November 19, 2009

The 80 dollar Waste of money on Online Advertising

I listened to a session today by Wolfgang Allisat from Omniture. It was an ok talk, most of which I’ve heard before. He said a couple of truths however, that my mood really felt like hearing. You all reading this blog post probably know this already, but I feel like I need to say it.

I am unsure of the nature of the relation, but supposedly there is a 80:1 relationship on how much money companies spend on marketing for people to visit their website and how much they spend on actually converting them when they get there. That’s a sick relationship right? That’s like going to the pub, putting on the best behavior, being generous, hitting on the most beautiful girl at the place and getting her to come with you home, only for you to live in a dirty shack where your skidding tracked boxers are laying there in the hallway, there is hair all over the toilet and long hairs in different color all over the bed. IDIOTIC if you want to get laid right? So why do we behave exactly like that when it comes to money spend and the web?

We spend millions to get the users to come over, and when they do, we just don’t give a crap what they do. We’re acting like we don’t care if we get closure or not. We got them there! YEY… let’s report an increase in visitors to top management and smile. Is the traffic qualified? Well, that’s not the point… right? eehh… 80:1.. my god.. the business really needs a proper bump on its perspective.

What we buy is what we get

We buy banners or engage in viral word-of-mouth activities. We’re displaying ads that cover the entire white house or land a jumbo jet in a gigantic bowl of pop corn just to get the attention of the people around us. We make friends with them through the best kind of chit chat and evolve together with our customers. We listen and take care of them. BUT, when they are ready to buy –> we just don’t give a f**k.

That is what this relationship is telling us. 80 dollars on advertising, 1 dollar on conversion. We should be ashamed. I say We as I am in the middle of all of that. I want people to spend money on social media, SEO and other activities to draw people to buying their stuff. After seeing these numbers in front of me I am considering dropping the social media and SEO completely to focus my activities on what I am really the best at, namely making engaged people buy stuff.

Stop selling people, that’s not where your focus should be

Another of the speakers, Steen Rasmussen, put words to where corporations go wrong these days. “They try to sell stuff online.” That is soooooo true. Why are we trying to sell stuff online? We all know it doesn’t work. The only thing that works is “enabling people to buy stuff” online, which was Steen’s punch line. However cheesy those two phrases are when put together, they are surely clear enough for a kid to grasp them.

SEO, a perfect way to meet the searcher in the search engine result page. Engagement in social media is absolutely crucial if you want some check on what people expect of your company. But to go from that to not care about what they do when they get to the website. Well that’s just plain stupid. Are you stupid? I guess you are, cause most of us are.

And I already know this, why do I react?

Now, today’s news was really no news to me. It fit my mood, and so I got pissed off enough to get inspired to write this blog post. So many companies not knowing anything about this and even fewer doing anything about it. By sharing today’s impressions I hope that I inspire someone out there to pick up what’s around you and say that you have had enough and start the long process towards change. I am a restless individual, and I want change when I see flaws. I don’t wait, and I am not resilient. But why should I be? Customers aren’t!

//Jesper

4 Comments
  • Johan / Webbhotell City Network, November 25, 2009 Reply

    Intressant jämförelse med baren! :-) Finns det någonstans att läsa mer om just den relationen - 80:1. Först tänkte jag - nej omöjligt - sedan började jag titta lite på vad vi själva gör - och oj - ja det kanske stämmer om man tittar lite över tiden.

    Vad bör relationen vara?

  • Jesper Åström, November 25, 2009 Reply

    @Johan - Blog comment link builders should look at your example. That kind of back link I let pass. Add a name and you'll get your keywords plus the link :)

    It is difficult to say as most of us get conversion rates ranging from 2-60%. If you have 2% conversion then you should probably focus a larger sum of your budget towards conversion but if you have 90% conversion, then you are probably fine. I guess it depends upon the company and where it is. I just found it absurd that the relationship was 80:1.

    I got the info from a person at Omniture and so I guess they have it recorded somewhere :).

  • Jesper Åström, January 14, 2010 Reply

    @Johan - Blog comment link builders should look at your example. That kind of back link I let pass. Add a name and you'll get your keywords plus the link :)

    It is difficult to say as most of us get conversion rates ranging from 2-60%. If you have 2% conversion then you should probably focus a larger sum of your budget towards conversion but if you have 90% conversion, then you are probably fine. I guess it depends upon the company and where it is. I just found it absurd that the relationship was 80:1.

    I got the info from a person at Omniture and so I guess they have it recorded somewhere :).


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