Re: UKNM: Cost Of Capture

[Azeem Azhar]

In practice acquisition cost is fairly hard to gaugue because of

word-of-mouth effects and other messy things like that.


It's also hard to assess the effect of messages over time.


Your definition seems reasonable for a media-based site. It would be easier

to track if you look at


(1) specific referrers for portal or distribution deals (i.e. you look at

the tenancy you are paying AOL and then specifically look at the number of

people it is driving)


(2) code your URLs, so if you run an ad in the Guardian, put the url as:

http://guardian.mysitewhatever.com/ and track those


Of course, it can be fairly easy to assess if you are simply paying for

performance. (e.g. paying Freeserve a $1 for every visitor they send you).

Then you can plan exactly your acqn costs and just roll in the fixed costs

of running the marketing team.


In practice, acquisition costs for web businesses run as low as close to

zero (hotmail in its first 18 months, ICQ) to thousands of dollars (some

B2B sites; financial services). General consumer sites are in the low tens,

but sites like these have seen their acquisition cost rise dramatically as

the market overheats.

a


At 11:02 am +0000 31/12/12, Peter Howard wrote:

 >Hi All

 >

 >I would like to understand how people define the cost of capture and what

 >is a reasonable range of numbers.

 >

 >For example, the cost of capture could be defined as the total promotional

 >spend in one month divided by the total number of new visitors in the

 >following month or it could be the total promotional spend to date for a

 >company divided by the number of regular users.

 >

 >Although people may be using different definitions, I've seen cost of

 >capture figures quoted anywhere from 5c to $50.

 >

 >Peter


azeem azhar, eSouk.com			| wwww http://www.eSouk.com/

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