Lately, I’ve been thinking a lot about the ever-changing landscape as it relates to online marketing as well as the services that entrepreneurs and corporations purchase from digital marketing services firms.
In recent times, many of you might remember this news concerning a number of corporations that pulled advertising dollars away from YouTube, causing a number of prominent YouTube content makers very upset about decreases in income – and I’m sure Search engines and YouTube were not pleased in regards to the situation either.
I then read where Proctor & Gamble, a huge buyer in digital marketing globally, recently cutback over $140 million bucks USD on digital advertising because of ineffectual online ads.
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Why had been they saying these ads were ineffective? Their two greatest reasons cited were that many of their advertisements were ending up attached to content of objectionable quality, which means that YouTube had not been able to discern which channels were good locations to place these ads and companies were getting their own names and ads associated with articles they did not want to be in any way related to. And secondly, many of their ads were falling into channels plus spots where “bots” were taking a look at the ads instead of human eye. And bots do not spend anything on products so these advertising dollars were just being thrown away.
The funny thing was that right after these advertising cuts had happened, virtually no loss in sales or even business growth were noticed simply by these corporations. The only thing to change was your increased percentage effectiveness of advertising spend relating to sales.
JP Morgan Chase in March reduced the particular 400, 000 sites it had been allowing ads to be placed on down to only about 5, 000 pre-approved sites and, as quoted by their Chief Marketing and advertising Officer, Kristin Lemkau, to the New York Times: “we haven’t seen any deterioration on our performance metrics” since the change. ”
Over the past several years, we have seen corporations make steady goes away from spending money on TV advertising in the direction of digital advertising because quite frankly, a large number of more leads per dollar spent were attainable online. Many digital marketing firms enjoyed dramatic development over just a few years due to this windfall of media spend money coming in.
For a time, it was utopia but now corporations are usually learning as is evidenced by the examples above. They are now creating the statistical charts and graphs they have to show their management teams how effective their media spends are. And they are now able to discern where their bang for the buck is absolutely not there and to drill down on those people statistics to figure out why – which is why you are now seeing these cutback types of moves occurring across the corporate landscape and the statements being made as to why the cutbacks are taking place.
To obtain the media spend capital out there corporations today, it is becoming more obvious that digital marketing services companies had best be prepared to show record evidence that the money spent will engender the financial returns anticipated. And as a marketing firm, you will need to have the ability to start answering questions about how you are able to manage their funds so that real people and not bots are seeing the ads being placed which the ads are being placed in quality places, attached to quality content. If you fail to, you may end up being cut just like the three or more, 500 websites got cut that were profiting from JP Morgan Run after advertisements.
In summary, it is getting harder to be a digital marketing firm these days and it will come to be even more so. Online marketing services companies will have to do more due diligence as they find places to spend corporation advertising budgets. And more research means more work which will cut into profit margins. However , if you want to stay in business over the longer term, this some thing you are going to have to get good at. Those that do, will be picking up additional business through advertising firms that don’t.