NONE: Re: ONLINE-ADS>> mail order
Re: ONLINE-ADS>> mail order
Don Massey (dmassey_at_masseypub.com)
Wed, 13 Aug 1997 22:13:36 +0000
> Dan Jondran wrote:
>As a publisher of an online magazine, I am in direct competition with
>print pubs. Further, most of the advertisers in our market publish
>paper catalogs. I wonder if there is enough interest to start a thread
>comparing statistics in this type of market. I have been asking my
>advertisers and my potential advertisers the following question: What
>is the cost of acquiring a new customer from print advertising? The
>responses have been in the $1.50-$2.00 range. We know that we are
>currently sending very interested customers to our advertisers
>websites at a cost of 7-20 cents each, that 70% of these order the
>catalog from the advertiser and that conversion rates (those who
>actually order products) are in the range of %80. This is a
>significant cost savings for our advertisers. The cost of acquiring a
>new customer from the online ads averages 30 cents/customer. Comments
>from either mail order
Dan
You are absolutely right about the costs of magazine ads vs the Net.
I have been in print media for almost 10 years. My average cost for
acquiring a lead with classifieds has been $1 - $1.25.
On the Internet it's almost nil! .028 cents each. My profit margin
over the years has been 22-24% in print media. It's 85% on the Net!
I pulled out of Popular Science and Popular Mechanics last year. When
I discussed the whole topic of their ad costs and annual escalations
vs the Internet, I was talking to a WALL! They don't have a clue.
I have a friend who is successfully targeting a small market on the
Internet. He has ONE large competitor in print advertising. He
laughs at them as they stumble along in the OLD ways of advertising
Don Massey
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