Traditional Marketing Is Broken (Here’s Why Digital Will Win)
Insanity: doing the same thing over and over again and expecting different results. – Albert Einstein
Marketing is broken, yet most businesses continue to advertise the exact same way they did 50 years ago expecting a different result…
When it comes to advertising your business there are only a few options (at least a few that work)…
Traditional Media (TV, Radio, Newspaper, Flyers, Direct Mail)
Digital Media (Google, Facebook, and others)
In 2017, Digital Advertising will surpass traditional media for the first time in history.
While we’re not saying that traditional advertising is dead, it is becoming more and more challenging for small businesses to compete. In digital advertising, speed and agility pay off, which is why small businesses can not only compete, but WIN.
What’s the difference between Digital and Traditional Advertising?
Let’s start with cost…
Here’s what you can expect to pay for the two advertising channels courtesy of Frac.TL (Get the complete breakdown here: http://www.frac.tl/research/marketing-costs-compared)
Note: CPM means Cost per Thousand Views, CPC means Cost Per Click
How Much Does Traditional Advertising Cost?
At first glance, the costs look similar. Obviously, digital advertising is cheaper, but the chasm between the two is much larger than you may think!
Cost For Traditional Advertising:
Cost For Direct Mail Advertising:
Let’s start with Primetime TV at $33.85 per thousand Views.
Chances are if you are targeting a Primetime TV, you might have roughly 1.0 million viewers, which would cost $33,850 for 30 seconds (1,000,000 viewers / 1,000 x $33.85) to reach a broad audience.
The challenge with those 1,000,000 million viewers is, we don’t know who they are.
While we may have some general demographic and segmentation data, it is very hard to measure what impact the ad had, and even harder to measure a direct ROI.
How Much does digital advertising Cost?
Cost For Social Advertising:
Cost For Pay Per Click Advertising:
Cost For Digital Advertising (Including Video):
Let’s look a similar 30-second video spot on social, which is $10 cheaper than Primetime TV at $24.60.
Assuming the size of that audience is only 25,000 people. Your cost would be $615 to reach a specific audience (25,000/1000 x $24.60).
We no longer need to cast as wide of a net (say 1.0 million viewers), we can target a very specific group with detailed demographic data, for example: “married, expecting parents who are vets, between the ages of 25-34, earning $60,000 per year, living within 15 miles of Columbus, Ohio…”
While the audience is significantly smaller, we are able to hone in on the key personas that resemble your best clients. Even more powerful, is the ability to retarget them and send contextually relevant content and ads as they move through the customer journey.
$615 versus $33,850 per thousand viewers – it’s like giving David a Rifle instead of a sling in his fight against Goliath. This is how small businesses can win!
So why don’t big companies spend more on digital?
They are starting to, but the difference is, you probably know your customers better than they ever will and you can adapt to their needs much faster.
So now that we’ve told you why digital is the underdog’s silver bullet, what’s next?
Read the next post: The Foundation to Successful “Digital Marketing” Platform (coming soon…)