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Ad Spend Per User

Posted by Michael Bloch in web marketing (Sunday July 21, 2013 )

How much are advertisers collectively spending to reach each US online user annually?

US advertisers spent an estimated $144 (in nominal dollars) reaching each online user last year.

It’s a big jump from the $36 per user spent in 2002, which was due to the effects of the dotcom bubble bursting and other economic woes. Back in 2000, $67 was being spent on each user.

If you thought that was a lot; TV still rules the roost – with advertisers spending around $225 per viewer.

More related data can be viewed on MarketingCharts.

I’ve often wondered how much better off companies would be if they diverted more advertisign cash to keeping customers rather than acquiring them.

In Australia, energy companies spend a bucketload on acquiring new customers – but the churn rate is horrific due to shocking service. Part of my work is in the renewable energy industry and I think it would be fair to say when choosing an energy provider; it’s basically down to picking the best of a bad bunch. The telecommunications sector isn’t all that far behind the energy sector when it comes to keeping customers happy.

This is where small business can have a distinct advantage. While the big guys spend oodles of time and money on trying to come up with clever banner ads and then distributing their often bleh creatives; the little guys can use one of the most powerful promotional tools of all; word of mouth – and that comes from happy customers.

It isn’t all that hard to keep folks happy if you keep one simple thing in mind – under-promise and over-deliver. If you say you ship things out within 48 hours, strive to do so within 24. Include a cheap little bonus with orders, follow up with customers personally, provide coupons – there’s really a lot you can do that doesn’t have to cost the earth in terms of cash or time.


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