Web Marketing Return On Investment

Working on a startup is fun since you have to create everything. We are continuing to work on our Return On Investment (ROI) model for DigiFutures web marketing campaigns. Specifically we are trying to show cost justification of internet advertsing campaigns like Search Engine Marketing (SEO)and Paid Per Click (PPC) to novice internet advertisers. It is obvious to us , but trying to make the case to those folks still stuck in the traditional media model is a challenge. We have come up with a model and a chart which nets it out to two pieces of data:

1- how much did one spend on a medium Web verse Traditional
2-total revenue from repeat customers aquired by each channel

The bottom line is dramatic. The ROI from the internet as a marketing channel is over 600% ROI which is almost twice the ROI numbers from direct media. Which would you invest in? We are creating a data sheet to publish for those intereseted in seein the details.
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Online vs OffLine Results

As we start building the business within the small to medium business sector it amazes me the amount of opportunites that exist. Today we had a call with an electrical contractor which is spending millions on traditional media yet has no optimization efforts or paid internet marketing other than ad ons to yellow pages. For example for one services company we get a hand full of calls a week or about 20 a month at a cost of $2000 per month so our cost per call is $100 per call. While on the web with an online ad provider Paid Per Click (PPC) Campaigns our cost per call is only $17 per call. It makes you wonder why organizations continue to pour money into less effiecient advertising programs.
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