Cost Effective Online Marketing Methods

One of the interesting data in the Shop.org/Forrester Research’s report “State of Online Retailing 2007″ is the most cost effective online marketing method.

Per the study, the amount of dollars online spent by an online retailer to get an order based on various methods are as follows:

• Email (to customer list) = $6.53
• Affiliate program = $17.47
• Paid search = $26.75
• Banner ads = $71.89

Yet the average retailer (I surmise, average LARGE retailer) only spends about 10% of their marketing budgets or $311,196 on email, compared to $1.8 million spending on banners.

Check your own marketing effectiveness, and how much you spend to get one order from that marketing method — and allocate more resources on the most cost effective method for you