Only a short time ago, brands were fighting the mass media war. A large advertising and media budget was the solution for most companies wanting to generate brand awareness.
Fast forward to 2012 and consumers are more distracted than ever before. They are spoiled with never-ending entertainment options thanks to modern technology. Entertainment options now include traditional websites, YouTube, blogs, social media, itunes, smartphones, iPod and iPad apps, playstations, interactive TV, DVD recorders, Apple TV and the list goes on....
In 2012, it certainly wouldn’t be unusual for a couple to sit together on a couch watching TV each with a tablet or phone in their hands. According to a Q4 2011 Nielsen survey of connected device owners in the U.S. , U.K., Germany and Italy, it is now common occurrence for people to be connected online whilst watching TV (both during the show and in the ad breaks).
Videos of people on their phones falling into fountains and walking into doors are plastered all over YouTube. If consumers are accessing their smartphones and tablets whilst on the go and while sitting at home, how are they going to notice our billboards or TV ads?
They probably won't....
Skepticism is everywhere
A growing number of people have become skeptical. Instead relying on the advice of sales staff and believing the over-promises made by brands in their advertising campaigns, many consumers are turning to advice from “friends” in their social networks, bloggers and independent review sites.
Fundamentally, consumers now have a choice. Technology has changed the landscape and the ball is now in the customers court. It is now even easier for customers to either find you or chose to ignore you. It’s getting harder and harder to reach them.
If we are interesting, believable, trustworthy and engaging they will find us.
In the words of Craig Davis, Chief Creative Officer, Worldwide. J. Walter Thompson, “We need to stop interrupting what people are interested in & be what people are interested in.”
Whilst it can be a difficult task to “know” what our target markets are interested in, technology now provides businesses with the ability to engage in two way dialogue. Online communities behave similarly to offline communities in that organisations who are able to demonstrate they are trustworthy, relevant and are engaging tend to have a more intimate relationship with customers which fosters loyalty and word of mouth recommendations.
We need to engage with individuals rather than on mass
Online communities allow us to gauge whether we are being “interesting” and resonating with our target market. Where mass media allowed a scattergun approach when trying to resonate with target audiences, online communities allow us to communicate with markets the way thy want to be communicated with. Another benefit is that marketers now have the opportunity to adjust their approach if they find they are not attracting and engaging online community members.
According to Hubspot (2011), Inbound Marketing costs 62% less per lead than traditional, outbound marketing.
If it all makes sense, what is stopping some marketers?
Developing an online community allows businesses the opportunity to form longer term relationships and engage with customers in two way dialogue and is cheaper than traditional marketing. Why is it still that some marketers are resisting the transition? Could it be that although many marketers are starting to realise that traditional marketing is less effective than inbound marketing, convincing traditional stakeholders can be rather challenging? I've found that when the going gets tough, it's often suggested to do a quick, low budget short term "tactical" traditional advertising campaign to stimulate sales. In my own experience this tactic hasn't proven to be effective over the last couple of years unless the campaign is based on some form of a discount. Whilst driving brand awareness through traditional channels is still a necessity, short term advertising is rarely an efficient use of funds unless of course large budgets are attached or the offer is extremely compelling and unique. Personally I'd rather leave the discounting to the low budget retailers and get back to creating compelling propositions and fostering brand loyal customers who are willing to pay the price tag.
References
Chaffey, D, Ellis-Chadwick, F, Mayer, R, Johnston, K, 2009, Internet Marketing: Strategy, Implementation, and Practice, Pearson Education, England.
Hubspot, 2011, 100 Awesome Marketing Stats, Charts and Graphs for You!, viewed on 7th April 2012, http://www.hubspot.com/download-100-awesome-marketing-stats-charts-and-graphs/
Miller, M, 2010, The ultimate web marketing guide, Pearson Education, USA.
Neilsen, 2012, Double Vision - Global Trends in Tablet and Smartphone Use while watching TV, viewed on 7th April 2012, http://blog.nielsen.com/nielsenwire/online_mobile/double-vision-global-trends-in-tablet-and-smartphone-use-while-watching-tv/
Reed, J, 2011, Get up to sped with online marketing, Pearson Education, England.
Vaczi, D, 2011, Is your marketing strategy annoying your customers? viewed on 7th April 2012, http://www.adherecreative.com/blog/bid/95662/Is-Your-Marketing-Strategy-Annoying-Your-Customers
