Current Issues in Marketing Strategy

My last article on the marketing contract received a lot of positive feedback, so here is a follow up that answers some of the more prevalent questions I received.

David Ogilvy 'The father of advertising', founded his business on one simple principle, that in order to advertise, we must in exchange, offer value back to the consumer. This very simple concept can be seen everyday on televisions & online video and alike. We as consumers are prepared to watch ads, if in exchange we are also provided with the latest Master Chef program. For most, it is an unwritten rule that we acknowledge, but never actively consider. When ESPN first launched on Foxtel, it was a catastrophic failure because 90% of programming was ads, the value of the programming was not equal or higher than their solicitation demands on our time. So how is this relevant to digital media?

Google remains the unchallenged market leader because they deliver a superior product, delivering exceptional search results with an ever improving algorithm. Consumer search strings have got longer and longer, with up to 7 or 8 words seeking "Melbourne birthday venue that fits 500+ people". So good is their product, that 80% of users don't go past the first page of search results, instead expecting that the top listing will be the most relevant to answer the query. Based on this very logic, SEM (pay per click advertising or sponsored links) have also been readily accepted by the consumer market, with Google prioritising the most relevant ads and reducing the ability for big companies to 'buy their placements'.

In recent times, developments in the content network, with contextual targeting and Google retargeting have furthered this value offer, by improving the ability for advertisers to target their banner ads to an appropriate audience. Congruent to this, consumer have received more appropriate advertisements and across the board we have seen ad click through rates increase. This means more ad revenue and better user experience, a win win for the digital community.

As digital marketers, we must keep the advertising contract in mind. Blanket marketing is a thing of the past, the desegregated approach (1 to 1) is the new black, the new consumer expectation. This is also relevant on an agency level, with every advertising dollar held accountable, we must be able to justify our spend using better logic that the traditional "it's exposing people to the brand" rhetoric of yesteryear.

There has never been more sophisticated advertising tools at our disposal, but along with great results comes great expectations. John Wanamaker's famous line "half the money I spend on advertising is wasted; the trouble is I don't know which half" is no longer acceptable in the modern climate. This means that bar has been raised and lazy blanket advertising will no longer be tolerated. That is not to say that there is no place for outdoor or print advertising, but each placement should be questioned, what value is it generating for the consumer???