Re: Internet, telephone book ad pages and market share

From: Thomas Bosilevac <Bosilevac_Thomas_at_cat.com>
Date: Tue 14 Dec 2004 18:37:16 -0600

Jim,

Although I believe some of the growth has come from the rise in the amount
of web properties (mainly lead generation sites, affiliate's and
re-sellers) I believe most of the growth is coming from the same websites
that have been around for years. This growth, I believe, comes from the
amount of attention to ROI. With this shift in attention, improvement and
use of measurement tools to prove ad spend comes more buy-in from
management and therefore more of a budget.

Whereas many of the top publishers still looked at click-through rates for
advertisements, now they are looking at their Cost per Click, Cost per
Action, and Return on Ad Spend more carefully. I think this also has made
search engine marketing more readily accepted. Since corporations now
have an exact cost per visit, that can also be pointed to the Cost per
Action ... they can theoretically associate an unlimited budget to this
medium (if of course the ROI is within their goals).

Capturing the market share has indeed became much more of a challenge, but
with the introduction of local search I think this challenge will get a
little easier to swallow. If you are selling to the mass-market in
domestic (or global) markets, however, the challenge still remains. We
have now reached a point where saturation is becoming a large issue, and
must be dealt with. As ROI becomes easier to measure, ad rates will start
to rise again.

On-line Marketing is unique in that the ROI can be measured at a pretty
high level of accuracy (never 100% as some may think). I think this is
the main cause for more of the marketing spend to be spent on the
Interactive side, and why TV and radio are seeing a large decrease in
spend at the same time. "I know 50% of my advertising spend is wasted ...
I just don't know which half" has been the issue since the first ad was
stapled on a tree, or shown in the newspaper. If I were a CMO, I
certainly would put more of my eggs in the basket that can show me more
readily the answer to the question.

Cheers!

Thomas Bosilevac
Metrics Specialist
Global Brand Management
Cat.com Strategy and Services
Caterpillar, Inc.
309-675-4564




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Subject: "Affiliate Marketing 2005" Survey Results
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From: "Linda Buquet" <4catalyst_at_excite.com>
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Date: Wed 15 Dec 2004 08:11:26 -0600

I participated in MarketingSherpa's recent Affiliate Marketing
survey and have been anxious for them to publish the results.
Here is is, hot off the press.

"Special Report: Affiliate Marketing 2005 -- Do Merchants &
Affiliates Have Unrealistic Expectations?'

"MarketingSherpa's December affiliate marketing survey
results are in -- and the results are stunningly different
from our expectations.

2004 has been a particularly tough year with merchants' fears
of cookie stuffing and dishonest adware/spyware, CAN-SPAM
legalities, and paid search arbitrage.

Many experts, including us, worried these factors would drive
the estimated $1.5 billion affiliate marketing industry into a
decline.

Guess what? According to our survey results, affiliate marketing
is alive and well. Overall 91% of surveyed merchants and 82% of
affiliates expect revenue growth in 2005."

Here are the results of the survey, plus 5 tactics e-tailers can
use to increase affiliate revenues from Shawn Collins.

http://www.marketingsherpa.com/sample.cfm?contentID=2878

Linda Buquet, Affiliate Management Consultant

http://www.5staraffiliateprograms.com




Received on Tue Dec 14 2004 - 18:37:16 CST