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Search Marketing is Cost Effective
U.S. Bancorp Piper Jaffray recently compared the cost per lead across various direct marketing methods. Using data from Jack Meyers LLC and The DMA, U.S. Bancorp Piper Jaffray estimated that the cost per lead was:
$0.29 for search,
$0.50 for e-mail,
$1.18 for the yellow pages,
$2.00 for banner ads, and
$9.94 for direct mail.
Because of its high conversion ratio of visitors to buyers and its relatively low cost, U.S. Bancorp Piper Jaffray estimated the average acquisition cost using search is about $10 to $15 versus the online average of $38.
Source: Piper, Jaffray & Co. (March 2003)
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