Internet marketing has gained popularity in recent years, accelerated further by the current economic climate. Internet marketing is more targeted and measurable than traditional advertising. However, recent research data shows that telemarketers can convert almost 60% of calls into sales leads by using customized templates and scripts for specific customers. Additionally, telemarketing can qualify the customers before setting up the appointment by asking a few questions unlike internet advertising where it is not as easy  to qualify the user based on a click to your website.

The good news for online advertising is that the advertiser can choose to pay for performance where you can choose not to pay for the number of times that the ad appears on a particular site online but pay only when the user clicks on your ad and lands on your website.  This helps reduce the “marketing waste” and reminds us of  John Wannamaker’s quote which is so relevant today “I know half of my marketing dollars are wasted…I just don’t know which half!”.  On the other hand, the purpose of telemarketing is to make calls, qualify business leads and setup appointments for your sales team to close them into sales. Telemarketing companies get paid on number of calls made and not number of appointments setup. This has made it difficult for them to compete with internet marketing based on the “pay for performance” message that is so heavily used by internet marketing companies to shift more dollars online. But, if you are looking to target a specific customer such as the 14.6 million US small businesses or consumers with household incomes of $100K+ it may be more cost effective and easier to do so with telemarketing than online marketing.

Online marketing has gained more popularity because it is non intrusive compared to telemarketing that is often considered intrusive specifically when it comes to targeting individual consumers. The government has also passed several regulations including the “Do-Not-Call” lists so that consumers can register their phone numbers if they do not want to receive intrusive calls from telemarketers. However, telemarketing companies are still very much in demand when it comes to qualifying and targeting business leads and setting up appointments with business owners and decision makers.

Online marketing provides marketers with several options such as search engine marketing, search engine optimization, banner advertising and social media marketing. Each of them serves a different purpose depending on whether the marketer’s objective is to looking for a direct response or create an impression. It is important for every marketer and business owner to better understand the sophisticated internet marketing solutions and practices before allocating marketing budget to them or you will overspend and waste half of your marketing dollars on them. In comparison, telemarketing is very simple as its purpose is to make calls, qualify business leads, setup appointments and fill the sales pipeline so that the sales rep or account executive can  follow-up and close the sale.

To conclude, online marketing and telemarketing are both effective. But, its important for marketers and business owners to know their marketing objective, understand the various options and select the one that will best address their specific business needs.