Media Magic Weblog

While the goal of this blog is to discuss new and emerging types of media and how they relate to the overall Integrated Marketing Concept, this week I challenge readers to explore ways to tap into the magic of traditional concepts such as TV advertising, radio, newspaper and direct mail.

Is it wise for companies to utilize new media only? Can a new company survive and get the word out without the help of radio, TV or print? It certainly seems that with today’s limited marketing budgets a company can get more “bang for their buck” with online advertising vs. television advertising.

Let’s compare a: 30 TV spot to a banner ad.  According to Forrester Research:

:30 TV Spot

Actual Cost: $4,000 to $5,000    

Cost Per Thousand: $12 to $15

Web Banner Advertisement:

Actual Cost: $1,000 to $5,000      

Cost Per Thousand:  $5 to $50

This research would lead one to believe that it is much more cost effective to utilize the web than traditional cable television. However, let’s look at a company that was already established online through banner ads and e-mail campaigns, and chose to get the word out to the masses through radio and television: http://eharmony.com/

 

eHarmony established a new category within an online market that many considered to be dominated by two well-established Internet brands in Match.com and Yahoo.

eHarmony took 18 months to gain its first 100,000 users which came mainly through Internet marketing. However, eHarmony got its first major growth spurt by being featured on a Christian radio program, Focus on the Family hosted by James Dobson, resulting in over 100,000 registrations in just a few weeks.

eHarmony gained scale by making use of TV and radio advertising, growing from a $10M per year business to a $100M+ per year business. They received immediate returns on TV commercial campaigns and re-invested those profits into more TV commercials. They spent 2000, 2001, and 2002 proving the success of the product and the user operating metrics to justify increased spend on marketing.

 Greg Waldorf, early investor and current CEO of eHarmony believes that the main key to eHarmony’s success was that quite simply, the service works. eHarmony produced a large number of success stories (marriages) for its users, which fueled the positive word of mouth amongst consumers.

eHarmony generated a good amount of PR once it began producing real success stories for consumers. This was not PR manufactured by putting out a press release and targeting media outlets. These were real people that wanted to tell their stories on TV, radio, and print. eHarmony made for a great human interest story.

 

 

 

I guess the right combination of traditional techniques and emerging media will be…An Everlasting Love.