For the duration of a session that swiftly became a seminar of adverse comparisons to Tv advertising, some of the country&rsquos largest marketers detailed how &ldquoon the cheap&rdquo World-wide-web strategies have turn into a central muscle of their advertising communi-
A expanding quantity of big marketers are getting World-wide-web direct-advertising and relationship-constructing strategies additional efficient than Television advertising, attendees at the iMedia Brand Summit heard.
Some described their successes with pure Internet plays, other folks with approaches that made use of economical Net tie-ins to boost the effect of their Tv buys.
DaimlerChrysler boosted its on the net media spending 30% final year, largely simply because of the significance of the World wide web as an info medium for automobile purchasers, mentioned Bonita Stewart, director of interactive communications for the automaker. She stated that 70% of car shoppers use the Internet as their main indicates of acquiring automotive information.
Some of the most powerful on the net efforts, however, dovetail with Television, she said, noting a 215% spike in overall web-site traffic and a 1,500% boost in the quantity of &ldquohandraisers&rdquo seeking information and facts about the Dodge Magnum in the day following bak standard bed a Feb. 1 Super Bowl ad for the car.
Chrysler now gets 80% of its on line handraisers for quotes and item information on the net, Ms. Stewart stated, adding that &ldquo800 numbers are just falling off a cliff and [voluntary response cards] are not as efficient.&rdquo
She said a branded entertainment test Chrysler did with TiVo involving a 30-minute plan that integrated its Crossfire model into the plot yielded 4 times the usual two% response rate for other direct-marketing and advertising strategies.
ING Direct located that direct marketing and advertising, like each mail and e-mail pitches, is yielding prospects at a small fraction of the price of the Tv marketing the on the internet bank initially attempted in 2001, said Dave Lewis, chief marketing and details technology officer for ING.
&ldquoTV has worked a lot significantly less than direct response &mdash both mail and interactive,&rdquo he mentioned. Tv had a powerful part in generating awareness, but ING analysis located direct marketing also designed sturdy awareness even amongst non-respondents, he said.
Direct marketing cars yielded new accounts for as tiny as $ten to $15 every single, he mentioned, compared to as substantially as $150 to $200 for Television and $35 for incentive-based member referrals.
That can be the distinction between profit and loss for ING Direct, an on the net bank that has concentrated primarily on a straightforward model of savings accounts paying 2% interest and mortgage lending, relying primarily on volume rather than up-promoting its clients. An average savings account for ING is $ten,000 and yields a gross margin of only $50 annually. But by acquiring accounts effectively, Mr. Lewis mentioned ING Direct now has $20 billion in assets and turned a profit its second year, 3 years ahead of strategy.
ING&rsquos $50 per client is roughly comparable to the income Unilever sees from every single of its buyers, said Tony Romeo, CEO of the consulting firm Strategic Dynamics and a former interactive marketing and advertising executive for Unilever.
So, not surprisingly, package-goods marketers also are seeking to interactive programs to attain shoppers on the low-cost, mentioned Grad Conn, a former Procter & Gamble Co. executive and now vice president and managing director of Grey International Group&rsquos Grey Direct Canada, Toronto.
Package goods marketers are spending hundreds of millions of dollars on-line, but really small of it on media, obtaining concentrated on aggregating prospects making use of custom content material on their personal branded and multibrand life-style Internet web pages, Mr. Conn said. They&rsquove already compiled vast online databases, ranging from P&G&rsquos Tremor program with 280,000 very connected teens to its 385 million name European database. He stated 12% of P&G prospects now connect with the firm online.
Brands, such as Kimberly-Clark Corp.&rsquos Huggies, have shifted 50% of their advertising budgets to relationship programs, significantly of that on the web, he mentioned.
Due to the fact package-goods on-line advertising has migrated entirely to connection applications, he mentioned on-line publishers need to shift from cost-per-thousand to price-per-acquisition (of new opt-in plan members) to win their dollars.
But Mr. Romeo stated even the relationship programs stay a pretty low priority with most package-goods businesses, although some larger brands, such as Huggies or Unilever&rsquos multi category Dove, have the sources and consumer appeal to help them.
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