I’ve been thinking a lot about the ever-changing landscape recently as it relates to online marketing and the services that entrepreneurs and corporations buy from digital marketing services agencies. brandbliss has some nice tips on this.
Recently, many of you may recall the news about a number of corporations that pulled advertising dollars away from YouTube, leaving a number of prominent creators of YouTube content very upset about income decreases-and I ‘m sure Google and YouTube were not pleased with the situation either.
I then read where Proctor & Gamble, a huge global digital marketing investor, recently cut back on digital advertising over $140 million dollars due to ineffective online advertising. Why did they say these ads were ineffectual? Their two key factors listed were that much of their advertisements ended up getting linked to material of questionable nature, implying that YouTube was unable to distinguish which outlets were safe places to put such advertising, and businesses had their brands and advertising connected with material that they did not wish to contribute to in any way. And second, many of their ads plunged into channels and spots where “bots” looked at the ads rather than human eyes. And bots don’t spend any money on products so those dollars in advertising were just thrown away.
The funny thing was that these corporations noticed virtually no loss in sales or business growth after those advertising cuts had occurred. The only factor to adjust was the improved percentage output of the revenue based promotional budget.
In March, JP Morgan Chase decreased the 400,000 pages it had allowed to put advertising on just around 5,000 pre-approved pages and, as their Chief Marketing Officer, Kristin Lemkau, quoted in the New York Times: “We have not seen any decline in our success indicators” following the move.
Over the past few years, we’ve seen corporations make steady moves away from spending money on TV advertising in the direction of digital advertising because quite frankly, a lot more leads per dollar spent were achievable online. Many digital marketing firms enjoyed dramatic growth over just a few years as a result of this windfall of media spending coming in.
It’s been utopia for a while, but now companies are realizing as shown by the instances above. Now they’re making the mathematical maps and graphs they need to give their marketing departments how successful their advertising investment is. Because now they’re able to determine that their value for the dollar is really not there and dig into the numbers and find out why-that ‘s why you ‘re seeing it now.
In order to receive ad investment resources from such businesses now, it is increasingly obvious that digital marketing technology firms have been better equipped to provide objective proof that the money invested can produce the desired financial returns. So as a communications firm, you would need to be willing to address concerns on how to handle their finances such that business customers and not actual individuals will.