Inbound Marketing Costs Less than Outbound Marketing; Growing in Importance too
Source: http://www.marketingcharts.com/direct/inbound-marketing-costs-less-12762

Marketers who spend more than 50% of their lead generation budget on inbound marketing channels report a significantly lower cost per sales lead than those who spend 50% or more their budgets on outbound marketing channels, according to the “State of Inbound Marketing Report” [pdf] from internet marketing firm Hubspot.
Average Cost Per Lead $200 Less
The average cost per lead by inbound marketing-dominated firms in 2010 is $134. This is $198, or 60%, less than the $332 average cost per lead at outbound marketing-dominated firms. This percentage differential has remained consistent from a 61% higher average lead generation expense reported by outbound-marketing-dominated firms in 2009.
3 of 4 Major Inbound Channels Cost Less
When asked to rank each lead generation category as “below average cost,” “near average cost,” or “above average cost,” businesses consistently ranked inbound marketing channels as having lower cost than outbound channels. Only PPC (pay-per-click search) had overall cost rankings comparable to those given outbound channels.
Social media and blogs had the highest “below average cost” rankings for both 2009 and 2010 (55% as a combined category in 2009 and 63% separately in 2010).
Trade shows, with their requirements for travel and expenses, as well as space rental and booth setup/removal for companies who exhibit, had the worst cost rankings in 2009 and 2010. In 2009, 55% of companies said trade show costs were above average and only 18% said they were below average. These figures improved moderately in 2010 (48% and 22%, respectively), but still left trade shows as clearly the least cost-effective marketing channel.
Inbound Marketing Grows in Importance
Inbound marketing is continuing to grow in importance at the expense of outbound marketing, according to other findings from the State of Inbound Marketing Report.
As a percentage of the overall lead generation budget, inbound marketing expanded slightly from 2009 to 2010 (38% to 39%), while outbound marketing contracted more significantly (29% to 24%). The net effect is that the gap widened from inbound marketing, which had a 9% greater share of the overall marketing budget than outbound marketing in 2009, to a 15% greater share in 2010. Roughly one-third of the lead generation budget is considered “not classified.”
Cybercrooks Target Social Networks
Source: http://feeds.marketingcharts.com/~r/marketingcharts/~3/16mASWhC9kU/
Cybercriminals are turning their attention to users of social networks such as Facebook and Twitter, according to a new report [pdf] from IT security and data protection firm Sophos.
Spam, Malware Attacks on the Rise Sophos’ Security Threat Report: 2010 indicates criminals have increasingly focused attacks on social networking users in the past 12 months, with a [...]<img src="http://feeds.feedburner.com/~r/marketingcharts/~4/16mASWhC9kU" height="1" width="1"/>
Aardvark Publishes A Research Paper Offering Unprecedented Insights Into Social Search
Source: http://feedproxy.google.com/~r/Techcrunch/~3/IMDRrISRf-8/
In 1998, Larry Page and Sergey Brin published a paper[PDF] titled Anatomy of a Large-Scale Hypertextual Search Engine, in which they outlined the core technology behind Google and the theory behind PageRank. Now, twelve years after that paper was published, the team behind social search engine Aardvark has drafted its own research paper that looks at the social side of search. Dubbed Anatomy of a Large-Scale Social Search Engine, the paper has just been accepted to WWW2010, the same conference where the classic Google paper was published.
Aardvark will be posting the paper in its entirety on its official blog at 9 AM PST, and they gave us the chance to take a sneak peek at it. It’s an interesting read to say the least, outlining some of the fundamental principles that could turn Aardvark and other social search engines into powerful complements to Google and its ilk. The paper likens Aardvark to a ‘Village’ search model, where answers come from the people in your social network; Google is part of ‘Library’ search, where the answers lie in already-written texts. The paper is well worth reading in its entirety (and most of it is pretty accessible), but here are some key points:
- On traditional search engines like Google, the ‘long-tail’ of information can be acquired with the use of very thorough crawlers. With Aardvark, a breadth of knowledge is totally reliant on how many knowledgeable users are on the service. This leads Aardvark to conclude that “the strategy for increasing the knowledge base of Aardvark crucially involves creating a good experience for users so that they remain active and are inclined to invite their friends”. This will likely be one of Aardvark’s greatest challenges.
- Beyond asking you about the topics you’re most familiar with, Aardvark will actually look at your past blog posts, existing online profiles, and tweets to identify what topics you know about.
- If you seem to know about a topic and your friends do too, the system assumes you’re more knowledgeable than if you were the only one in a group of friends to know about that topic.
- Aardvark concludes that while the amount of trust users place in information on engines like Google is related to a source website’s authority, the amount they trust a source on Aardvark is based on intimacy, and how they’re connected to the person giving them information
- Some parts of the search process are actually easier for Aardvark’s technology than they are for traditional search engines. On Google, when you type in a query, the engine has to pair you up with exact websites that hold the answer to your query. On Aardvark, it only has to pair you with a person who knows about the topic — it doesn’t have to worry about actually finding the answer, and can be more flexible with how the query is worded.
- As of October 2009, Aardvark had 90,361 users, of whom 55.9% had created content (asked or answered a question). The site’s average query volume was 3,167.2 questions per day, with the median active user asking 3.1 questions per month. Interestingly, mobile users are more active than desktop users. The Aardvark team attributes this to users wanting quick, short answers on their phones without having to dig for anything. They also think people are more used to using more natural language patterns on their phones.
- The average query length was 18.6 words (median of 13) versus 2.2-2.9 words on a standard search engine. Some of this difference comes from the more natural language people use (with words like “a”, “the”, and “if”). It’s also because people tend to add more context to their queries, with the knowledge that it will be read by a human and will likely lead to a better answer.
- 98.1% of questions asked on Aardvark were unique, compared with between 57 and 63% on traditional search engines.
- 87.7% of questions submitted were answered, and nearly 60% of them were answered within 10 minutes. The median answering time was 6 minutes and 37 seconds, with the average question receiving two answers. 70.4% of answers were deemed to be ‘good’, with 14.1% as ‘OK’ and 15.5% were rated as bad.
- 86.7% of Aardvark users had been asked by Aardvark to answer a question, of whom 70% actually looked at the question and 38% could answer. 50% of all members had answered a question (including 75% of all users who had ever actually interacted with the site), though 20% of users accounted for 85% of answers.
AT&T Underinvesting in Infrastructure


If you like your links hyper, here is that AP story, AT&T’s financial sheet [PDF], and the post in which Fake Steve Jobs originally pointed out this disparity. Namaste.
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