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STUDY OF DOT-COM MARKETING FINDS MAJOR IMPROVEMENTS
AdAge.com
News Source
2003-04-16
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NEW YORK (AdAge.com) -- Stamps.com topped the list of dot-com irrational exuberance in 1999 by plowing $98 into marketing for each dollar of revenue. Last year, it spent 15 cents on marketing for each dollar of revenue -- leaving enough money to pay for postage.
Disciplined marketing
After slashing expenses and learning to live on a budget, dot-coms have evolved from virtual jokes to real businesses backed by disciplined marketing. That should translate into increased consumer advertising.
As a new study conducted for Advertising Age by Pegasus Research International proves, dot-com is no longer a pejorative. The average dot-com spent a realistic 26% of revenue in 2002 on expenses related to sales and marketing. That's down from the high point (or low point) for dot-com mania in 1999, when the average dot-com spent $1.01 on marketing for every dollar of revenue.
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About the Author:
AdAge.com is the Web site of Advertising Age, the 73-year-old flagship magazine of the Ad Age Group, a division of Crain Communications Inc.
The Ad Age Group publishes two print magazines, Advertising Age and Creativity; two Web sites, AdAge.com and AdCritic.com; two HTML newsletters, The Creativity E-Mail and Madison+Vine; and the Ad Age E-mail Alert.
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