Joe Jaffe, who just released his new book „join the conversation“ (and very successfully bumrushed the charts on amazon) also conducted a study (together with the Society for New Communications Research and TWI Surveys) on how marketers might shift their budgets to conversational findings.
Here is an excerpt from his blog (the whole study is here):
- Nearly 57% of respondents report that in 5 years time, what they spend on conversational marketing will be greater than that of traditional marketing.Â Another roughly 24% believed it would be the same as traditional marketing
- 70% are currently spending 2.5% or less of their communications budgets on conversational marketing, but two-thirds plan to increase their investment in conversation within the next twelve months
- Respondents noted that the primary obstacles currently preventing them from investing more in conversational marketing include: â€œManpower restraintsâ€ – 51.1% â€œFear of loss of controlâ€ – 46.9% â€œInadequate metricsâ€ – 45.4% â€œCulture of their organizationsâ€ – 43.5% â€œDifficulty with internal sell-throughâ€ – 35.8%
The rest you can find in his new book. I should get mine soon, amazon already notified me, that it shipped yesterday. (I helped Joe bumrush the charts on Sunday … )
Marketing.fm wants to revise a famous quote by John Wanamaker:
Half the money I spend on advertising is wasted; the trouble is I donâ€™t know which half. -John Wanamaker, US department store merchant (1838 – 1922)
I know the quote, of course, as I suppose everyone in advertising does. But I didn’t know it was of someone as unknown as this chap. On the contrary, I was almost tempted to assign the quote to Mark Twain, purely because lately if feels like most thoughtful quotes come from Mark Twain, as if he is some sort of a quote-goat anytime people don’t know the real source.
In the same blog post, they write:
The advent of interactive media and online measurement has allowed marketers to target advertising messages much more precisely. Morover, it is possible to access comprehensive data on the viewers of your campagin: page views, geographic location, clicks, links, etc.
Is it time that we revised the 50/50 Wanamaker quote? Should it be more like 70/30 now?
I ain’t sure that the hard measurements that the web provides, should redefine investments alone. This might sound strange coming from someone working in digital marketing. But if you think about it: applying these measurements, you de-value the web to a purely interactional medium (which it is, most of the time, admittingly). However, by that you omitt all the effects of the contacts people have with your brand that cannot be exactly measured:
- The impression an ad made with that one page view, even if the user didn’t click on it.
- time spent interacting with the ad piece all together
- triggered purchase consideration, fulfilled in brick&mortar store
Online Advertising can be measured and therefore it should be. Always.
But we should not forget, that there are so called key performance indicators that can help us understand the effect of advertising, and that can’t be measured by interaction, but purely by qualitative research. Asking the target audience about their perception of the brand, the channel interaction, etc.
Classical Advertising has been working with this kind of research all the time. And while it never helped to solve the puzzle of where the 50% of investments „got lost“, I think, purely relying on data measured through interaction, will not help either. It sounds more like a quick fix of Marketeers trying to answer tough questions by providing hard results – irrespectively of context.