Kellblog · 2006-04-17 · 7353d

Marketing ROI Accountability: Why Half Your Advertising Budget Remains Wasted

This article challenges the notion that digital marketing and search advertising have solved the classical problem of unmeasurable advertising waste, popularized by John Wanamaker's famous quote. The author argues that while Enterprise Marketing Automation systems and Google's accountability messaging promise better ROI measurement, click fraud and the fundamental difference between branding and direct marketing create a new form of waste that replaces the old.

4 metrics· Cited 4× in the knowledge base ·Open source ↗

Metrics in this report

Average Click-Through Rate on Search Ads

2%

mean

for paid search advertising, equivalent to traditional direct mail response rates

Break-even Response Rate for Direct Mail

0.6%

calculated example

for $1 cost per piece, $300 product price, $150 production cost

Click Fraud Cost Example

1000$

illustrative

cost of 20 manual clicks on high-value mesothelioma ads

Profitable Response Rate for Direct Mail

2%

example target

achieves 200% ROI on direct mail campaigns