Online Marketing Thrives – Even in a Recession

12/29/2008

Online and offline retailers feel this economy – and not in a good way either. They’re suffering. But, some businesses manage to thrive, in spite of a bad economy. For example, there’s Evesaddiction.com, a site that sells sterling silver jewelry. The owner, Raymond Galeotti, reports that his sales increased by almost 25% during the holiday season.

The Secret to Succeeding Online in a Tough Market

Why are his sales up dramatically, while other retailers are suffering? According to Mr. Galeotti, his secret weapon is aggressive online advertising, primarily on Google.

Even though Mr. Galeotti freely admits to paying more for his pay per click campaigns, his aggressive online marketing has paid big dividends because of his conversion rate (number of clicks that lead to sales).

The prolific use of Google’s targeting and measurement tools accounts for this. He also used an old standby offered by traditional and online marketers – discounts.

A Google Success Story: Crunching the Numbers

Crunching the numbers, Mr. Galeotti said that, for example, he may pay 80 cents a click. This is up from the 50 cents that he paid last year. But, his client conversions are disproportionately higher. For example, because he garners four new customers for every hundred clicks, his ROI is higher because last year, he was only getting two new customers for every hundred clicks.

His customer acquisition cost has also decreased, going from $25 a customer (50 cents x 100 clicks/2) to $20 per customer (80 cents x 100 clicks/4).

Obviously, this is a huge Google success story, just the kind the company likes to promote, and the kind other online marketers strive to achieve.

Search engine marketing firms and analysts have long advised clients that – even in a recession – Internet marketing works better than traditional forms of advertising. And, it’s cost effective to boot!

For more insight visit Pay Per Click Management