Question Of The Week, As Submitted To “Ask Hari” section of Cash Cow Consultant’s Facebook Page.
Actually the question of the week, this week, comes in terms of a statement. This statement made by Mr Raj reads “I think advertisers don’t realize that advertising online increases their cost. Comment”
Let me try to explain this.
Online marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly.
Online marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all aspects of an Online marketing campaign can be traced, measured, and tested.
Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, visit a website, and perform a targeted action.
Such measurement cannot be achieved through traditional methods of advertising like television advertising, newspaper advertising or billboard advertising, where an individual will at best be interested, then decide to obtain more information at a later time. Nevertheless, companies are now integrating these traditional methods with a call of action directed to their online presence.
I’m not saying not to use traditional means of advertising just to re-evaluate your current strategy. For instance if you are a property agent, you can be a veteran of 20 years, have many contacts and do all traditional advertising. I have some of the flyers and other stuffs lying around the house I’ll admit. But how am I going to find a house? The Internet is the best option. I merely do a search on Google, Yahoo or Bing. The new generation wants information fast, and lots of it to make an informed buying decision something a one page flyer cannot show us.
I consult with many clients regarding their annual online marketing strategies and plans. Here are some ideas that I relay to my clients regarding online advertising.
1. Identity your objective.
2. Drive incremental sales.
3. Drive leads into sales funnel
4. Engage your leads
5. Build brand, reliability and relationship
6. Convert these leads in to sales
7. Turn the first sales into repeated sales
8. Get referrals from existing clients
As you can see the life time value of a client acquired through online means can be tremendous, which projects to lessening the cost of acquiring a customer considerably compared to traditionally advertising.
Internet has changed the world and search engines have changed the whole landscape of how people search for information and their media habits. With the proliferation of Web 2.0 technologies, there are more and more user generated contents and the viral effect is more important than ever.
As a professional marketer working with IT for over 6 years, I feel that business owners need to understand all these development and leverage on these new Internet / online marketing strategies and technologies in order to be effective.