Online Advertising And The Marketing Digital Divide
Using SpyFu, one can get very rough estimates of what leading brands spend on online advertising on a daily basis. The data is prone to errors and inaccuracy, but can be used to view general trends.
Take three companies that thrive on catalog marketing, namely L.L. Bean, Lands' End, and Pottery Barn. Here is what SpyFu suggests these companies spend in online marketing, on an annual basis.
- Annual Average Spend Across These Brands = $10,201,000.
- Average Annual Clicks Generated From The Advertising = 12,015,000.
- Average Cost Per Click = $0.87.
- Annual Average Spend Across These Brands = $23,550,000.
- Average Annual Clicks Generated From The Advertising = 33,312,000.
- Average Cost Per Click = $0.78.
- Annual Average Spend Across These Brands = $40,654,000.
- Average Annual Clicks Generated From The Advertising = 63,483,000.
- Average Cost Per Click = $0.68.
I tried to pick companies that had annual traffic that was directionally similar. How the businesses use advertising to drive web traffic is very different. What this does show is that there may be a marketing digital divide. There may be a way for catalogers and retailers to migrate advertising online, and actually see better returns on investment.
As postage escalates, traditional catalogers have an opportunity to emulate the techniques that the folks at Zappos and Blue Nile use. Over the next five years, there is an opportunity to transition advertising strategy from print to online. There is an opportunity to cross over the marketing digital divide.
Labels: Blue Nile, L.L. Bean, Lands' End, Macy's, Marekting Digital Divide, Neiman Marcus, Nordstrom, Pottery Barn, SpyFu, Zappos