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Comparison of marketing channel effectiveness and cost (SMS, email, print & billboards)

Comparison of marketing channel effectiveness and cost (SMS, email, print & billboards)

Comparison of marketing channel effectiveness and cost (SMS, email, print & billboards)

The most common method to compare campaign effectiveness are so called CTR (Click Through Rates) which indicate the share of cutomers who clicked on a message after seeing it. An alternative common indicator is the CPA rate (Cost Per Action / Cost Per Acquisition) which indicates the campaign cost for achievig the desired goal (formula: [total cost of campaign] / [number of actions]).

We chose to compare the most common from the marketing mix and looked at the averages accross industries.

Common marketing channels

Web Banners

is a graphical form of internet advertising (imagine an internet billboard). A banner can be a static picture, the most common are animated banners which catch the attention of potential customers better.


is a powerful marketing tool. Using marketing SMS messages allows rapid distribution of messages directly into the hands of customers, onto the device they spend the most time looking at – their mobile phone. Aditionally the messages can be personalized using e.g. unique coupons or other personaliziers to achieve even more impact, and percisely targeted based on many customer attributes and by physical location.

Google AdWords

a very common online marketing solution popular among small and large companies. Allows the presentation of advertising in the online world based on serach criteria / interests of customers.


similar concept as SMS, however less powerful on physical world targeting and immediate delivery.


flyers, article adverts, magazine inserts which are popular among readers


large, hard to miss, which have somehow managed to retain a high market share in the developing or newly developed countries such as Slovakia.


Table: Comparison of marketing channel effectveness and cost (SMS, email, print & billboards)

Banners 0,66% 56 eur
SMS 5-7% 20 eur
Google AdWords 1,9% 52 eur
Facebook 1,5% 40 eur
Email 1-4% 16 eur
Print 4% 37 eur
Billboards N/A 28 eur


Table: SWOT of marketing channels

Strengths Weaknesses
Banners Possibility to publish on various pages, good graphical possibilities, animations catch the attention of users. They righly deserve their spot in a companies marketing mix online. High CPA and low effectivity, comonly paid by number of impressions. Only available when a person is online, and only for web based customers.
SMS Very specific targeting, ability to create fast & flexible campaigns for the physical world, no need for internet connectivity (delivered no matter where you are and independent on internet connectivity). Possibility to deliver based on current location LBS (Location Based Services). Almost guaranteed impression, does not fall into spam. Possibility to measure click rates and / or use of unique codes. “Twitter-like” need to be creative with text creation due to the short text availability. Interesting information should be contained in initial 50 characters.
Email Possibility of highly creative, visual & text email with almost no limitations. Antispam technology, automatic categorization of emails which cause very low impresion / open rates. Customers are inundated with emails and creating a powerful subject is key to at least some success.
Print Newspapers and magazines cary a form of prestige, have high visibility and are widely accepted. No guarantee of where the ad will be placed. Need to plan weeks or months in advance.
Billboards Out-of-home carriers have a very permanent & repetitive effect. Many are out of sight, always need to purchase a broad mix of billboards, long preparation cycle. Very unpopular among the general public.
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