Facebook is the New AOL
I recently went to a Social Media event in Knoxville, Tennessee. At that event, I was thrilled to meet Jay Baer, one of the foremost Social media strategy consultants, a coach and speaker. Jay is the man behind ConvinceandConvert.com. If you don’t follow him yet, sign up now.
This post is largely taken (with his permission) from his presentation in Knoxville.
Starting in 1992, America Online (AOL) spent more than $300 million sending floppy disks and later CDs to U.S. households, to entice citizens to sign up for their dial-up Internet connection service. (Don’t we all remember getting those disks? My boys used them as tiny frisbees and loved to find ways to break them..)
At one point during that period, more than 50% of all CDs created in the world were for this AOL campaign, and the company spent an eye-popping 10% of lifetime customer value (LTV) on customer acquisition – $35 for each new customer worth an average of $350.
