Cost and benefits: Online versus offline

Have you ever seen or heard an interesting advertisement on television or radio in passing and later searched for more information regarding the product advertised? If so, you are not alone: With the growth of the internet, consumers are becoming more interactive and instead of waiting for the information to come to them, they are going out and searching for it.

Many people listen to the radio in the background at work, where they most likely have an internet connection. If they hear an interesting advert and want more information, chances are good they will go directly to the URL, if it is given in the ad and they can remember it. If not, chances are they will Google either the brand name or key-phrases mentioned in the advertisement.

Say, for example, you hear or see an advert for dog food that promises to give your best friend healthy gums and teeth. All you remember from the advertisement is "dog food", "healthy gums" and "healthy teeth." These are the key-phrases you will use when searching for the brand. This particular example is from a print advertisement from a consumer magazine and the brand in question is not ranked for the mentioned key-phrases. Since you, the customer, can't remember the brand name, you are going to select the first relevant search result. Consequently, the brand that paid for that TV, radio or print advert is losing potential business to competitors that have well-optimised sites.

Many marketers argue that they don't have budget to include online marketing in their current strategy, yet they are advertising extensively on television, radio and print. Some marketers perceive online marketing to be exceptionally expensive. To put the cost of online versus offline media into perspective, we did some research:

Based on the advertising rates from leading consumer magazines and newspapers in South Africa, we estimated the following figures for print media:

• A full-page, full-colour advertisement in a consumer magazine will cost you approximately R56 000

• A full-colour DPS in a consumer magazine will cost you approximately R111 000

• The average cost of a full-page, full-colour advertisement in one of South Africa's leading newspapers will cost you approximately R155 000

• A half-page, full-colour advertisement in one of the same newspapers will cost approximately R77 000

The estimated cost for online marketing is as follows: A comprehensive, twelve-month Search Engine Optimisation (SEO) campaign can cost you the same as approximately three of the full-page full-colour print adverts mentioned above.

SEO is a good basis on which to build your online marketing campaign. An aggressive twelve-month online marketing campaign consisting of SEO, pay per click (PPC) advertising and online PR will cost you approximately the same as eight full-page full-colour advertisements, as mentioned above.

At first glance this figure might seem expensive but, based on the fact that it stretches for a full year, the returns it wields makes the investment is well worth it. One of the key benefits to online media is that it is completely measurable, unlike traditional media. You are able to track and measure virtually everything from numbers of visitors, key demographics to the key-phrases used to find you in search engines using analytics programmes.

Most importantly you can measure the efficacy by measuring conversions. By analysing this information, you can improve the targeting, messaging and reach of your company's website and thereby increase return on investment.

We are not suggesting marketers utilise only online channels. Traditional channels still have their place. Radio, television, print and billboards are great for creating brand awareness and it has been said that offline media stimulate online searches. However, marketers should not under-estimate the influence and reach of the internet.

The latest South African statistics suggest that internet usage grew by 12.5% during 2008. People are spending more time online, too - hours spent on the internet increased by 45% between 2007 and 2008, from 2.6 million hours to 3.8 million hours. Furthermore, it is not only the younger demographic using the World Wide Web to find information, the internet usage of the 50+ demographic increased the most during 2008 by 0.6%.

What does this mean for business owners and marketers? It is important to know that the internet has changed the way consumers buy and adapt your strategy accordingly. The influence of the internet cannot be ignored. No longer can we only talk about above-the-line and below-the-line advertising when deciding on the promotional mix. It is important to include an online marketing campaign as part of your overall marketing strategy to create a through-the-line campaign. This approach ensures brand awareness across all channels and maximum return on investment.

When adopting the through-the-line approach, it is important to close the loop. As mentioned earlier, a potential client may remember certain key phrases from your television, radio or print advertisement and this is what they will use to search for you. Therefore it is important to ensure that the message is consistent throughout all channels.

By working closely with your online marketing consultant, you can ensure that your website is optimised for those specific key-phrases and that you rank well for them. A strongly optimised website will ensure that consumers who are actively searching with key-phrases relevant to your website will find you, and not your competitors.