Is traditional marketing dead? Sort of.
There will always be a place for traditional marketing such as direct mailers, newspaper ads, etc……but using traditional marketing as your only source of marketing is as dead as the companies that continue to stubbornly refuse to embrace the internet.
It's like being alive in 1925 and still thinking automobiles are just a fad.
Proves ROI for Your Marketing Dollars
Online marketing, especially when using Marketing Automation, will let you track a user from the moment they click on a specific marketing campaign you are running……..all the way until they become a paying customer. Sometimes this will all happen in a matter of minutes, other times it will happen in a matter of months. It gives you a clear picture of how your online marketing campaigns are impacting your revenue.
When you run a television commercial or a radio spot, how do you prove ROI? If you're like most business owners, you hope for an uptick in business following the ad campaign and attribute any additional business to that campaign. If you have a direct marketing mindset, you may include channel specific offer codes, which will give you, at least something you can track
But what if you have an extended sales cycle? How do you trace a sale today back to a specific television ad you ran 6 months ago? You can't. With online marketing, you can.
71% of companies planned to increase their digital marketing budgets this year – Webbiquity (2015)
Better Matches Consumer Behavior
Traditional marketing is also known as interruption marketing. Just when somebody is very engaged in an activity, like reading an article or watching a TV show, you “interrupt” them with your ad, which they often find non-relevant and annoying. Consumers today are very savvy, they do not want to me marketed to, they want you to be there when they are ready to see what you have to offer.
Well run online marketing campaigns place your business in front of a consumer at the moment they show interest in what you have to offer. They are the most engaged at this time and offers you the perfect opportunity to introduce them to your brand and the value you can bring to them.
Online marketing allows you to reach consumers when they show signs of buying and the most open to your marketing messages.
Adults 50 years old and above represent the Web's largest constituency, comprising one-third of the total 195.3 million Internet users in the U.S. – Abobe CMO 2014
More Cost Effective
Two things make online marketing very cost effective compared to traditional marketing.
Search Engine Optimization. 90+% of consumers do research online before making a purchase. Search Engine Optimization (SEO) is a marketing method where you get your website ranked high in the search engine results. Once you get your rankings, you do not have to pay each time someone clicks and visits your website. A quality SEO campaign can produce tens of thousands of visitors each month to your website for free. It's like paying for a television commercial once and then having it run free of charge for the next 3 years.
Targeted Marketing. Would you rather pay for a magazine ad based (and priced) on it reaching 50K people, but only 100 of them may be interested in what you have to offer, or would you rather just pay to market to those 100 interested people? That's the difference in spending $300 on a targeted online ad campaign vs paying thousands of dollars for a mass advertising campaign that reaches the same amount of interested people.
SEO leads have a 14.6% close rate, while outbound leads (such as direct mail or print advertising) have a 1.7% close rate. – Search Engine Journal
With mass advertising, you create a single marketing message for everyone. Not really an effective strategy. People buy your products for different reasons, online marketing allows you to create different marketing messaging for each of your different customer segments. Why highlight how cost effective you are to your wealthier customer segment who are more interested in your higher end features?
Online marketing allows you, all the way down to a one on one level, to communicate with your customers with the benefits they find most valuable. This type of marketing segmentation creates more relevant marketing communications and higher conversion rates.
60% of all Internet activity in the US originates from mobile devices and about half of total Internet Traffic flows through mobile apps. – CMOcouncil.org
Real Time Results
A good marketing strategy isn't something you create once, it's something that is continually improved upon over time. Online marketing allows you to see the results of your campaign in real-time, allowing you to make changes on the fly based on the data coming in. If you see something working very well, you can double down on your winner and drop your losers without having to wait until your entire ad budget is gone.
With mass advertising, television ads and direct mailers, you have to try and get it right the first time as there are no changes once production starts. Online marketing allows you to be nimble, making changes as you go so everything isn't riding on getting it right the first time.
72% of marketers think branded content is more effective than advertising in a magazine; 69% say it is superior to direct mail and PR. – NewsCred (2014)
Campaign Testing and Optimization
One fo the greatest benefits of online marketing is having access to a wealth of data, helping you make smarter marketing decisions. Testing your marketing campaigns, using multiple variables, can help you determine the right message that resonates with your potential customers.
Split testing, also known as A/B testing, allows you to test different headlines, offers and designs to see which ones consumers are responding to (and which ones are turning into revenue). These side by side, real-time comparisons allows you to make decisions faster and save you from wasting money on poor performing ads. The nice part is that they are run simultaneously, on the same audience, so there is little bias in the results. It would be like running two newspaper ads side by side at the same time to see which one people respond better to and dropping the poorer performing one without having to pay for it.
Content marketing in 2015 generates 3 times as many leads as traditional outbound marketing, but costs 62% less – Hubspot
Most traditional advertising options are local or regional in nature, unless you are a major brand and can pay for nationwide coverage. So you have to pick and choose your markets. With online advertising, you can segment locations all the way from the entire country (or planet), down to a specific neighborhood in a city. You can choose specific cities across the country or even specific neighborhoods in each city.
This slicing and dicing of where you want to advertise allows you to advertise only in the areas that will give you the most bang for your buck, without the waste. It's like being able to choose only the cable channels you want to watch, instead of paying for a bundle with hundreds of useless cable channels.
Nurtured leads make 47% larger purchases than non-nurtured leads. – The Annuitas Group
Better Targeting Options
With traditional advertising, you will usually get vague, generic demographic data like gender, age and income information from the media outlets selling these ads. While it gives you a general idea of who is reading or watching, it doesn't necessarily give you detailed information or signs of interest or buying intent.
Two things you can do with online advertising that you can't do with traditional advertising:
- You can run Pay Per Click ads, where you only pay whens someone searches for what you are offering and then clicks on your ad, which leads them to your website. This is advertising based on buyer intent (I want to buy), which is what the entire Amazon.com platform is built on, people searching to buy stuff.
- You can create highly targeted ad campaigns based on demographics, interests and behaviors. Facebook is the king fo this so I will use them as an example. With Facebook, I can run a specific ad campaign (I'm a motorcycle dealer) that targets males aged 40-55, that live in Charlotte, NC that are belong to one or more motorcycle member groups and have purchased a motorcycle in the last 3 years. I can actually dial down a lot tighter than in this example, but you get my point.
97 percent of consumers go online to research products and services locally – BIA/Kelsey
More Interactive With Consumers
People want to engage with the companies and brands they love, not read one-way marketing messages. Online marketing allows consumers to engage with brands in a way traditional marketing cannot do. You can speak to your customers directly via social media or answer questions from potential customers. You can offer visitors to your website free downloadable guides or free tools they can use to help them make smarter buying decisions.
The ways you can engage your customers and potential customers are endless and gives you the opportunity to deliver value to people on an individual level. This type of personalized experiences is what consumers love and what they are coming to expect from all of the companies they do business with.
79% of marketing leads never convert into sales. Lack of lead nurturing is the common cause of this poor performance. – MarketingSherpa
It's the Present and the Future
The internet is here, online marketing is here. It's only going to become more so in the future as people move more and more from paper and scheduled viewing to bytes and on-demand viewing. You be hard pressed to find anyone with a traditional Yellow Pages book in their home (under 75) just as you ar finding less and less people subscribing to cable television.
People want to read, watch and buy when they want and how they want. The internet is the only medium that lets companies reach these people when they indicate they are interested.
37% of B2B marketers are using marketing automation to generate leads
So, is traditional marketing dead?
No, it's not dead, it actually can play a very important role as part of a bigger marketing strategy that uses online marketing as its cornerstone.
The most important thing is to understand where consumer behavior is heading, which is online, and to make sure your company's marketing strategy is evolving along with the times and that your marketing dollars aren't destined for the recycling bin.
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