What’s better website hits or customers?

Go Daddy ran two Super Bowl ads this year to drive traffic to their website. I commented last week on the use of Danica Patrick in that campaign. Go Daddy does not release the traffic figures the ads generate, and we can assume it is a lot. It is safe to assume that some of those people sign up for Go Daddy services or they would not be running the ads anymore. However, I would be surprised if they got 2,000,000 hits on their site.

Denny’s on the other hand is estimated to have given away 2,000,000 free Grand Slam breakfasts again this year based on their Super Bowl ad offer. Not a fair comparison you say because Denny’s had to pay for those free meals. Maybe not. Could be that free meals are a self-liquidating offer.

The actual cost of a Grand Slam breakfast has been estimated at about $1.80. This amounts to $3,600,000 in cost. However, beverages are not included in the free offer. The sales of beverages to those diners have been estimated to generate a profit of close to $3,200,000. This suggests that Denny’s got 2,000,000 people to actually try their product for about 80 cents a person.

Seems like a pretty low-cost to get someone to actually sample the product. Assuming customers liked what they ate, many will be back. Since they did the same thing last year, we can assume it worked. If you could get target customers in droves to pay your costs to sample your products or services, how far ahead would you be?

Mitch

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