An old school marketing tenet says that you have to spend money to make money. Sure, when putting up a new business or expanding an established one, you have to spend on additional capital as well as advertising. But in the current state of economy, you have to think a lot before spending. So, when it comes to advertising in this technology- driven but sagging economy, it is best to put your bet on online marketing than traditional advertising types- and here are ten reasons why:
1. “Branding” is out, and measurable return of investment is in. Traditional marketing is great for building brand exposure, that is, if you have a large budget for marketing. But for the small- to mid-sized businesses, online marketing is the smart way to go. When you put an ad on TV, radio and newspaper, you have to wait for certain period of time before you can tell whether your product or service is doing well. With online marketing, you can have a daily reading of how much of the traffic you get is actually converting to sales or not. With that, you can make immediate business decisions for your company.
2. Information in a flash. One major benefit of online advertising over traditional advertising is that you don’t have to wait for months before you launch your product or service. In fact, you can publish any information and content immediately and not limited by neither geography nor time.
3. Quality exposure. When a person passes by a billboard or sees an ad on TV, you cannot tell whether he or she is interested in what you are selling at that time or whether they will be interested in the future or whether they even noticed the campaign. However, a person clicks on an ad in the web when he or she is interested. With online marketing, you actually get your target market.
4. Cost-effective exposure. How much does a TV spot cost these days? Running a small ad in a paper for a day can already cost you a couple hundreds dollars – more if the paper has a wider circulation. However, not all of those who read the papers even read your ad. Some people just click to some other channel on TV when the commercials come on. However, you still have to pay for their viewing your advertisement. Even with pay-per-click (PPC) and other forms of paid online marketing you only pay for the views of people who are interested in your service/products. SEO is even more cost-effective in the long run because it could give you quality exposure for a relatively small financial investment.
5. Prime position. With traditional advertising you pay more to have your ads displayed in a place where it can be seen by the most number of people (Prime time on TV, for example or a billboard on a busy highway, etc). With successful online marketing your position is always prime position. Good SEO will help you rise in the search engine results pages for relevant searches, making sure you’re right there when people want you.
6. Long-term exposure. You can only place a certain amount of advertisement on TV for a few weeks, on the papers, for a day – but with good SEO, you can maintain the same site for years. However, online marketing can complement traditional media by providing directories towards previously made advertisements or those of other brands.
7. Online marketing is best for brand engagement. Studies reveal that among customers, particularly non-techie female internet users with children under 16, the Internet has a greater effect on brand engagement than print media, TV and outdoor advertisement. Brand engagement is one of the factors that ensure brand loyalty among customers. And in this time of recession, it is important to maintain buyers.
8. Online marketing provides insight and other interactive mediums. Studies also show that the internet also has a crucial role in the propagation of indirect experiences of brands through customer reviews. Online video directories for brands are a good example of interactive advertising. Customers can also choose to visit the brand’s website, or interact with the advertiser through other channels such as email, chat or phone. Response to brand communication is instantaneous, and conversion to business is very high.
9. Website users buy more online than average newspaper users. In Germany, Internet users are enthusiastic online shoppers, as well. Before making a purchase, either online or in a store, many German consumers research the product on the Internet. By 2005, online buyers rose by 7%, taking the total number of online shoppers to 27.4 million.
10. Product information. Almost as important for consumers was the search for product information. Research online was particularly popular wherein it came to slow moving consumer goods such as cars, domestic appliances, consumer electronics, mobile phone contracts and furniture. During this time of recession, people think a lot before they spend their money. With free and rich information online, people don’t mind doing a little research and reading some reviews and recommendations before they go and buy certain products.