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Google Argues It's More Effective For Retail Marketers

  • Bloomberg, Friday, December 9, 2005 10:15 AM
It might come as little surprise that Google executives believe Adwords is a better investment for retail marketers than say, a print magazine, but their logic, as ever, is hard to argue with. John Rosenberg, Google's vice president of product management, gives an example. If you're selling $1,000 Prada handbags, you'll probably spend about 28 cents for each user that clicks on the ad. That actually costs almost three times as much per user as a full-page ad in a magazine like Vanity Fair, which, at $110,000 with a circulation of 1.1 million, costs roughly 10 cents per reader. Rosenberg argues that that Prada ad may or may not be seen by a consumer reading the magazine, while the more expensive pay-per-click ad brings the user to a page where they can immediately buy one. That, folks, is tough to argue with.

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