With online advertising costs rapidly increasing as larger companies begin to advertise on the web, some longtime online advertisers are turning to offline advertising to sell their products and services - and they're finding success - writes the Wall Street Journal. 1-800-Flowers.com was the first merchant to join with AOL to sell and promote its service 12 years ago and has since spent millions to reach online customers. But its latest campaign consists of billboards and posters promoting its Happy Hour bouquets of flower-filled margarita glasses.
1-800-Flowers.com's outdoor effort has resulted in a seven-fold increase in sales of the product during the first month, and it is now shifting ad budget toward traditional media, including TV, radio and print. Netflix, the fifth-largest online advertiser, spent more than $110 million online last year, but it launched its first TV ad in 2004 and has since been rolling out more. Online jeweler Blue Nile, with its paid search costs in 4Q05 having soared 50 percent, has begun testing radio ads.
And the cost of online advertising continues to rise: During 2005, prices increased by double-digit percentages on websites related to entertainment, sports, finance, health and news, according to aQuantive's Avenue A/Razorfish.