JANE BEAVEN WROTE:
"I have recently been involved in an online
campaign where the main objective was to gain
new registered users (subscribers). In post
campaign analysis, I have worked out that it
has cost my client approximately AUD $2
per subscriber (this cost is based on the
total media spend only). It is the first time
I have done an analysis of this kind and was
interested to know if any advertising
professionals out there had worked on
campaigns relative to this and had some
statistics that I could compare with my
result."
Hi Jane,
You are on to the key of Interactive campaign
management. Only by looking at a true acquisition
or action cost can an exec. be certain that the
dollars were well spent. But that is only half the
story. To determine if a $2 CPA is good you should
consider the following:
What is the lifetime value of the customer? What
was the range of response? In other words which sites,
creative messages or elements produced the lowest CPA?
Did you drop the bad and accelerate the good? Did the
CPA improve over time? Was there over delivery or is
their still a large universe to draw from? Did the
creative have a frequency cap or was the result
weakened by banner burnout? Was their any brand
consideration? Did you adjust time of day, day of week
delivery? And on and on... I am always happy to hear
that folks are focused on the true end result. But
don't stop there. True optimization can only occur when
all these factors, and more, are taken into account.
So is $2 good? Like my dad always told me, "Everything
is relative." Good but can be better! Good luck,
Tom Cuthbert
Marketecture
www.MKTiQ.com
Received on Wed Aug 23 2000 - 12:46:06 CDT
