1. Shifting marketing dollars to performance-based channels – email, paid search, affiliates, & search engine optimization (SEO).  The latter wouldn’t require much of an incremental investment if people simply adhered to the principles of good copywriting & building structurally sound web sites.  SEO is not that simple, but those 2 sure cover a lot.
2. Realizing the rise in average cost-per-click on search engines was up higher than it should have been.
3. Considering investing in things that will improve conversion, user experience, & customer service.
4. Determining how to best reach customers on a more micro level (customized & more personal interactions)
5. Asking you to do more with less.

If none of this is going on, I would say you are either extremely lucky or in big trouble.  The former because you (& your client) are then, somehow, isolated from the current economic factors.  The latter because your client is considering bringing things in-house or are talking to other, cheaper, agencies.  Or it could be because you simply suck…I know a few agencies that fit that bill.

As a Friday bonus, I’ve included a translation of the above for the cynics…

1. The byproduct of performing your necessary due diligence.
2. Digging a bit deeper to understand the cause of rising costs.
3. What you should’ve been doing all along…how dare you treat your existing customers like commodities.
4. Building & maintaining loyalty in an increasingly competitive space.
5. What most like to call Doing Your Job.

Related Posts

• Retailer Nexus & The Advertising Tax
• Help Us, Help You – Getting Yourself Connected
• Bad Email Marketing

Your next steps are to…

• Use your online analytics to identify which states (or larger geographical area) generate the most sales. 
• Combine sales & costs data.  Search engines can give you impression, cost, & click data by state.  Mesh these results & voila, you have yourself some nice, segmented data with which you can make educated business decisions.
• Make difficult decisions.  If you are a nationwide &/or an international retailer, you may need to cease advertising in retail trade areas.  This might not be wise since just about everyone uses search to find out, among other things, where your offline stores are.  Not everyone clicks on the natural search engine results.

Now that holiday shopping is in full swing, those year-over-year CPC increases are going to rise even more.  With the current state of the economy & many etailers cutting budgets in the face of decreased sales, your job as an online marketer is to help mitigate risk & add to the bottom line.  Many retailers are going all out with aggressive promotional strategies; this cuts into margins.  Smaller margins & increased customer acquisition costs do not go over well with senior management & investors.

Related Posts

• 5 Things I’m Sure Your Clients are Thinking or Doing
• What Are Your Holiday Plans?