Wednesday, June 10, 2009

Return on Investment (ROI) from Online Marketing

In 1999 Yahoo went public and quickly became the top Search Engine used by millions of Internet Buyers worldwide. Microsoft Network (MSN) and America Online (AOL) were the top competitors with little heard about Google. Move forward to 2008 and Google has become an adjective "Do You Google?" or "Google it" commanding 60% of the online searches. Naturally businesses and Internet Marketing companies spend the majority of online budgets on Google AdWords pay per click advertising. Yahoo Search Marketing and Microsoft bCentral are often overlooked or ignored missing millions of potential buyers.

The largest is not always the best and marketing dollars should be invested where the best Return on Investment will be accomplished. Advertisments for 'Kansas City New Homes' on Google AdWords can cost up to $3.85 per click reaching 60% of the online users. The same advertisment on Yahoo averages $1.31 per click with 18% of online users. with a mere 14% of online users Microsoft bCentral advertising will cost $1.12 per click. A monthly budget of $500 would give:
  • 129 clicks (potential buyers) from Google
  • 381 clicks (potential buyers) from Yahoo
  • 446 clicks (potential buyers) from Microsoft bCentral

Others considerations for online marketing are demographics and usage - consider that Yahoo became the top Search Engine 8 years ago and remains the top destination for finance and business users. Google has the largest porportion of teenage users making it perfect for marketers wanting to sell IPOD's, concert tickets or Teen Magazine. Researching the demographics to ensure your marketing dollars are reaching the proper audience is more important than the total number of users on a specific search engine. Pay Per Click alone is not an effective long term marketing solution. Pay Per Click is effective for targeted traffic with a set budget yet will constantly cost more for less results or traffic as others bid against you for the top spots.

Developing a professional website incorporating the key aspects of design, Search Engine Optimization, navigation, usability, content, purpose and one-click call to action opportunities is the best overall solution. Investing more in expert website services will reduce the costs required for constant paid listings when your website shows up naturally online. Websites listed through pay per click that are poorly designed or ineffective are PAYING to exclude themselves from buyers!

Robert 'Dot Com' Jackson
http://www.BuilderConsulting.com

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