Archive for the ‘Permission Marketing’ Category

Advertising is the price for an unremarkable product

Wednesday, July 15th, 2009

“Advertising is the price for an unremarkable product” Jeff Bezos, Amazon founder said this during his annual shareholders meeting in May 2009.

Advocates and fans talk about best of breed products and services enthusiastically. This is why Google need not advertise their search engine while Microsoft spends $100M on another attempt to challenge Google.  It is why Belfast’s Mourne Seafood Bar fills every evening without advertising while the mediocre competition try to lure a crowd with ads in local fashion magazines or price incentives.

The story of the tomato sells better than the taste

The story of the tomato sells better than the taste

Creating a conversation or story is the best way to spread a message.  A restaurant that interviews the local tomato supplier and pushes the story out in their email campaign and social networks will create a conversation.  The truck sales man that explains how his customer Frank saved money by using less fuel in a long haul run from London will create a conversation.  The bank that thanks their student account holders for their business while in education instead of just sending them data (such as bank statements and flyers), will cause a conversation.  All of these conversations are great adverts that spread.

I think Jeff’s point is that the less conversation-worthy the product or service is, the higher the advertising budget needed to compensate.

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Grasping the value of permission marketing

Monday, May 25th, 2009

This is not an impossible scenario to imagine.  You place an ad in a specialist magazine read by a supposed 10,000 enthusiasts that could do with your product or service.  The ad cost you £500 + £200 in design, totaling £700.

Out of the 10,000 readers, it is a proven statistic that if you are really lucky and your ad really connects with the reader then 7% of the readers will remember your ad.  That means 700 have acknowledged the ad.  Out of those 700, 5% may follow the call to action and call you.  That is 35 possible enquires.  Remember this is just 35 phone calls; the customer still has yet to buy your product or service.

So what have you bought here?  You have bought the attention of 35 people for £700.  That’s £20 per person attention.  So the question then turns, how much would you pay to gain the permission of a potentially interested customer, get their email address and market to them multiple times? 

The moral of this tale is that having permission to market to a customer and having their email address or following on twitter/Facebook/Bebo is of massive value and a privilege worth many thousands of marketing pounds.

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