"Half the money I spend on advertising is wasted. Trouble is, I don't know which half." Jon Wanamaker, Philadelphia’s most famous multi-location retailer, is credited with uttering this refrain in 1910.
As a business owner today, I know you can relate to his frustration. Marketing investments–newspaper ads, radio and TV spots, direct mail–may sometimes feel more like a necessary evil than an effective way to spend your hard earned revenue. Primarily because you’re spending thousands of dollars every month with little data to know if your efforts are attracting customers.
What if I told you there was one thing you could do right now to attract more customers, get real data on effectiveness, and stop wasteful marketing spending?
Mix up Your Marketing: Be Present Online & Offline
Woody Allen is often quoted as saying, "80% of success is showing up." When it comes to attracting new customers, I’d change this to read: Be present in the moments when your customers need you and they’ll buy. That means you must invest in marketing that delivers the right message to the right customers at the right time.
You must be assertive with your marketing mix to show up both on the Internet and in traditional channels to close the loop on your customer’s path to purchase.
By the end end of this year, Deloitte1 predicts $1.5 trillion–or 50 %–of all in-store sales will be influenced by digital devices.
When you invest in traditional advertising to blast a message to a mass audience, know that, at the end of the day, customers who are ready to buy will respond to these messages by researching online. Google2reports that 75% of people who saw TV or newspaper ads, continued their purchase research online within two weeks.
Research firm Borrell Associates reports that, since 2009, consumers have cut usage of radio, newspapers, magazines and yellow pages by more than 25% while increasing use of digital media by 65%.3
Even though Forrester Research4 reports that a majority (94%) of people don't purchase products online, over half do their research there.
The next five years will see more media disruption as consumers rely even more on their digital devices. Borrell forecasts a 44.7% growth rate for local digital advertising in 2015. Local broadcast TV is set to decline 8.1%, outdoor billboards down 6.7%, directories down 5.8%, newspapers down 4.8%, and direct mail down 3.1%.
The Deloitte study mentioned earlier finds that conversion rates rise when consumers use digital devices before or during the shopping process. In-store visits had a 61% conversion rate when no digital devices were involved. That number rose to 73 and 78% when these devices were used before or during in-store shopping, respectively. When they were used both before and during bricks-and-mortar visits, the conversion rate lifted to 86%.
"The fact is, traditional retailers are leaving too much money on the table and are allowing strictly online retailers to capture a growing share of revenue that could be theirs," the study said.
Make a Smart Investment in Digital Marketing
Like Jon Wanamaker, you know that traditional advertising can be expensive and hard to track. The average cost to reach 1,000 people–according to Marketing Science Consulting Group–is $487 for direct mail, $250 for catalogs, $100 for magazines, $140 for radio, $65 for newspapers, and $30 for TV. Beyond the cost is the lack of targeting and tracking capability. You pay 100% of the cost to reach 1-2% of people who are in a path to purchase your products and services today. And seeing customers walk into your business with a flyer is no real measure of effectiveness.
Bonus: Get our tips for tracking lead sources from your traditional marketing efforts.
Online marketing is a smart investment, offering a considerable cost savings along with better data showing which messages connected a prospect to your business, giving you the potential for a sale. The average online search click costs $4-$8, display advertisements $10-$12 to reach 1,000 users on contextually-relevant websites plus news and weather.
In addition to the lower cost, digital marketing is proactive. You can deliver the right ad to an ideal prospect the instant they go online to research a need, then track their online conversion path inside your digital campaign reporting and Google Analytics.
Do You Know Your Online Profile?
Ask yourself these questions:
- Do you know how many people are searching for your business online? Your category? Your products and services? Your brands?
- When they search online, how many times do you show up in a highly visible position in the results on Google, Bing and Yahoo?
- How many times do they choose you, and why?
- Most importantly: How many times does your competitor show up, but you don’t?
At Netsertive, we can educate you to answer all of these questions. Our team has been working on the cutting edge of the traditional to digital marketing transition since 2009. When a local customer is trying to find you, our technology ensures that you’re present, visible, and attractive in that critical moment.
We specialize in your industry, and we’re working with hundreds of local businesses just like yours to turn online research into new sales opportunities. Best of all, we give you data every month to directly tie your digital marketing spend to new customers connecting to your business and calling you on the phone.
It may be too late for our friend Mr. Wanamaker. But not you!
Contact us for a competitive audit today: 866.777.5028. Let’s collaborate on a holistic marketing campaign that puts the right messages in front of the right customers when they’re ready to buy, making your marketing investment go the extra mile to exceed your expectations.
1 "Digital Influence by Store Type,” Deloitte Research (2013)
2 "Zero Moment of Truth: Why it Matters Now More Than Ever,” Think With Google (2014)
3 "The Future of Legacy Media: With 5 Years of Digital Disruption Ahead, What Happens Next?” Borrell Associates (2014)
4 "Online Retail Forecast 2014-2019,” Forrester Research (2014)