Traffic Cost Inflation, Coming to a Marketing Budget Near You
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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Written by:Bryan Eisenberg





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