So, those of you who know me personally and professionally are well aware of the axe that I grind, everyday, in every way. In fact, I'm busy now editing the inscription that will by my epitaph:
'Here lies Matthew Greene. He died wondering whether the marketers and their agencies that never spent more than 30% of available ad dollars through digital channels, didn't know they were doomed.'
Sound a little drastic you say? Well here are some facts that we share with clients in the C-Suite to jump-start this very conversation. I will walk you through these very important datasets to show why I'm so passionate about digital media and marketing and why I plead with major brands to get their collective acts together before it's too late. It's time to share-shift A LOT MORE OF YOUR AD DOLLARS ONLINE, NOW!
Marketing Malfeasance. You bet!
Everybody knows that the web and other digital forms…from the portals (AOL, MSN, Yahoo!) to social media, to mobile, to search…are integral to our daily lives, often minute-to-minute.
This truth leads to my very 1st set of data points. I call it the lunacy factors. Keep these figures in mind as I divulge, piece by piece, the ammo that informs and activates my marketing malfeasance rationale:
The charts reveal the fact that of the $142 billion spent in above-the-line advertising in the 18 media channels that TNS Media track, less than 7% of all ad dollars went to display advertising. That's the 1st lunatic factor. The second? Retailers, those poor souls who have experienced the greatest hurt since the fiscal sky collapsed 9/15/08, are the biggest investors in traditional media, especially newspapers, making them the biggest losers across the board.
My aim is to help retailers and manufacturers alike stop (or at least curtail) this lunatic investment strategy. Really, time's a wastin'.
The fact that less than 7% of ad dollars goes to the web flies in the face of this…
That's right. 40% of media consumption occurs on the web, with 40% going to TV viewership, 13+% to Radio listenership and only 3.5% to Newspaper and Magazine readership, respectively. Like it or not…them's the facts and the sooner—faster—better you adapt to this new media paradigm, the better off you and your company will be.
The next data point I want to share with you is this.
89% of consumers go to the web first when contemplating and researching a product, or service, or just to get the latest news, or email, or social media message. As a marketer, doesn't it make sense to put your product in front of your consumers when they are in-market, eager for your message, inside the medium they've decided to go to first?
The answer, of course is a resounding YES!
And with a plethora of technology and media solutions available to us all, allowing us precision reach with your best prospects whenever they are in market, well, let's just agree that this level of focused targeting is Part 1 of the marketer's search for the holy grail.
Here's the final data point that never fails to blow people's minds…
93% of all transactions and sales in the U.S. still occur within a 4-walled retail environment. That's a <$4 Trillion marketplace at retail, versus a $156 Billion e-com marketplace. Shall I repeat? Nah, you get the idea.
So when a very well known upscale apparel manufacturer/brand tells me that they moved $405 MM through their e-com channel in 2008. I say, "Great. Keep it up!"
"BTW," I continue. "How much revenue did your company generate at retail?" "$8.5BB you say? That means that less than 5% of your company's revenue is generated by your e-com site. Yet, while 40% of media consumption is done Online, the 2% of your ad dollars you do invest on the web are for branding and e-com rather than supporting your retail stores. Are you seeing any disconnect in this strategy?"
They sheepishly respond that while they believe in cross-channel marketing, all their online advertising, for display and search is devoted to driving e-commerce traffic and transactions. I say, "Welcome to marketing malfeasance."
At Blue Ribbon Digital and its wholly owned company, Click2Mortar™, we believe that the next big frontier and area of growth in digital advertising and marketing is exactly where we've focused our efforts, while consistently innovating with all our media and technology partners. Namely, driving web viewers to retail locations, accountably. This is Part 2 of the marketer's search for the Holy Grail.
Retailers need to learn how to utilize the web to drive consumers to transact in-store. If they don't, not only will they be guilty of marketing malfeasance, they'll be out of business.
Matthew Greene has over twenty-five years of strategic advertising and marketing experience working with blue-chip companies. Matt can be reached at email@example.com
Read all Matthew's MediaBizBloggers commentaries at Media Malfeasance: Observations from the Front Lines - MediaBizBloggers.
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