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 agencies.
In recent times, many of you might remember this news concerning a number of corporations that pulled advertising dollars away from YouTube, leaving a number of prominent YouTube content creators very upset about decreases in income – and I’m sure Search engines and YouTube were not pleased concerning the situation either.
I then read where Proctor & Gamble, a huge buyer 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 had been ineffective? Their two greatest factors cited were that many of their ads 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 particular names and ads associated with content they did not want to be in any way associated with. And secondly, many of their advertisements were falling into channels and spots where “bots” were looking at the ads instead of human eyes. And bots do not spend any money on products so these advertising dollars were just being disposed of.
The funny thing was that after these advertising cuts had occurred, virtually no loss in sales or even business growth were noticed simply by these corporations. The only thing to change was the increased percentage effectiveness of marketing spend relating to sales.
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JP Morgan Chase in March reduced the 400, 000 sites it had been allowing ads to be placed on down to just about 5, 000 pre-approved sites and, as quoted by their Chief 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 now have seen corporations make steady goes away from spending money on TV advertising to digital advertising because quite frankly, a large number of more leads per dollar invested were attainable online. Many electronic 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 need to show their management teams how effective their media spends are. And they are now able to discern where their bang for the buck just isn’t there and to drill down on these statistics to figure out why – this is why you are now seeing these cutback types of moves occurring across the corporate landscape and the statements being produced as to why the cutbacks are happening.
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 record evidence that the money spent will coin the financial returns anticipated. And as a marketing firm, you will need to be able to start answering questions about how you are able to manage their funds so that real people and not bots are observing the ads being placed and that the ads are being placed in high quality places, attached to quality content. If you can’t, you may end up being cut just like the a few, 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. Internet marketing services companies will have to do 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 remain in business over the longer term, this something you are going to have to get good at. Those that perform, will be picking up additional business through advertising firms that don’t.