If there has been a time for change in marketing, this is it.
“Achieving more with less” is the only marketing approach in the minds of CMOs across the globe. They all are seeking a wolverine that would help them reassure the maximum buck for their money. This is the time for the digital medium today!
In this environment digital space will be undergoing a rebirth of sorts. Most marketers will slash their marketing dollars; opportunity will have its doors wide open for digital space owners to go on a fierce onslaught of traditional media space. In these tough times not only will digital marketing survive, it may actually thrive during the lean times, continuing its inexorable theft of ad spends from traditional media tactics. The CMOs would need to believe that this medium is much more mature and proven.
The fact that digital marketing’s impact can be assessed almost real time and with limited investments will be its unique advantage. You don’t wait for a week to access TVRs, a click on Google analytics will tell you know how your consumers are interacting with your brand.
Well just like an Elizabeth Taylor marriage, Digital doesn’t require much long-term commitment! Pay for Performance ads can go up and down on a daily basis. Email and SMSs can be sent (or not sent) based on your dynamic marketing objectives. Even banner ads can usually be negotiated with an advantageous measurability clause. Try that with your favourite channel on TV or Press! Other than keeping your digital interface a web or wap page up to date, the only core digital tactics that require substantial ongoing effort are organic search optimization, and web site analytics and testing.
With diminished outbound marketing budgets, increasing revenue from current customers will be the focus, either through more frequent purchases, or larger ones. Digital marketing will be the perfect vehicle for communicating with customers and incentivising additional purchases. Customer life cycle marketing (persuasively combining email, IVR and text messaging) will gain favor as companies will strive to close a higher percentage lead closures.
The superior targeting ability of digital marketing will enable brands to focus their reduced marketing budgets solely on likely prospects. This will accelerate the trend toward use of behavioral targeting and retargeting in Digital ad placement. And the bonus will be very little financial waste associated with advertising to people who have no interest in a product or service.
Behavioral targeting will mine a user’s web page visits and search terms to serve relevant ads. If a prospect reads several pages on Yahoo! about a brand and does a search on Google using a related term, an ad for the brands dealers could be served up just in time. Further, offering niche coupons sweeten the deal.
Re targeting would take the concept one step further, enabling companies to advertise only to people who have visited their web site previously without interacting with its online purchase page or lead tracking module. With average conversion rates hovering around 1-2%, this would be an ideal way to reach the other 98% that have taken the time to visit the brands site but haven’t yet converted.
Additionally, search marketing will continue to expand since it is the only tactic (other than Yellow Pages) that puts the marketer in the middle of the consumer’s purchase psychology funnel.
Finally the Numbers Don’t Lie!
The Orwellian nature of the Internet, Digital marketing offers superior measurability and trackability in comparison to traditional media. This is of course due to the fact that every mouse click is tracked, usually anonymously.
When implemented correctly, banner ads, organic search, paid search, blogs and social media, email, lifecycle marketing and all other Digital marketing tactics provide a user by user scoreboard that can be utilized to ascertain precise return on investment metrics for each campaign.
Aren’t this big enough reasons for brands to make a shift in their marketing plans.
Before joining the league of Marketing Technopologists, Deepak has been a versatile brand builder. He has worked on various consumer durable and FMCG brands. For last few years Deepak has been associated with product development and marketing of Internet and Mobile Internet domains.
An alumni of Indian Institute of Mass Communication (IIMC) and IMT Ghaziabad, he is passionate about academics too.