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How To Determine the value eMarketing.

Given that eMarketing is highly accountable because of delivery system technologies, we recommend beginning the eMarketing process by first determining an acceptable Cost Per Acquisition (CPA.)

To determine this, we use a simple formula, which should be adjusted according to your business accounting practices.

Once an acceptable CPA is determined, then eMarketing budgets, strategies and goals can be set.

When determining the CPA, it is important to be realistic.  Of course everyone wants a $0.00, CPA, but that is not realistic. It is best to start with a CPA that fits with in your profit margins and growth forecasts.

Assuming the CPA above is acceptable we can establish a budget for a comprehensive eMarketing plan. 

Let us assume we need to sell 1000 units per month to meet a 20% sales growth.  Based on the CPA, we should allocate an eMarketing budget of $100,000.00.

A comprehensive eMarketing plan, should include the following items.

1) SEM  - Search engine marketing, which generally utilizes Pay Per Click technology.

• Google
• Yahoo
• Msn
• Ask

2) BAAM Blog advertising and marketing

• Blog Ads
• Pay Per Post
• Off site content building

3) PWM  Paid web marketing

• Vortals
• Press releases
• Topic and geo target advertising as appropriate to product.
• SMO networks (Myspace, Youtube, Friendster, Linkedin)
• Email sponsorships in topic specific newsletters
• Affiliate marketing
• Other (Classifieds, contextual adverting, etc)

4) SEO : Search engine optimization

• On page SEO
  • Architecture, Title, meta, copy adjustments
• Text Ads (Not text links)
• Directory submissions
• Off site blogging
• RSS distribution
• SMO (Manual bookmarking of target pages in social media networks)
• Free classifieds
• Message boards, forums, etc

5) Customer retention (CR)

• Email marketing to opt in subscribers and past customers
• Incentive programs (Discounts, gift certificates, special offers, etc.)

Before allocating dollars to each segment, we also need to consider production costs.

1) Creative concepts

2) Creative production

• Landing pages
  • Visual Creative
  • Copy
  • Trust  Certificates (SSL notices, Membership in relevant associations, etc.)
• Off-site creative
  • Text ads (copy writing)
  • Tile ads - static, animated (gif / flash).
  • Audio / Video (Podcasts / Web commercials)

3) Execution

4) Performance analysis and reporting

Given these variables, our budget might look like this:

Now that we have a budget, it is a matter of creative production, execution, management, and analysis.

In the simplest terms, you can determine the VALUE of eMarketing based on whether or not you are achieving your CPA. If you achieve your CPA, then your eMarketing is effective. If you do not achieve your CPA, then your eMarketing is not effective, and should be analyzed in depth and adjusted accordingly.

However, to be comprehensive, other business function must also be calculated into the value determination such as sufficient sales staff, fulfillment infrastructure and reporting and accounting technologies. If one or more of these business functions is insufficient then your CPA and budgets should be adjusted accordingly. As a rule of thumb, start small and increase accordingly.