CPC Report
...even the best rich-media adverts obtaining response rates of only 2.1%, the question facing many marketing directors is whether they can continue to justify current levels of spending in a form of online advertising which delivers such a low and unquantifiable return.

The CPC model delivers a clear and measurable return on investment. For instance a recent campaign for a leading online European holiday firm resulted in £37 of sales for each £1 invested in CPC search advertising. This level of return is not unusual and is causing many firms to revaluate how their online marketing budget is being carved up...

The brand building potential of search marketing shouldn’t be ignored and can be particularly important for new entrants into a market or small companies with small marketing budgets. Through the use of search, these types of companies can appear alongside the big brands in search listings and as a result build brand awareness. New players can of course target their spending so that they secure the top spot in a search ranking, for instance during the months following launch to gain recognition. In fact, recent research from
DoubleClick revealed that 41% of internet users gained initial brand awareness from search alone – that’s without the logos and cool graphics.

For businesses of all sizes, search should be a vital component of a company’s online marketing strategy – its targeted, unobtrusive, measurable and low in cost. Arguably, everything that traditional online advertising isn’t.

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