Targeted Efforts Replace Mass Advertising for Hi-Tech Start-Ups
By Michael Bush, Senior Reporter

Oct. 17, 2001

Marketing budgets among 30 hi-tech start-ups increased 27 percent in absolute dollars from $2.2 million in 2000 to $2.8 million this year, according to a study released yesterday by hi-tech communications company Launch Pad.

Marketing's share of total spending fell to 15 percent from 20 percent in 2000. Launch Pad, San Francisco, interviewed marketing executives from more than 30 hi-tech companies throughout North America.

As marketing's share of total spending has declined, the study said, companies have cut back on their mass marketing efforts in favor of more smaller, more targeted programs. According to Launch Pad, online advertising investments fell 72 percent and print advertising programs declined 44 percent among surveyed companies, while direct marketing programs increased an average of 300 percent for online and 150 percent for off-line.

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