Recently, I’ve been thinking a lot about the ever-changing landscape as it relates to online marketing and the services that entrepreneurs and corporations purchase from digital marketing services organizations.
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In recent times, many of you might remember the news concerning a number of corporations that drawn advertising dollars away from YouTube, departing a number of prominent YouTube content makers very upset about decreases in income – and I’m sure Google and YouTube were not pleased concerning the situation either.
I then read where Proctor & Gamble, a huge investor in digital marketing globally, recently cutback over $140 million dollars USD on digital advertising because of ineffectual online ads. Why were they saying these ads were ineffective? Their two greatest factors cited were that many of their ads were ending up attached to content associated with objectionable quality, which means that YouTube had not been able to discern which channels had been good locations to place these advertisements and companies were getting their names and ads associated with content material they did not want to be in any way associated with. And secondly, many of their ads were falling into channels plus spots where “bots” were looking at the ads instead of human eye. And bots do not spend anything on products so these marketing dollars were just being disposed of.
The funny thing was that right after these advertising cuts had occurred, virtually no loss in sales or 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 400, 000 sites it had been allowing ads to be placed on down to only about 5, 000 pre-approved sites plus, as quoted by their Chief Marketing Officer, Kristin Lemkau, to the New York Times: “we haven’t seen any kind of deterioration on our performance metrics” because the change. ”
Over the past several years, we have seen corporations make steady techniques away from spending money on TV advertising to digital advertising because quite frankly, several more leads per dollar invested were attainable online. Many digital marketing firms enjoyed dramatic growth 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 learning as is evidenced by the illustrations above. They are now creating the statistical charts and graphs they have to show their management teams exactly how effective their media spends are usually. And they are now able to discern exactly 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 business landscape and the statements being produced as to why the cutbacks are occurring.
To obtain the media spend capital from these corporations today, it is becoming more obvious that digital marketing services businesses had best be prepared to show statistical evidence that the money spent will coin the financial returns anticipated. So that 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 true people and not bots are seeing the ads being placed and that the ads are being placed in high quality places, attached to quality content. If you fail to, you may end up being cut just like the 3, 500 websites got cut that were profiting from JP Morgan Chase advertisements.
In summary, it is getting harder to be a digital marketing firm nowadays and it will come to be even more so. Online marketing services companies will have to do a lot more due diligence as they find places to spend corporation advertising budgets. And more due diligence means more work which will reduce 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 perform, will be picking up additional business from advertising firms that don’t.