Rising Cost of Online Marketing

Matt Creer | 11 June 2007 |

Anyone remember the good ol’ days, when the Internet seemed like a vast ocean of advertising opportunities with only a handful of websites competing for space? When a “steep” directory listing only set you back $40 per year, and you could squirm your way into a top 10 placement in search engines for a mere pittance?

Anyone completely unfamiliar with the Internet and online marketing may assume I’m waxing nostalgic for a golden age that peaked 30 years ago. But, of course, the Internet didn’t even exist 30 years ago, and online marketing didn’t become so intense until the last half-dozen or so.

Technology sure speeds things up, doesn’t it? The fact that cost increases happened in such a hurry has left a lot of business owners shell-shocked and somewhat timid. After all, this was not a gradual progression in prices to keep up with inflation. This was a quick and significant spike that mirrored the rapidly increasing value of the Internet as a marketplace.

The more people began conducting their personal consumer transactions online, the more it cost to effectively entice them into choosing your company to do business with. And the range of tactics and resources necessary to compete has broadened considerably. This has been as evident within the travel industry as any other business niche.

Such a quick ascent into relatively high dollars is bound to strike some fear into the hearts of bed and breakfast, hotel, and property managers. A willingness to accept the financial truths of online advertising can be slow coming, as people let go of the past and come to terms with the reality of today’s Internet.

But no matter how hard you resist, you can’t get away from the fundamental truth of advertising that has existed as long as there have been items to sell, and that is this: It takes money to make money.

The real question is, “What return on investment are you realizing from your efforts?” Today’s successful online marketing campaigns utilize an array of techniques, including pay-per-click accounts, directory listings, SEO, press releases, online articles, e-mail newsletters, blogs, Web 2.0, and more. And that doesn’t take into consideration the various new opportunities that continuously arise every month.

Obviously, everyone has a budget, and only so much of it can be allocated toward Internet marketing. However, the business owners who see the highest return are those who allow us to aggressively pursue the entire breadth of potential resources. Almost without exception, the most lucrative plans are those that take advantage of every possible Internet advertising opportunity.