New research from lifecycle marketing company Custora suggests that the market has a long way to go before more traditional advertising tactics can be abandoned in favor of social media marketing.
According to Custora, customers acquired via Twitter are worth 23% less relative to average, and Facebook brings in just barely average clients. How do those numbers compare to pay-per-click and organic search?
This is where it’s got to hurt for social networks and their loudest champions: PPC advertising brings in customers worth 46% more than average, and organic search brings in people worth a huge 54% more than the average customer.
Even e-mail marketing beats social media, with 12% more valuable customers.
That means that smart digital marketers absolutely cannot focus all of their resources on social.
Custora’s results are based on two years of data from 72 million American customers shopping at 86 U.S. retailers spanning 14 industries.
Basically, social networks have a long way to go to be nearly as lucrative as search engines are.
And with U.S. e-commerce sales now topping $200 billion annually, it’s crucial to be aware of where your customers are coming from, and how valuable each of those channels makes them.
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