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Click Frenzy fail: Retailers spend over $1 million on ads

Wednesday, 21 November 2012 | By Patrick Stafford

Advertisers who have collectively spent more than $1 million on advertising for the Click Frenzy discount event will no doubt be questioning their decision after the campaign's site crashed last night after failing to handle the massive influx of traffic.

 

Some retailers are already questioning whether the deal was worth the spending. Adore Beauty chief executive Kate Morris told SmartCompany today she hasn't recouped her advertisings costs, and is "extremely disappointed" with how the sale went.

 

That sentiment is likely to be echoed across the retail industry today.

 

Based on advertising rates seen by SmartCompany, and the number of brands taking part in the deal, Click Frenzy is estimated to have taken more than $1 million for the campaign.

 

Some companies have likely spent more than $50,000 and close to $100,000 in their pursuit of consumer dollars.

 

The campaign has seen 197 brands take part, each paying a basic set-up and listing cost of $1,500 plus GST. That comes in at a total cost of $295,500 just to be involved.

 

However, many retailers paid over and above the minimum to purchase advertising on the site.

 

Based on a combination of basic listing fees, banner advertisements, carousel ads, and "premium deal" rates on category websites, SmartCompany estimates spending is at least $1 million – taking into account discounts and unfilled advertising space.

 

Expedia, Roses Only, BrandsExclusive, Quickflix and Masters have spent anywhere between $2,000 and $5,000 for banner advertisements, but the real money is on the home page.

 

There, companies including Bing Lee, Dan Murphy's, Booktopia and Toys 'R' Us have spent $30,000 on featured deal advertisements, while Westfield and Chemist Warehouse have spent another $30,000 each on "premium deal" advertisements.

 

Also on the home page, Myer, Chemist Warehouse and Westfield have paid to be featured in the carousel. A price isn't listed for this advertising category, but an estimate would place the cost anywhere between $50,000 and $100,000.

 

That means Westfield could easily be spending over $100,000 for front-page advertising alone.

 

The figures continue into each individual category page. For example, on the books, music and movies category page, Booktopia, WowHD and EzyDVD have all paid $5,000 to be featured at the top of the page.

 

Below them, BookWorld has paid for two more ads, along with the Co-Op Bookshop and QBD. Each paid $3,000 for their ad. That comes alongside even more spending from companies across categories. Travel company Expedia, for example, has spent thousands of dollars on each banner ad that appears across several category pages.

 

None of this includes individual deal listings, which cost $750 each and are discounted if a retailer buys 10 or more.

 

This story first appeared on SmartCompany.