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Lucy Griffiths

The Financial Benefits of Online Marketing

1st Apr 2009 Content Marketing 2 minutes to read

One of the benefits of online marketing when compared to offline alternatives is the huge reduction in costs. There are many financial benefits to Internet marketing, here are just a few explained:

Cheap but Effective
Kicking off, one of the major benefits of marketing online is that it is very cost effective. In fact it’s not only much cheaper than traditional advertising, but it’s also many times more efficient because it only targets the people that you want to target, rather than blanketing whole groups of people by location or broadcasting region.

With online marketing, you only pay for what you use. Take a look at Pay Per Click or PPC, you only pay for when interested people from your target market click on your ads, that saves money, time, and only attracts those who are already interested to your website. With lower costs and more precise targeting, online marketing seems like a no-brainer! [See: A Marketing Manager’s Guide to Online Marketing]

Cutting Expenditure
One of the top financial benefits of online marketing is that you can reduce your annual expenditure by making most of the process from advertising through to purchase automated. You will need someone to direct your online marketing, but you can reduce your sales and marketing salary costs.

If most of your sales process now takes place online, you can move to smaller premises, because you won’t need the physical space and that means a reduction in rent, utilities and insurance. What’s more if you use a catalogue for your products, you can avoid costly printing and distribution costs.

Global Marketing Power
Online marketing means that you can sell to anyone at any time. You don’t need a physical store because you have an online store that is open 24/7. This means you can sell your products to anyone, anywhere around the clock. You’re no longer restricted by time and location considerations. Your revenue potential just increased while your costs have diminished!

Staying Power
When you use article marketing as a tool, you may pay once for someone to write that article, but it will stay on the Internet for many years to come. Where else can you place a marketing proposition and have it stay around pointing at your products and services indefinitely for no added cost?

Emails Cost Nothing
Compared to direct marketing or telemarketing, email marketing costs relatively nothing, yet you get to deliver your proposition directly to your target market. You can send thousands of targeted messages directly into the homes and offices of your potential or existing customers with immediate responses.

Measure your Return on Investment
Unlike traditional methods of advertising, you can immediately measure you ROI with online marketing. This is particularly the case with PPC advertising where analytical tools help you to track sales from specific ads through to conversion. This helps you to reduce costs even further by discontinuing ads that aren’t working. With a television advert or billboard, it would be impossible to test the success as accurately.

Online marketing has revolutionised marketing, advertising and sales, it offers great financial benefits and if you’re not using it to its full potential then you’re wasting a great opportunity!

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