figures for print media:

  • A full-page, full-colour advertisement in a consumer magazine will cost you approximately R56 000
  • A double page spread, full-colour advertisement in a consumer magazine will cost you approximately R111 000
  • The average cost of a full-page, full-colour advertisement in one of South Africa’s leading newspapers will cost you approximately R155 000
  • A half-page, full-colour advertisement in one of the same newspapers, will cost approximately R77 000

 

The estimated cost for online marketing is as follows: a comprehensive, twelve-month Search Engine Optimisation (SEO) campaign can cost you the same as approximately three of the full-page full-colour print adverts mentioned above. SEO is a good basis on which to build your online marketing campaign. An aggressive twelve-month online marketing campaign consisting of SEO, Pay per Click (PPC) advertising and online PR will cost you approximately the same as eight full-page full-colour advertisements as mentioned above.

 

At first glance this figure might seem expensive, but based on the fact that it stretches for a full year, needless to say the returns it wields; the investment is well worth it. One of the key benefits to online media is that it is completely measurable, unlike traditional media. You are able to track and measure virtually everything from numbers of visitors, key demographics to key-phrases used to find you in search engines using analytics programmes. Most importantly you can measure the efficacy by measuring conversions. By analysing this information, you can improve the targeting, messaging and reach of your company’s website and thereby increase return on investment.

 

We are not suggesting marketers utilise only online channels. Traditional channels still have their place. Traditional media like radio, television, print and billboards are great for creating brand awareness and it has been said that offline media can stimulate online searches. However, marketers should not under-estimate the influence and reach of the Internet.

 

The latest South African statistics suggest that Internet usage grew by 12.5% during 2008.  People are spending more time online, hours spent on the Internet increased by 45% between 2007 and 2008, from 2.6 million hours to 3.8 million hours.  Furthermore, it is not only the younger demographic using the World Wide Web to find information, the Internet usage of the 50+ demographic increased the most during 2008 by 0.6%.

 

What does this mean for business owners and marketers? It is important to know that the Internet has changed the way consumers buy and adapt your strategy accordingly. The influence of the Internet cannot be ignored. No longer can we only talk about above-the-line and below-the-line advertising when deciding on the promotional mix. It is important to include an online marketing campaign as part of your overall marketing strategy to create a through-the-line campaign.  This approach ensures brand awareness across all channels and maximum return on investment.

 

When adopting the through-the-line approach, it is important to close the loop. As mentioned earlier, a potential client may remember certain key-phrases from your television, radio or print advertisement and this is what they will use to search for you. Therefore it is important to ensure that the message is consistent throughout all channels.

 

By working closely with your online marketing consultant, you can ensure that your website is optimised for those specific key-phrases and that you rank well for them. A strongly optimised website will ensure that consumers who are actively searching with key-phrases relevant to your website will find you, and not your competitors.


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Google Chrome & Twitter Ads

Tuesday, September 2nd, 2008
Posted in Uncategorized at 12:10 pm by AlterSage

Google Chrome

The WWW is alight with mentions of Google Chrome.

Announced yesterday, there has been some speculation that this would eventually be created. That time is now.

Google Chrome beta will launch tomorrow. (link not active yet)

The Google press release mentioned a demo with Q&A session, or go check out the Chrome Introduction webcast here. Available at approximately 7pm 9pm tonight South Africa time.

If the release date posted mostly everywhere is to be believed, Chrome should be available for download. Take a sneak peek at some of the Chrome Screenshots posted earlier today on TechCrunch.

Oh yes, and for those that like to read about it comic book style, check out the Google on Google Chrome Comic Book.

Will I be using Google Chrome? I’ll certainly give it a bash, but it’s too early to say whether I would replace my FireFox ;)

TechCrunch also posted another newbie service today – TwittAd.com. In a nutshell its Affiliate Marketing for Twitter profile pages. I don’t so much really have a problem with those, as I mostly interact with my Twitter through the Twirl application. However, should those adverts start appearing in people’s feeds, that is going to be the fastest way for me to say goodbye to Twitter on the spot. Examples and page formats for TwittAds are available to choose from for Advertisers. Publishers do at least have a say in which ads appear or don’t, but your background will be fully customized to suit the ad itself. So, who is signing up?


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Search Marketing Report 2008

Monday, July 7th, 2008
Posted in Uncategorized at 7:40 am by Christine

Recently Mandy de Waal caught up with us to discuss the state of the nation of Search Marketing in specifically South Africa’s environment.

She has written an incredible report which, with the help of other industry contributors, has really turned into a valuable piece.

Read the full report on ITweb or download the pdf article here:


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