Selling Points: Optimizing E-Commerce

As I explained in my last post, Cost Per Acquisition (CPA) advertising is the best way to advertise from a risk/reward standpoint. This method produces quality customers on a cost-effective, pay-for-performance basis. But with a little extra effort, advertisers can ensure even higher quality results. Most already know the obvious ways to optimize their ads, such as:

• Updating creative so that it’s more eye-catching
• Creating more compelling messaging
• Clearly spelling out terms and conditions to avoid customer confusion
• Promoting special offers such as 10%-off coupons or free shipping on orders greater than $100

But many advertisers don’t realize that when it comes to accessing the highest quality customers, supplying feedback to the source of your traffic is sometimes the most effective way to do so.

Most publishers have the power to turn off ineffective traffic sources (i.e. those that supply one-time customers or those who quickly cancel after their free trials have ended) and put more emphasis on those that supply valuable traffic (i.e. those who become repeat or lifetime customers). So by monitoring their results and reporting this information to their publishers, advertisers are almost guaranteed to acquire the most relevant customers.

Supplying feedback is especially important because what might be a good traffic source for one type of advertiser may not be good for another. A clothing retailer might be looking for customers who shop frequently. But an office supplies company might want to specifically target office managers. Because each company has a different idea of what defines a quality customer, the same traffic source might be worth $30 to the retailer, but only $22 to the office supplies company.

What it comes down to is that advertisers must be at the right place in front of the right customers with the right offer. Even though it requires a little work on the advertiser’s part, monitoring each traffic source and supplying feedback is the best way to ensure that happens.

--Tim Welch

With consumers accessing e-mail on everything from computers, cell phones and PDAs to MP3 players, gaming systems and social networking sites, this low-cost, high-ROI marketing channel has more potential than ever. Online businesses can easily and affordably increase sales by tapping into their customer e-mail databases to announce special offers, new product launches, seasonal campaigns and more. Here are a few guidelines for a powerful and effective e-mail marketing campaign.

Quality is just as important as quantity. Most businesses want as many names in their customer databases as possible. But having unhappy subscribers is far worse than having no subscribers at all. When building your e-mail list, remember to think quantity and quality. Always give subscribers a way to opt out, use a change of e-mail address form for people to stay up-to-date and include a forward-to-a-friend link for valuable referrals.

Timing is everything. If your readers are anything like me, they probably spend a big chunk of their mornings sifting through the influx of e-mails sent between 6 p.m. and 9 a.m. Anything not deemed high-priority is usually skimmed through and promptly deleted. To spare your e-mail messages a similar fate, try sending between 10 a.m. and 11 a.m. or in the afternoon when your recipients’ inboxes are less likely to be bombarded. That way, your messages will have a higher chance of actually being read.

First impressions are sometimes your only impression. Without the right subject line and sender name, your e-mail will likely head straight for the trash. Make a good first impression with a clear, informative and relevant subject. And be sure to include your company or brand name in the "from" field, not an undecipherable e-mail address, a generic department name or the always-ignored “No Reply.”

For best results, e-mail in threes. As I mentioned in my earlier post, effective e-mail marketing campaigns should be blasted up to three times, each with slightly different messaging. The first e-mail should have no expiration date. And as long as it performs well, you should follow up with a second e-mail that conveys that time is running out for your special offer. Then send a third with a friendly “final offer” reminder. By sending several blasts and closely monitoring the results, you’re sure to maximize response rates.

Happy e-mailing!
--Lisa Contoyannis

It’s the most watched television show in America. It presents a rare occasion when viewers actually enjoy watching commercials. And it’s quite possibly the single most expensive advertising move a company can make.

In 1967, the cost of a 30-second ad for Super Bowl I was as low as $37,500. Fast-forward 42 years later to Super Bowl XLIII in 2009 and the price has soared to a record $3 million for a 30-second spot. And the cost doesn’t stop at the slotting fee. This is especially true for Denny’s, whose ad promised to pick up the check for millions of breakfasts today. But all companies who advertise during the big game will also have to spend more. Charles Cooper at CNET reported that all advertisers must have a back-end marketing budget to follow through on their Super Bowl ads.

Each of NBC’s 69 Super Bowl spots were filled on Sunday, bringing in a record $206 million, and most would argue that it was money well spent for advertisers to reach nearly 100 million viewers. However, the ads’ hefty price tags didn’t please everyone. The Retail Advertising and Marketing Association's (RAMA) 2009 Super Bowl Consumer Intentions and Actions Survey found that one in five people said they would have rather seen advertisers cut their Super Bowl budgets and pass the savings on to consumers than paying $100,000 per second of air time.

Surely it was beneficial to advertise during the most-watched Super Bowl in history. And there’s certainly something to be said about playing a part in such a huge cultural phenomenon. But many advertisers spent a significant percentage of their annual marketing budgets on those precious 30 seconds without the promise of a predictable return on investment. In this economy, is this truly cost-effective advertising? Share your comments below.