Re: Online ad campaign on a small budget

From: Rob Lewis <rob_at_marketingphysics.com>
Date: Thu 10 Jul 2003 09:14:36 -0500

David,
I'm sure your guide addresses the technical issues around
managing keywords and the pre-paid pot. But a bigger
challenge is how to get flexible marketing budgets that
allow the marketer to optimize their spend based on the ROI
of ppc ad buys. If the product is high touch and needs
consultative selling then the company should also include
capacity mgmt in the ROI formula to account for diminishing
returns for leads that go cold or never get followed up).
But if the product is a impulse type product that's highly
automated then keep buying keywords or whatever is working
until it doesn't work anymore. Why limit sales with
marketing budgets that are set a quarter or even a year
ahead? If mgmt continues to invest in what's working to
generate optimized business then the company will by
definition become more profitable. It's basically taking a
mfg model and applying it to marketing. Of course if
companies don't know their true costs of sales as you noted
then maybe they ought to figure that out first.

-Robb Lewis
robb_at_marketingphysics.com





Received on Thu Jul 10 2003 - 09:14:36 CDT