Online Marketing Gets Ready for the Holidays

Online marketing is on the upswing this holiday season, according to a recent Responsys.com/IntelliQuest survey fielded in August 2000 among 352 companies with an online presence. The survey found that 32% of these businesses' marketing budgets will go towards online efforts -- up from 25% last season.

The cost-effectiveness online marketing suits small businesses (revenue under $1 million), more of which say they will spend a portion of their holiday marketing budget online than medium or larger firms.

Smaller businesses have also allocated more of their total budget (43%) to the internet while medium and large firms have set aside 27%. Companies that utilize both on and offline marketing tactics have allotted 32% to web initiatives.

The report notes that e-mail marketing efforts will increase this season. Small businesses lead here as well with 45% using e-mail ads. However, 33% of medium to large businesses will also use e-mail -- an increase from only 17% last season.

eMarketer's eMail Marketing Report points to cost-effectiveness as one of the most important benefits of e-mail marketing. The following chart shows that both solicited and permission-based e-mail can be significantly cheaper than traditional direct marketing methods like direct mail or telemarketing programs.

Credits: AdsGuide.com