Here’s some interesting information you can use to achieve a better ROI on your Internet marketing efforts.  It comes compliments of MarketingSherpa and ad:tech.  Their 2008 year-end survey of more than 1,200 marketers was designed to identify the most effective Internet based marketing tools. Beyond being the most effective, the study wanted to determine which tools produced the greatest ROI.

The chart below shows the various tactics marketers use and were covered in the study.  The usage axis shows the percentage of marketers using the tactic with the horizontal axis showing the percentage of marketers reporting great return on investment.  The size of the circle represents the relative budget compared to other tactics.

Improve Your Internet Marketing ROI

“Paid Search” (big blue circle) is a winner with about 50% of marketers surveyed saying it produces great ROI.  In second place is “House Email” (small orange circle) with about 45% indicating it produces great ROI.  In third place at around 40% is search engine optimization (SEO – even smaller purple circle).

Note however the difference in the size of the circles.  “Paid Search” is significantly bigger than either “House Email” or “SEO.”  As the report points out:

“The relative size of the circles means the tactic [House Email and SEO] requires far less budget than “Paid Search.”

Conclusion:  If you’re dealing with a hospitality marketing budget smaller than you need (and who isn’t?), make sure you are maximizing your house list email marketing efforts and SEO before branching out into paid search.

FYI – if you want to get the most out of your email marketing program be sure to avoid The 7 Deadly Sins of Email Marketing For Luxury Hotels.

What do you think?  Safe travels – Madigan Pratt

4 Comments
  • This data/chart is somewhat skewed. What came first, the chicken or the egg? Please be reminded that house email lists, while providing an excellent ROI, cost a lot to grow. Marketers spend considerable resources to build a house email list through all forms of on-line and off-line efforts. One doesn’t get a house list without allociting budgets to SEO, PPC, Trade Shows, Print ads, online PR, public relations, etc.

    April 1, 2009
  • This data/chart is somewhat skewed. What came first, the chicken or the egg? Please be reminded that house email lists, while providing an excellent ROI, cost a lot to grow. Marketers spend considerable resources to build a house email list through all forms of on-line and off-line efforts. One doesn’t get a house list without allociting budgets to SEO, PPC, Trade Shows, Print ads, online PR, public relations, etc.

    April 1, 2009
  • Madigan Pratt

    Matt – you’re correct. But what really surprises me in this chart is that nearly every hotel is using house email lists, but less than 50% claim that it is producing a great ROI. Something is really wrong here as house lists should be producing the highest ROI.

    I suspect it is because many of the hospitality marketing folk in charge of email marketing don’t have any formal direct marketing experience. They are using what should be a precision marketing tool to BLAST out offers to past guests and prospects.

    I spoke about this in an earlier article: The 7 Deadly Sins of Email Market for Luxury Hotels. You can find it at: http://www.hsyndicate.org/news/4033776.html

    April 1, 2009
  • Madigan Pratt

    Matt – you’re correct. But what really surprises me in this chart is that nearly every hotel is using house email lists, but less than 50% claim that it is producing a great ROI. Something is really wrong here as house lists should be producing the highest ROI.

    I suspect it is because many of the hospitality marketing folk in charge of email marketing don’t have any formal direct marketing experience. They are using what should be a precision marketing tool to BLAST out offers to past guests and prospects.

    I spoke about this in an earlier article: The 7 Deadly Sins of Email Market for Luxury Hotels. You can find it at: http://www.hsyndicate.org/news/4033776.html

    April 1, 2009

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