Thoughts on Marketing Spend & Online Retailers

Good morning,

I had a very interesting conversation with a client yesterday regarding marketing spend for their business and how to get the best (ROI) Return on Investment.

In my initial conversation with this e-retailer, I shared with them that depending on the business or niche the e-retailer is competing in, the marketing spend will vary from business to business. There are online retailers out there that have no business spending their marketing capital on Pay Per Click marketing, yet every month, they pour hundreds, if not thousands of dollars down the “PPC toilet” hoping to get a better ROI each month, not understanding that PPC marketing may not necessarily be the way to go. In other instances, there are certain online retailers where starting an affiliate marketing program is the best way to go, but if you don’t understand the dynamics of launching and starting an affiliate program, you may very well fail without the proper support and guidance.

Look At The Statistics

However, there is still some decent-hard core data that points to the facts that certain marketing channels on the web still seem to be popular among online retailers and that definitely still have a positive affect on their bottom line. Internet Retailer posted some interesting statistics concerning trends in marketing spend amongst retailers. I’ve included my own snapshot below with a link to the information I am quoting from IR:

How E-Retailers Divvy Up the Marketing Budget 

Paid Search: 30%
Email: 16%
SEO: 11%
Affiliate Marketing: 7%
Comparison Shopping: 5%
Retargeting/behavioral Targeting: 4%
Social Marketing: 4%
Dont Know: 23%

Link to article:


As you can see, Ad Spend is the largest, yet its one of most complex channels to not only navigate in but succeed in. Email came in dead second and its obvious as to why; the proper ethical email campaign can add up to 15% to an online business bottom line, its very inexpensive and if used properly can help build a positive rapport between you and your customers. SEO came in 3rd and a reason why it probably came in 3rd place is because it requires resources and work and the results take a little while to show, but when the results do come in and you begin ranking on the 1st page of a Search Engine, all the hard work begins to pay off in $$. Affiliate Marketing and Shopping Comparison came in last and I have my suspicions as to why, but I will leave my thoughts on these two topics for my next post.

Are You frustrated?

As an e-commerce consultant in Miami, Florida, I get a lot of different calls, from different merchants either starting their business online or with inquiries and questions about how to better their frustrating situation with their online business. Needless to say, don’t wait until your frustrated, broke and upset to call someone like me. Our firm has attained over a 90% success rate with our clients and our formulary for online success and customizing a strategy that fits your unique situation is something we are very good at. Contact me today at 305 389 8955 or email me at

To your success,

Emilio Yepez
Internet Marketing Consultant & Affiliate Program Manager
305 389 8955


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