It’s 2017. There’s a smartphone in the pocket of (almost) every one of your customers, you can track your sales via your smart watch, and users perform some 3.5 billion Google searches every day.
Despite this, many businesses just like yours still rely on those tried-and-true stalwarts of the marketing world like Radio, Mail and Television to reach your increasingly-connected audience.
The answer, it seems, is simple: it feels safe, comfortable, and familiar!
But what if I told you that relying on traditional marketing channels like these could be holding your business back?
Digital, Inbound, and Content Marketing, for example, has been shown to generate leads that cost a staggering 61% less than those from Cold Calling or Direct Mail. On top of that, Search Engine Optimisation (SEO) leads boast a 14.6% close rate compared to just 1.7% for Outbound leads like Print Advertising.
With stats like these, it’s easy to see why digital marketing is fast becoming one of the most effective ways for your business to connect with purchase-ready customers. And from there? Turn more of them into paying customers, for less.
Now more than ever, your purchase-ready audience exists online.
So the question remains: do you?
If your business is yet to be convinced of the power of Online and Digital Marketing, now’s the best time to take a closer look at the stats, facts, and figures like those we’re highlighting today. For example, you might think that marketing experts would be split on the topic – why abandon these old advertising methods that have worked for years? – but stats like this first one show this isn’t actually the case…
1 52% Of Marketers Don’t Believe You Need To Use Television To Reach The Masses
When it comes to big-name digital businesses, Adobe is certainly up there.
Which is why a survey powering one of their recent quarterly digital briefings alongside EConsultancy is just so interesting!
Long story short, the survey shows that marketing teams the world over are catching onto the power of digital marketing.
How so? Let’s dig a little deeper:
The survey found that 52% of marketers feel that you don’t need to use television to reach the masses. Skip television? The idea sounds crazy. But it makes more sense when you ask yourself the following question:
How much Television do you still watch? More specifically, how many of the adverts that run between your favourite shows do you actually see?
Once upon a time, audiences had to sit through poorly-acted commercials and ‘I’ll be humming this for days’ jingles to catch their favourite series. Nowadays? They block advertisements or simply skip them altogether.
In fact, a recent study found that over 60% of viewers had time-shifted some of their programming in one way or another, whether via online services like Netflix, Neon, or Lightbox, or by simply recording shows directly to their DVRs and watching advert free.
That’s a whole lot of paid television advertising that’s being skipped with the simple press of a button. This freedom isn’t just reducing the number of adverts being watched, either, it also severely diminishes the impact of time-sensitive adverts that reference a given event, holiday, or sale.
Just imagine: all of those carefully considered marketing dollars wasted at the hands of an impatient audience and the fast forward button.
How do you adapt to this fast-changing landscape? That brings us nicely to our next stat…
2 New Zealand’s Digital Ad-Spend Outdoes TV $800M to $634M
Marketers and businesses alike aren’t resting on their laurels in the face of an impatient audience.
If you are? Then chances are you’re losing your competitive edge to competitors who are.
How so? Consider this:
New Zealand businesses, advertisers, and marketers are shifting their advertising budgets away from traditional media, instead funneling those funds into Digital and Search Marketing. Why? Because it’s far more cost effective. As we’ll discuss in more detail shortly.
For now? All you need to know is that the digital revolution is happening right now.
A 2015 IAB / PWC report shows as much, finding that digital is now the leader in the New Zealand ad spend market, with over $800M spent in the last twelve months. This compares to just $614M for Television, which fell $634M from the previous year.
Of this record spend? Search and Directories make up a commanding 56%, which in the fourth quarter of 2015 grew at a rate of some 31%.
With digital adspend forecast to grow a further 20% in 2017? That gap is only going to get bigger
3 8-12% More People Trust Search & Banner Ads Than TV
Here’s a stat that might surprise you!
It’s even more surprising when you consider 98% of people don’t trust the internet.
The stat? It highlights that only 21% of people trust the advertisements they see on television.
More interesting than that?
That stat is actually far lower than that of adverts served in search engine results or online banner ads. In fact, some 29% of users said they trust search engine ads, while 33% trust online banner ads.
In an advertising world where the smallest % can mean the difference between success and failure, that’s a massive gap, and a great vote of confidence in online and search marketing from users themselves!
4 The Cost Of TV Advertising Grew By 15% In 2016, And It’s Not Slowing Down
Here’s a fact I’m sure your business can agree with:
TV advertisements are expensive.
Sure, you might not be paying $5 Million-A-Minute for an Ad during the Super Bowl, but even short TV spots stuffed between lesser-known shows can still hit your marketing budget pretty hard. In fact, according to Variety’s annual analysis of the American advertising market, the cost of a 30 second Ad grew by 15%, and you’ll find similar results reflected in the local advertising market here at home, too.
In comparison? Digital Advertising isn’t just cheaper, but it’s also far easier to predict.
Digital and online advertising like Google AdWords are pay-per-click, meaning you only pay when someone actually sees your ad. More than that, they only see it when they’ve searched for a relevant term or keywords that you’ve set. They aren’t just an anybody watching their television, they’re a someone. An important someone. A potential customer.
Now, compare this kind of control, data, and feedback to a television advertisement where it’s all but impossible to determine if the $15,000 you put into an advert actually brought in $15,000 worth of sales.
For a fraction of the cost of television advertising, your business is better able to utilise all of the features of online marketing – from SEO through to Content Marketing and AdWords – and attain a much higher Return on Investment as a result.
Which brings us to…
5 Online Video & Digital Advertising Can Achieve 4 Times More ROI Than TV
We all know just how powerful video can be as a marketing tool.
All at once it’s eye-catching, attention-grabbing, and it can communicate not just any story but your business’s story in a way few other marketing formats can. Which is why so many businesses like yours still pursue television advertising so fervently.
Would it surprise you, then, to find that online advertising campaigns have been shown to achieve almost 4 times higher the ROI than their TV campaign counterparts?
You probably want to know more, right?
Then read on!
The campaign in question is Cadbury’s “Chocolate Charmer”. You may or may not have seen it, but you can do so below:
Here’s the deal: Cadbury ran a cross-media campaign to promote its Dairy Milk brand, which covered TV, Online Ads and YouTube promoted videos. Of these, Cadbury saw its online sector generate 20% of the sales, and recorded an additional reach of 19%.
Pretty great, right?
Well, here’s where things get really interesting!
Cadbury only invested 7% of its budget into online advertising.
That’s right, just 7%.
This case study from Gfk NOP showcases not just the power of online and digital marketing, but how fast it’s growing. And how important a part it can play in your business’s marketing campaign!
Your Audience Is Going Digital – Is Your Marketing Following Them?
From Search Engine Marketing through to Content and Online Video, the stats we’ve explored today show that Digital Marketing is fast becoming the most cost-effective way to reach your ideal audience.
So, back to that question: are you following your audience online with your advertising? And if not, why? It’s never been easier for you to optimise your website for search, create some killer content and start promoting your site online. Not only will you better reach your ideal, purchase-ready customers, you’ll save money while doing it.