Lots of buzz about how measurable internet marketing is. Why then is the return still so low compared to traditional direct? I finally found the hard data this morning. Over 50% of MarCom budgets are spent on Direct. Mail STILL enjoys the best ROI. Email is dismal in comparison. The only channels with a lower ROI than email, are mobile and social media.
I suspect the reason is that most businesses trying new channels - because they are so cheap, quick and dirty - are doing a terrible job at it.
They are shouting rather than listening, hawking rather than offering. Companies using Twitter, Facebook and Email campaigns need to take a page from companies doing it right: Zappos, Amazon, IKEA, etc. You don't need their budgets; you need their smarts.
Coincidentally, I received Godin's new book via FedEx today; Linchpin may provide some of the answers.
If you have questions about your company's efforts, post them here. I'll be launching a marketing troubleshooter blog on this space over Reading Week in March. Stay tuned....
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Oh - this is a good one for debate for sure. I think it really depends on your target market. There are several industries / businesses that social has a way better ROI.
ReplyDeleteI also think that social serves a purpose not as tangible as direct. Direct is just that direct for getting a sale. Social is about a brand, a conversation, feedback, research, sales and so much more.
And just to sit on the fence... a good campaign can not have one without the other.
Well, it's a lot like the Nigerian scammers ... amazing that *anyone* answers.
ReplyDeleteLinds...I'd love to see even one industry that sees better ROI. They may be doing great things, but not at that level yet. Some interesting isolated examples but no industry yet that I have seen data on has seen ROI surpassing more traditional direct methods.
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