Is interactive marketing worth the return on investment (roi)?
Since so much marketing activity is occuring on the internet, how do you measure interactive marketing roi, especially when you compare it to direct mail and traditional advertising?
While return on investment is measured in terms of dollars spent and dollars that come in, then it's important to point out that interactive marketing also allows advertisers to target - or "go after" - specific target customers and, at the same time, gives them a chance to pull them in using search engine marketing strategies.
Here's an outline I wrote of reasons to use interactive marketing versus only traditional direct mail.
I. High Rate of Return on Investment
A. Email - Highest return for every dollar spent compared to all other channels:
According to a new Power of Direct economic impact study from the Direct Marketing Association, return on investment from email marketing keeps surpassing other channels.For 2008:- Email marketing’s ROI will be $45.06 for every dollar spent on it- Non-email internet marketing delivers $19.94 for every dollar invested- Catalog marketing generates $7.28 return - Non-catalog direct marketing’s ROI will be $15.55 for every dollar spent
B. Email Open Rates and Click Through Rates
1. Industry Standard: Numbers vary based on relationship between sender and receiver. But, typical open rates may reach 30% while click through rates may reach 10%.
2. An interactive agency, Rhythm Interactive, improved a client’s click-through rate by 200% when improving the content
II. Budget-smart cost per lead
Cost per lead is $ 30 for one client that Rhythm Interactive is introducing to a new program for Personal Web sites
III. Ability to Target Specific Audiences, Track Behaviors
Rhythm Interactive’s work with the State of Connecticut Dept of Tourism resulted in more than 24,000 sweepstakes participants in a 12-week period. More than 72% requested vacation guides. Other details available upon request
IV. Digital – Personal URLs
This gives companies the chance to attract specific clients who fit particular profiles. Companies may have more than one niche to attract and developing personal urls is one way to create a personalized experience. This integrates effectively with direct mail, person-to-person and telephone follow-up.
Let me say, I'm also a believer in using a marketing mix such as direct mail to reach customers where they are. Not everyone is online all the time so strategies that employ direct mail combined with interactive online marketing can be quite successful.
By the way, here's a great article on interactive marketing that I found on Bnet from 1991. It talks about delivering a message on floppy discs!
