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BizReport : Internet : September 24, 2009

Online media outperforms traditional media in customer acquisition

More and more study results point to the increased use of online media compared with traditional due to its measurability and cost-effectiveness. Now, new research from the Fournaise Marketing Group shows that some online channels also outperform traditional media in terms of customer acquisition effectiveness.

by Helen Leggatt

figures collated from the first half of 2009 show, across many businesses, that online marketing channels are outperforming traditional media in terms of accountability and measured performance.

According to Jerome Fontaine, CEO and Chief Tracker at Fournaise, the shift in marketing spend from traditional to online media is also paying off in terms of customer acquisition effectiveness.

"Our all-media real-time tracking results are showing that online media are on average 35% more result-effective than traditional ones," said Fontaine. "And this number could be even higher if the online media industry is able to address all the reliability, credibility and transparency issues it is still facing today."

But, not all online media channels are good performers. Fournaise found that targeted text email campaigns and e-direct marketing campaigns delivered the highest Customer Acquisition Effectiveness Rates (CAER) with 59% apiece, and SEM did well with an average CAER of 54%.

However, in comparison, the performance of banner/display ads appears in decline, hitting a low of 29%, found Fournaise. Why? According to Fournaise it's down to disappointing traffic generation resulting from 39% of ad inventories not being properly served.

Tags: customer acquisition, marketing effectiveness, marketing spend, online media, traditional media

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