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I can't agree more with you. I think this is where a lot of e-commerce owners lose out in a massive way. Not just financially, but also branding.
A couple of years ago I have a client that had a online lingerie store. She was on a very limited budget at first because she pumped all her money into PPC.
After I sorted out her e-commerce store (all the site architecture and usability issues) I suggested something to her that was a little different to say the least.
We stopped the PPC and invested into getting the packaging that the items were sent out in, branded with the company name, logo and slogan then moved onto producing a catalog and flyer's when she had special deal on (like 10% of this product range etc etc).
The catalog would get left at work and flyer's passed on to friends and relatives.
It took about 2 months to implement all the changed but the response was absolutely incredible.
For what she was paying on PPC, she literally increased her sales by 130%. Every single person who came to the store offline was a buyer compared to 1 in 5 visitors from PPC.
KP
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SEO.com - Search Engine Optimists
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