Kris Ruby, CEO of Ruby Media Group, joined Cheddar to discuss how advertisers can effectively combine traditional and digital marketing methods.
Topics covered in this segment:
- Is traditional marketing still relevant?
- Can digital marketing replace traditional marketing?
TRADITIONAL MARKETING TECHNIQUES THAT STILL MATTER
What is traditional marketing?
A traditional marketing strategy relies on conventional media vehicles including:
Traditional forms of advertising were calculated by volume and audience.
For example, if you were placing paid media buys through traditional marketing channels, you would evaluate:
- Newspaper. What is the newspaper’s readership? How many people will be exposed to my message?
- Radio. How many listeners will hear my message?
- TV. How large is the viewership for the station?
When evaluating a traditional or digital marketing strategy, you want to consider:
- The cost of customer acquisition
- The lifetime value of the client (or lead)
Digital marketing vs. traditional marketing
What is the difference between traditional marketing and digital marketing?
The main difference between digital marketing and traditional advertising is customization and targeting.
Traditional marketing = wide net.
Digital marketing = highly targeted net.
People bought traditional advertising based on national reach vs reaching the right people in your target audience through highly targeted digital advertising.
Advantages of Traditional Marketing
What are the advantages of traditional marketing over digital marketing?
Traditional marketing is a great choice if you want to cast a wide net and reach as many people as possible on a national scale. One of the main disadvantages of digital marketing today is the rise of ad blockers, which can hurt how many people are being exposed to your marketing messages. Today, more than 600 million devices are using ad blockers. That is substantial!
Many of the clicks you are paying for in a digital advertising campaign can be fraudulent. For example, the high click-through rates and traffic you believe you are generating (and paying for!) may not be what you think it is.
You are paying for one thing that isn’t necessarily what is being delivered.
So, if you are spending money on digital advertising, the cost per click you are paying can be dramatically different if you are reaching a bunch of bots and ad blockers. Plus, if less than half of all online ads are viewable because of ad blockers, you have a problem.
This is one area where traditional marketing will remain supreme and has a major advantage over digital marketing.
Bob Hoffman, author of “BadMen: How Advertising Went From A Minor Annoyance To A Major Menace” said, “According to the World Federation of Advertisers, within 8 years ad fraud may become the second largest source of criminal income in the world, after drug trafficking.”
Why is traditional media still important in advertising?
Has the rise of influencers (especially news influencers/commentators) hurt local news organizations with increased competition in coverage and advertising?
Why would a brand pay the quote in a smaller news organizations media kit when there are influencers who will work for less or have larger followings?
The rise of influencer marketing has hurt local news organizations on a hyper local level. Consumers are always excited about the latest shiny thing when it comes to marketing trends, regardless of whether it is the right strategic approach for their business.
That being said, a brand should still consider paying the advertising quote in a local news outlets media kit even if there are influencers who will work for less.
Because many of these influencers who tout large followings may not even have real followings. You can read more about the Instagram black market and trend of buying and selling Instagram accounts
We have to look at how many of those followers are actually real. Plus, we have to look at if the followers are relevant to your business.
The best local marketing plan is one that is a strategic and comprehensive integrated marketing communications plan. That would include paid media (ads), Influencer marketing, social media marketing, public relations, content marketing and digital advertising.
Influencer marketing cannot replace the value of traditional advertising.
For example, if your target demo is men 65 plus and they aren’t active on Instagram, it doesn’t matter how many followers that influencer has or how much cheaper they are.
The local print outlet will most likely be a better match to meet your target demo.
Pro Tip: The media vehicle has to match the target demo and why their media preferences are.
How can digital and traditional marketing work together for your brand?
Traditional and digital marketing can complement each other in a strategic integrated marketing communications plan.
Both can be used to pursue similar outcomes of:
- Brand awareness
- Brand preference
In a digitally-dominated world, why do you think some traditional marketing techniques still hold value and relevance?
It’s not as much of a digital-dominated world as you think. Not everyone is a digital native and for some parts of the marketing puzzle, traditional marketing channels pull a stronger ROI and reach a better audience.
The power of digital marketing is the power to go very narrow — targeting with a level of sophistication we’ve never had before until now. But marketers don’t always want to go narrow.
Sometimes, they want to reach a much broader audience. And, if that is what you are looking for, traditional media may still be a better vehicle to achieve that outcome.
What are some ways advertisers have combined traditional methods with a progressive approach that includes digital PR/marketing?
- Sponsored Content, Event Marketing, Access to big data
Marketers use traditional media for brand awareness and leverage digital platforms to drive purchases as the moment of decision making.
Conversely, there are thousands of examples where customers first find out about a product online and then make their purchase decision based on subsequently seeing traditional advertising or PR. This is why it is important to not overly rely on one type of marketing channel. Ideally, you want to be doing a combination of different marketing vehicles.
How have traditional media outlets and publications figured out ways to reach new markets and consumers?
The most important question is not how traditional publications can reach new markets but, instead, if they can make it profitable.
The main problem with the publishing industry is that it existed on lightly targeted advertising, and now marketers want more-narrow targeting.
A full-page ad in The Wall Street Journal can cost a quarter of a million dollars for one ad.
Or you could spend a tenth of that and carefully reach only those people who were actually potential buyers of your product or service. It’s a no-brainer.
In some ways, big print ads are becoming what PR used to be — a signaling device that tells people a company is established and legitimate.
What are some of the trends you’re seeing in Out of Home advertising that are helping brands extend their reach?
Even in out-of-home (OOH) advertising, digital advertising has changed the game. For example, there are digital billboards near the Las Vegas airport that tens of millions of people see a year. You have to drive past them as you leave the airport and they’re very popular with consumer brands and companies that advertise during conventions.
In the old days, buying that for a month or a week would have cost a small company a fortune – it would have been totally out of reach.
What if you knew your biggest potential customers were all flying in the night before a trade show, and you could buy an hour on that billboard?
What if you had one big prospect you wanted to target and only needed that billboard for 15 minutes or less?
With digital advertising, the owners of ad platforms can accommodate marketing asks like that.
It’s not that it’s more affordable on a per-impression basis, but that it’s affordable because you no longer always have to buy a whole billboard for a month or more.
So, the difference is not only cost, but the frequency and volume of the media you are buying as well. You now have the option to purchase large scale OOH media for a fraction of what it once cost if you purchase it for a shorter period of time.
THE FUTURE OF MARKETING: PREDICTIONS
Is the age of mass media over?
The age of mass media is not over, it is just evolving.
As we have seen with the explosion of the podcast industry, it is becoming more of a niche digital marketing landscape. I expect to see this trend continue.
PR tactics will change depending on generational media consumption preferences. Before you can place media for a brand, you must understand who their target market is and what the media preferences are within that demographic.
For example, if you are a brand who is targeting baby boomers, traditional marketing and PR would be a good approach to reach this demo because this target audience watches TV.
However, if you want to reach millennials, TV may not be the right approach because the majority of these consumers get their news from social media and digital channels.
The key here is to ask the following marketing questions:
- What media matters most to your target demo?
- How do they consume media?
- What are their media consumption preferences?
Create a media strategy accordingly and determine if traditional media is a more effective vehicle than digital marketing to reach this demo.
TRADITIONAL MEDIA VS. DIGITAL MEDIA RESOURCES