Reading the interview with Kevin Lee of Didit was a quite refreshing experience and a well needed brake from all the talk about search engine optimizations and blogs in the previous interviews. Lee gives us the traditional marketers’ perspective on the change brought upon us by the Internet. On page 226 (and 227) he explains how the traditional advertising agencies are handling the change.
The traditional approach in marketing is to simply buy loads of exposure with only some attention paid to getting the right audience. It’s a kind of mass marketing where the important factor is how many people you can reach.
However, the new way of looking at advertising, from the customers’ point of view, is that people nowadays only look at ads that are relevant. Also, there is the fact that targeting and finding segments becomes easier with the new technology and dynamics of the Internet. In addition, as we’ve read in previous interviews, it is much easier to track actual revenue (or rather: sales) to certain advertisements. This raises the bar for what ad agencies must do to please their customers.
A good example that Lee mentions is that by getting an advertiser to buy a couple of Superbowl spots they could get billings worth $6 million having put in a very small effort. Comparatively, to get $6 million worth of billings in well targeted advertisements (narrowcast media) won’t be nearly as smooth a ride.
In some way this development is related to my belief that advertising on niche web sites will grow, that I discussed in my previous blog post. Successfully aiming the advertising dollars at the right audience has always been important, but now there are the tools (and economies of scale thanks to the universality of the Internet) to do so much more effectively than before.
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5 comments:
I agree that nich marketing will become bigger in teh near future. however, i don't think you can discard the old ways of mass marketing. Mass marketing may not be as effective when it comes to profit/cash spent, but it still serves a purpouse for reqriuting new customers and general brandrecognition. But as i mentioned in a previous comment, what strategy you should use depends on what product/service you want to sell.
I agree that targeted marketing will grow, may it be niche marketing, one on one marketing or narrowcasting, especially since it's now become possible through the availability of tools, and it will probably just keep getting easier with time. But I'll still have to agree with Patrik that I think mass marketing strategies will be around for a very long time. It may not be as efficient, but I think it's important for catching those new customers that may not be targetable.
Target marketing will grow but I am not sure that how much potential nich market has. Because most nich market can not sustain longer. Of course there are many successful cases. But nich markets are always effect by vogue. Therefore the marketer should raise their various abilities or sense for change of divrse market.
Recently, when I met an Ad agency executive, he told me that the ad is chaging in the context that preference becomes more important than traditional demographics... which is a change from mechanical approach to human approach...
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