Survey: Customer Acquisition Most Effective Online

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A survey of marketing executives released yesterday found they see the Internet as the most effective medium for acquiring new customers.

Polling firm Millward Brown conducted the survey of 292 marketing executives across several industries for AOL's unit. Online scored just above direct mail in customer acquisition and customer retention. It also outscored all other media in efficiency rating, according to the survey.

Sixty percent of marketing executives said they expect their budgets to expand in 2005, with online marketing growing at a faster rate than traditional media. More than 80 percent of executives with annual marketing budgets exceeding $400 million expected their marketing spend to increase next year.

Within online, Web advertising was seen as the most likely area for increased spending in 2005, beating out search and e-mail. Web advertising was also tabbed as the online marketing medium that will grow the most during the next five years.


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