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Friday, Mar. 31, 2006 at 12:54 pm

Traffic Cost Inflation, Coming to a Marketing Budget Near You

By Bryan Eisenberg
March 31st, 2006

A large part of the marketing battle has traditionally been fought over traffic versus impressions. The more people exposed to the marketing, the better. So to improve marketing results, marketers typically bought more traffic.

In an age of media fragmentation and customer control, this approach works less well each passing minute. It simply costs more to reach fewer people.

Tomorrow’s successful marketers must find a way to do more with less traffic.

TV Packs Less Punch

According to a Forrester poll conducted in partnership with the Association of National Advertisers (ANA), television, mass media’s golden child, is losing its luster. Some even say their TV ads are tanking.

Of 133 advertisers who control over $20 billion in advertising, 78 percent feel TV advertising’s potency has declined since 2004. When DVR penetration gets above 30 million households, 24 percent will cut their TV ad budgets at least 25 percent. They’ll reallocate that money to online and other channels. More than three-quarters will invest more in Web advertising; almost 70 percent will spend on SEM (define).

Offline, media fragmentation is taking its toll. Though demand drives price, mass media ad prices are unlikely to decrease. It costs the same to operate a TV station, cable outlets, radio stations, and magazines, regardless of audience size.

Continue reading my column at ClickZ…

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Comments (4)

  1. [...] The internet marketing industry has been in a Search Engine Optimization mind frame for the past decade. Many companies are so proud of their high search engine rankings, yet they know very little about their analytics and the value that they can get from finding out how their visitors are interacting with their web sites. Very few companies even see a problem with their online performance because they have worked so hard to get ranked highly on search engines. However traffic cost inflation is catching up with them quickly. Do you think it would be a failure if we implemented conversion and persuasion optimization on a client’s web site to help them increase their conversion rate and their traffic decreased as a result of this, BUT their sales went up? [...]

  2. [...] traffic cost inflation been a wake-up call for your business? Technorati Tags: Google, Pay Per Click Advertising, PPC [...]

  3. Traffic is very important in order for your site to succeed..and most importantly for you to be able to sell your products.

  4. Do more with less traffic!!! This is what I’ve been teaching for years. It’s a wonder people don’t seem to understand they can’t just copy each other and hope to make it big. You have to stand out. I’ve found one of the best ways to do this is with video presentations. Video sales pages, video products and courses, video membership sites, video, video, video! That’s where it’s at.

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Bryan Eisenberg, founder of FutureNow, is a professional marketing speaker and the co-author of New York Times and Wall Street Journal bestselling books Call to Action and Waiting For Your Cat to Bark and Always Be Testing. You can friend him on Facebook or Twitter.

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