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The rise of “Digital Marketing” — The death of advertising?

brand credibility from branding expertsAdvertising is dead. No it’s not. Yes it is. No it’s not!

The debate about the death of advertising is not new. People have been going back and forth on that for years, and the rise of digital marketing has amplified the rhetoric dramatically. A whole new cottage industry is marketing the death of advertising, for its own benefit.

But history is littered with these Chicken Little stories of advertising’s demise…

the rise of digital and the death of advertisingBack in the early 1950’s, when TVs first made their way into living rooms across America, television proponents confidently proclaimed “Radio is dead.  TV’s taking over. It’s doomsday for radio.”

Obviously, that didn’t happen. Radio evolved.

It was not the death of advertising. The new medium didn’t replace the old one. And no one — not even the television network executives — started calling the new cool thing “Television Marketing.”

It was just another new advertising platform. Same as “digital marketing.”

So don’t write the obituaries yet. Advertising isn’t dead, it’s just evolving again, and adapting to new consumer behavior patterns and new technologies. As it always has.

In 1981 MTV hit the Cable TV airwaves, and again, the Chicken Littles were saying “Radio is Dead.” This time, for sure. Why would anyone just listen to music when you can watch the music videos?

the death of advertisingStill didn’t happen.

In the late 1990s when Email was widely adopted, the sky was falling for the direct mail business.  “Direct mail is dead.”  “No more junk mail,” they said.

My first job out of college was in the direct response industry, and one thing’s for sure… those guys aren’t stupid. They’re the original data-marketing gurus. They test everything, and if something isn’t working, they stop doing it.

And yet, look at that… Those credit card offers continue to roll into my mail box via the good ‘ol USPS. Non profits still raise millions through the mail, and many of the catalog companies still print catalogs.

So, no… direct mail isn’t dead either. The ROI is undeniable. Otherwise, they wouldn’t keep doing it.

Doomsday hype about the death of advertising peaked again back in the early 2000s with the intro of TiVo’s disruptive new technology. Surely, this new-found ability to fast forward over commercials will seal the fate of the advertising business!

Never happened. Disruptive new technology keeps coming along, but it’s not a fatal wound for radio or TV or any other medium.

Today  the amount of money spent on the “traditional” advertising channels — TV, radio, print and outdoor — is declining relative to the growth in advertising on digital channels. In 2017, for the first time in history, worldwide digital ad spending outpaced television ad spending.

But that doesn’t spell the death of advertising. And we don’t need to coin a new term for advertising that’s placed on digital channels.

It’s not digital marketing, it’s digital advertising. It falls under the umbrella of advertising. And, of course, advertising is just one of many business disciplines that fall under the bigger umbrella of Marketing.

So the hierarchy goes like this:

Branding.  (This is the broadest discipline.)

Marketing  (Remember the 4 P’s: “Price, Product, Place, Promotion”)

Advertising  (Just one of many options under “Promotion”)

Media Buying  (A specialty underneath the Advertising header.)

Digital

TV

Radio

Print

Out of home

Just because digital is the only medium that many small companies choose doesn’t mean it’s “Marketing.”

Search advertising and social media advertising are relatively inexpensive tactical advertising options. They make advertising accessible to millions of small businesses that  that never would have spent money on a TV campaign. So there are a lot more businesses participating than there used to be.

The fact is, there’s actually more advertising out there today than at any time in history.

We’ve never been exposed to so much commercial messaging. It’s everywhere we turn, at every minute of the day, no matter what we’re doing. We literally can not escape the ads.

I find it ironic that most of the”advertising is dead” proponents run digital marketing agencies whose sole purpose is placing promotional “content” on all the new digital channels.

the death of advertising BNBrandingHow is that NOT advertising? Look it up.

In the golden age of television advertisers only had three channels to choose from for their Brylreem and cigarette commercials. It really was a shotgun approach to mass media.

Now you can stream your commercial on hundreds of cable channels and thousands of digital platforms to a highly targeted demographic group while they’re watching a specific type of content on a specific type of device in a specific geographic area.

It’s more targeted — more granular — but it’s still advertising.

As long as there is capitalism, companies will always find ways to communicate with prospective customers. The forms will continue to evolve, but there will always be commercial messages out there. I’m not a media planner, but believe me, there are a million different ways to get your commercial message in front of highly targeted audiences.

Wise CEOs and Marketing Directors never put all their eggs in one media basket. No matter what they call it.

I don’t expect the death of advertising debate to end any time soon. It’s a simple matter of self-interest and survival…

Radio industry execs will cite plenty of credible studies that prove radio is not dead. In fact, one recent study featured a a snack food brand that spent $1.5 million on radio and generated $10.8 million in added sales. That’s the kind of ROI that the digital guys routinely tout.

Television execs point to the massive reach of television during live sporting events and reality TV shows. Also, it’s still the preferred medium of fortune 500 marketing executives because of its power to connect emotionally with an audience. You won’t hear about the death of advertising from that group.

Traditional Advertising Agencies want to hang onto their golden ticket — media buying revenues — so they promote a balanced, wholistic approach that includes traditional and digital channels. Can’t blame them for that.

Specialized agencies in the digital space will continue to promote the importance of a digital-only approach. It’s in their best interest to claim the sky is falling on TV, Radio and everything else that’s not in their wheelhouse.

But there’s one thing that’s not debatable: No matter how you choose to deliver your advertising messages, the strategy and execution matters as much, if not more, than the medium.

The brand strategy is your guidepost. Everything you produce should be held accountable to that. Strategy dictates “what to say.”

Execution is “How you say it.” This is the the craft of it all… the creative piece that’s a complete mystery to 99% of the world.

So the next time you’re thinking of running ads — digital or otherwise — think twice about how you’re portraying your company, your product, or yourself.

Because crappy advertising in any medium is still crappy advertising. And if that’s all you do, then yes, the sky really will be falling down around you.

 

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Definition of digital marketing — 3 things you HAVE to know

BNBranding logoSurely you’ve heard the online chatter about “digital marketing.” There are a million platforms, channels, systems, software programs, “strategies”  and agencies that are guaranteed to make you a million bucks.

Every month it’s something new. (You using Facebook Messenger as an ad platform yet?)

If you’re a business owner you have better things to do than follow the scuttlebutt about the shifting landscape within various specialties that fall under the banner of digital marketing.

It’ll make your head spin.

So here’s a little advice… If you’re choosing a digital marketing firm, or thinking of hiring an in-house “digital marketing specialist,” read this post all the way through.

At least you’ll get a handle on the definition of digital marketing. That’s the bare minimum you need to know before diving in. You can’t manage their work effectively if you don’t know the basics:

Choose one main thing BNBranding1. Know the definition of “Digital Marketing.”

You have to understand that the term itself varies dramatically from one firm to the next. Depends on their niche… Some say it’s SEO. Some say it’s web development. Some says it’s pay per click. Some say it’s lead-gen. Some say it’s all of the above.

Here’s a definition used by one of the big players in that business:

“Digital marketing is data driven and targeted brand promotion through technology.”

“Data Driven” and “Targeted” are popular buzzwords these days. But guess what… Marketing consultants, direct response agencies, media-buying specialists and market research firms have been “data driven” since the early 1950’s.

Even Advertising Agencies… They use hard market research data to devise creative campaigns, and then they use sophisticated media targeting to deliver the message to the right people.

This is NOT a new concept in the marketing world.

Digital marketing firms are just using new tools to do the work. And for the most part, it’s good, valuable work that should be part of every marketing plan. But it’s just a part.

Note the use of the word “promotion”.

By definition, promotions are transactional, tactical tools that can boost short term sales. But they do not build brand loyalty. Don’t confuse promotional tactics with marketing strategy or brand building.

And wait a minute… That same firm also claims: “We have the means to take over your marketing from top to bottom, evaluate your brand’s needs and develop a powerful strategy that maximizes profits.”

That’s where they begin to overpromise.

I don’t know any small digital firms that have account planners, market researchers or brand managers on staff who can help you with a brand strategy. Digital marketing people are detail-oriented, technology-minded specialists. They’re not trained — nor wired — to see the big picture.

For that, you need a real a marketing consultant or a strategic branding firm. Even an ad agency would be a better choice for strategy work than a digital marketing firm. Let the digital guys stick to their own definition of digital marketing, and use someone else to oversee the strategy.

2. Know where digital marketing firms fit into the overall marketing landscape.

Naturally, all digital marketing firms contend that “digital is the future of marketing.”  And a lot of business owners are buying into the idea that a digital marketing firm is all they’ll ever need.

But the world’s greatest brands, and the fastest growing small businesses, recognize one old-fashioned business school fact: The best marketing is a MIX of things.

You need a rich mixture of marketing tactics, marketing perspectives and marketing talent — both generalists and specialists.

You also need a mix of different media outlets to keep your brand visible and relevant. Not just social media posts or paid Instagram ads.

A healthy marketing mix means that some of your marketing efforts will be designed for a short-term bump in sales, while others will be designed for building long-term brand loyalty.

Some will be creative, design-oriented, “feel good” efforts like what you get from design firms and ad agencies.

Other tactics will be analytical and numbers-driven, like what you get from digital marketing firms.

Both can move the needle for your brand, but all those pieces should be aligned under one, coherent, overarching marketing strategy.

Digital Marketing Agencies are constantly promoting themselves on Facebook, LinkedIn, Twitter and Instagram. Which is perfectly on-brand, because that’s their wheelhouse. They commonly boast that they “manage $x millions in digital media spending”  which tells me they fit squarely in a specialized niche within the bigger niche of media buying services.

They don’t tout their strategic prowess or creative thinking. Just their ability to manage your social media posts and paid ads on all the various digital channels.definition of digital marketing by BNBranding

The business model that’s taught by all the digital marketing gurus is based on mass scaleability. “Just follow this model and you’re going to crush it,” they all claim.

It’s true. Media planning and buying always has been a highly profitably business model. (That’s how advertising agencies made their millions.) But there’s a dirty little secret in the new model that digital agency owners don’t want clients to know:  When they “scale” the clients pay a price.

The mindset is this: We managed a facebook campaign for a natural foods company that worked well, so we’re going to replicate that and run the exact same thing for a bunch of clients in the same category. All we have to do is change out the logos.

It’s an efficient cash-flow generator for the agency owners, but it’s not necessarily good for your brand. Do you really want to be saying, showing, and doing the same thing as your competitors?

Seth Godin posted this recently:

“Online marketing has become a messy mix of direct marketing, seo, tricks, tips, code and guesswork. It’s an always-moving target and it’s mostly focused on tactics, not strategy, because tactics are easy to measure.”

3.  Know the difference between marketing strategy and tactics.

Digital marketing firms will tell you how “strategic” their social media work is, and they’ll claim that everything they do is based on “strategic targeting.” Sure, targeting is important, but do not expect marketing strategy from a digital marketing firm.

Mark Ritson, a world renown brand strategist and Professor of Brand Management puts it bluntly: “‘Digital Strategy’ is a contradiction in terms. What’s happening all the time now is tactics are getting perverted into ‘strategies’. What you really need is a marketing strategy.”

Strategy first, THEN tactics.

I know it’s confusing. And don’t feel bad if all your efforts have been tactical. Ritson says that 80% of all British companies don’t have a coherent marketing strategy. Everyone’s fixated on tactics these days.

Here’s a good post where you can read more about the differences between marketing strategy and tactics. 

definition of digital marketing by BNBranding

 

Strategy first. Tactics second. 

The old 4 P’s of Marketing still apply.  You should  pay attention to all four, not just the one that’s covered by digital marketing firms.

There’s “Place” which has to do with distribution strategy.

There’s Pricing. 

There’s Product. (A great product makes all the other elements of marketing much easier.)

And finally, there’s “Promotions” which is a catch-all phrase that includes all marketing communications and tactics, including every specialized facet of Digital Marketing.

So you see, the tactical work that Digital Marketing firms do well — SEO, SEM, SMM, CPM — and all those other confusing acronyms — is really just a small part of the overall tactical marketing picture.

Digital marketing firms like to compare themselves to “traditional advertising agencies” because the old, Mad Men model is an easy target.

But digital agencies are actually more similar to Direct Response agencies than they are to traditional ad agencies. Direct Response firms always have been driven by quantifiable data and measurable ROI.

I believe it won’t be long before the term “digital marketing” is dropped entirely from the industry jargon. Because everything’s digital these days. Even traditional old things like radio advertising and print are delivered digitally.

4. Know who’s really doing the work.

The business model for many Digital Marketing Firms is pretty simple: Scaled Outsourcing. They exploit and monetize multiple sources of cheap labor such as crowdsourcing websites, freelance markets like Upwork or “white label” firms from Asia. Then they mark it up. Dramatically.

It’s a good business model for them, but it’s not designed with the best interest of the client at heart.

There’s no synergy to those efforts because every little marketing tactic is being executed by a different person who knows nothing about your business. Plus, in most cases there’s no strategy to guide the efforts. The right hand seldom knows what the digital left hand is doing at any given time.

So before choosing a digital marketing firm, just know that they cannot help you with the big picture strategy work that’ll build your brand in the long run.

So you have two choices… Become your own, best brand manager and get really good at strategy, OR hire a brand strategy consultant to map things out before you ever jump on board with a digital marketing firm.

Without it, your digital tactics will not be as effective as everyone would like.

If you’re still confused about the definition of digital marketing, give us a call. We’ll coach you through it, from a strategic perspective. 541-815-0075.

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