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Jan 27, 2009

New Chart: Top B2C Tactics in ’09: Email, SEO and Paid Search Rank Highest in ROI

SUMMARY: Consumer marketers rank house email, SEO and paid search the highest for return on investment. Many marketers plan on boosting budgets for these online tactics this year, with display ads taking the biggest hit.
B2C Marketing Tactics that Rank Highest for ROI
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For years, we’ve asked consumer marketers to rank the ROI of various online marketing tactics. Here are their rankings for Q4 2008. The size of the bubbles represents their relative share of online budgets.

House email, SEO and paid search continue to enjoy the best ROI. The biggest share of marketers plan on boosting their budgets in these areas. Many predictions peg the growth in search budgets as below previous levels with some companies (especially retailers) pulling away from expensive brand terms. Search may end up faring well through the recession, however, within a larger overall shift from brand tactics toward the more dependable and measurable direct online tactics.

Display advertising appears to be the big loser in 2009. It gets low ROI reviews from marketers at a time when brand in general is under-valued. This may give advertisers some leverage in negotiating for a higher share of premium ad space in hybrid deals – as well as an inexpensive opportunity to test some of the higher-performing tactics, such as contextual and behavioral targeting.

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Comments about this Article

Feb 03, 2009 - Marc Engelsman of Digital Brand Expressions says:
These findings are consistent with SEMPO's State of Search Survey last year. And it still amazes me that the perception of paid search is that it delivers better ROI than SEO when our experience with clients is exactly the opposite. Wonder if it is just because more people are using paid exclusively over SEO (due to lack of knowledge or ability to implement SEO); because the CPC model is inherently easier to track and tie to ROI; and/or because the paid budgets are much larger than SEO budgets and therefore require more "justification."

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