Everyone uses Google and social media like Facebook, Twitter, Instagram, Pinterest, etc. If you’re not visible in these channels… you’re invisible.
The digital age is upon us.
If you aren’t already investing in online advertising you are light years behind your competition… and yet all is not lost. Google and other digital players are built for easy access and a level playing field. Entrepreneurs at any level can compete with the big boys with the right knowledge and a willingness to ply by the rules.
In a capitalist economy – money is a good indicator. If you look at all estimates for the future of digital advertising & marketing they trend upward consistently. One recent estimate saying that digital advertising for the retail market alone should top the 23 billion dollar mark by 2020.
Why is Digital Advertising Growing So Fast?
2 Reasons –
- Technology: The trend in general for users is towards handheld devices. You can see this all around you today. As this technology continues to spread and become cheaper the ability to target individual users based on their likes and interest will also improve.
- It’s Effective!! With digital there are means of tracking far beyond anything any TV advertiser could’ve dreamed. You can see exactly when a user drops off in the viewing process, how engaged they are with certain ads, etc.
Why Digital Advertising Works For Brands
Provable R.O.I. (Return on Investment)
When you spend money on advertising you want to see results. Well, with TV, Billboards, Print, etc. you’re pretty much guessing. You don’t know exactly who saw your ad or when, you just throw a bunch of money at publications you know have your audience and hope something sticks. Not the case when online marketing – everything you do is trackable.
That’s not to discount the value of traditiona as there are several parallels today. However, the ability to track, especially in digital video environments is a huge asset. You can see detailed information about your viewers, how long they watched a particular piece of video, exactly where users are dropping off, etc. etc. This data is extremely valuable!
A recent study by Nielsen concluded that brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising. It doesn’t get much more effective than that.
According to Nielsen, 92% of consumers believe recommendations from friends and family (“word of mouth”) over all forms of advertising. The online version of this is “reviews” – sites like Yelp!, Google Business, Facebook, etc. all have review features that allow a customer to post about their experience. This might be your best selling tool. Think about the way you purchase online… I bet you put a lot of stock into reviews don’t you? The data shows that recommendations have more impact on a consumer’s purchase decision even more than brand name or price. In contrast, a negative recommendation can reduce purchase intent by 11%
More Efficient Than Traditional Media
While it is dangerous to generalize about media costs given the wide array of choices within each medium, digital advertising can generally be seen to be among the most efficient means of reaching an audience.
Further, on a cost-per-conversion basis, the IAB estimates digital to be five to six times more efficient than direct mail.
7. Digital Advertising Is Essential To Reaching An Audience
In 2013, time spent with digital media among U.S. adults surpassed time spent with TV, and this gap will likely continue to widen.