marketing channels

Nearly Half of B2Bs Expect a Marketing Budget Bump in 2014

source: http://www.emarketer.com/Article/Nearly-Half-of-B2Bs-Expect-Marketing-Budget-Bump-2014/1010238

More use video sharing

Business-to-business (B2B) marketers are already looking ahead to 2014, and the outlook for the year seems positive. The Sagefrog Marketing Group surveyed US B2B marketing and management professionals from a cross-section of industries in the summer of 2013 and found that 45% of respondents expected to see an increase in budgets in the next year, while 52% thought their outlays would remain the same.

The top four most popular marketing channels for B2Bs were all digital, according to the survey. Websites were the most uniformly employed technique, used by 85% of those polled. Email marketing was second at 72%, followed by social media (67%) and search engine optimization (56%). Just under half of respondents relied on trade shows, while four in 10 used direct marketing.

Eighty-four percent of B2B marketers used social networks this year, up from 79% in 2012, while both blogs and microblogs saw a decline in B2B use this year. Photo sharing also saw a precipitous decline over the last year. Video sharing, however, continued its growth trend, in use by 37% of surveyed B2B marketers.

In September, B2B Magazine released an analysis of data from Kantar Media, which found that ad spending among t! he top 50 B2B advertisers in the US had increased by 4.8% between 2011 and 2012 for a total of almost $4.3 billion. However, the only channels that saw ad spending growth were television, outdoor and consumer magazines. Online display ad spending dropped by 1.3%, according to B2B Magazine. Still, online display ads accounted for 10.5% of US B2B ad spending, behind only television (59.6%).

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Tuesday, September 24th, 2013 news No Comments

Marketers Put More Work in the Hands of In-House Agencies

source: http://www.emarketer.com/Article/Marketers-Put-More-Work-Hands-of-In-House-Agencies/1010228

Cost-cutting drives changes

A growing contingent of client-side marketers are turning to in-house agencies to take more ownership of their advertising and marketing strategy.

According to an Association of National Advertisers (ANA) survey, 58% of US client-side marketers said their company used an in-house agency this year, compared to only 42% who five years earlier said the same. And 56% of respondents said in May 2013 that in the past three years, they had moved at least some established business previously handled by an external agency to their in-house agency.

Magazine advertising, social media, online display advertising and search engine marketing were the services most commonly handled by an in-house agency, according to the study. The proliferation of digital marketing channels may be convincing companies to move more marketing in-house, so they can be more responsive and create a full breadth of material at lower cost. Still, only small percentages of in-house agencies handled most of these services, indicating that much work still sits squarely with external agencies.

Traditional TV and radio advertising were the least likely formats to be handled in-house.

Marketers cited cost savings as the most significant advantage of bringing agency work in-house in 2008. This year, it remained the top advantage, however one cited by far fewer respondents.

Five years earlier, more than half of marketers saw cost efficiencies as an in-house agency’s primary advantage, whereas in! 2013, that figure had dropped to 35%. Other factors instead took on greater precedence: 19% of marketers cited brand expertise, as well as institutional knowledge and the added benefit of a team dedicated to the company or brand. This indicates that marketers have become more satisfied by the quality of work created by in-house agencies.

But the disadvantages also stacked up. Forty-five percent of the survey respondents said it would not be as easy to stay on top of key trends with an in-house agency. That was more than the percentage of marketers who saw this as a challenge in 2008, and suggests that digital channels amplify the importance of understanding the latest marketing opportunities. Creative innovation was also seen as more lacking when agencies moved in-house, along with limited skill sets among the staff.

The digital marketing age seems to be forcing marketers to navigate between two competing impulses—the need to produce more marketing than ever before across ever-proliferating channels is making in-house agencies particularly attractive. But the skills needed to effectively leverage and communicate via these channels are still often seen as best handled by agencies fully dedicated to the advertising and marketing space.

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Thursday, September 19th, 2013 news No Comments

Email Leads Real-Time Marketing Channels

source: http://www.emarketer.com/Article/Email-Leads-Real-Time-Marketing-Channels/1010081

Marketers are beginning to focus on getting out real-time messages that respond to what consumers are doing “now.” According to an April 2013 survey from the Direct Marketing Association (DMA), on behalf of Neolane, a real-time marketing technology provider, 77% of marketers in North America said real-time personalization was a high priority.

While there is still some question as to what marketers mean when they talk about “real-time marketing,” the survey found that definitions are crystallizing around one primary idea of “dynamic personalized content across channels.” Subscribed to by 43% of marketers, this response had a 30-percentage-point lead ahead of the next most popular definition.

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Friday, July 26th, 2013 news No Comments

Local Merchants Overwhelmed by the Array of Available Digital Marketing Channels

source: http://www.marketingcharts.com/wp/direct/local-merchants-overwhelmed-by-the-array-of-available-digital-marketing-channels-35221/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink

Reply.com-Local-Merchants-Leading-Online-Marketing-Challenges-July2013A survey of local merchants around the US conducted by Reply.com reveals that a plurality 40% are spending 5 or more hours a week on marketing their businesses, but that the vast majority either have a single person (51%) or no-one at all (37%) managing or supervising their digital marketing programs and initiatives. With few internal resources to draw upon, merchants indicate that the biggest challenge they face with online marketing is that there are too many channels to address, a problem cited by 24% of respondents.

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Tuesday, July 23rd, 2013 news No Comments

CMOs to Rein in Traditional Ad Spend, Press on With Digital Marketing

Source: http://www.marketingcharts.com/wp/interactive/the-shift-continues-cmos-to-rein-in-traditional-ad-spend-press-on-with-digital-marketing-27317/

Despite consumer and marketer beliefs that traditional media advertising on the whole is more effective than online advertising, marketers continue to shift budgets away from traditional media and towards digital marketing channels, finds Duke University’s Fuqua School of Business in its latest installment of The CMO Survey. In this latest survey, CMOs forecast a 2.7% […]

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Wednesday, February 27th, 2013 news No Comments

Inbound Marketing Costs Less than Outbound Marketing; Growing in Importance too

Source: http://www.marketingcharts.com/direct/inbound-marketing-costs-less-12762

Marketers who spend more than 50% of their lead generation budget on inbound marketing channels report a significantly lower cost per sales lead than those who spend 50% or more their budgets on outbound marketing channels, according to the “State of Inbound Marketing Report” [pdf] from internet marketing firm Hubspot.

Average Cost Per Lead $200 Less
The average cost per lead by inbound marketing-dominated firms in 2010 is $134. This is $198, or 60%, less than the $332 average cost per lead at outbound marketing-dominated firms. This percentage differential has remained consistent from a 61% higher average lead generation expense reported by outbound-marketing-dominated firms in 2009.

3 of 4 Major Inbound Channels Cost Less
When asked to rank each lead generation category as “below average cost,” “near average cost,” or “above average cost,” businesses consistently ranked inbound marketing channels as having lower cost than outbound channels. Only PPC (pay-per-click search) had overall cost rankings comparable to those given outbound channels.

Social media and blogs had the highest “below average cost” rankings for both 2009 and 2010 (55% as a combined category in 2009 and 63% separately in 2010).

Trade shows, with their requirements for travel and expenses, as well as space rental and booth setup/removal for companies who exhibit, had the worst cost rankings in 2009 and 2010. In 2009, 55% of companies said trade show costs were above average and only 18% said they were below average. These figures improved moderately in 2010 (48% and 22%, respectively), but still left trade shows as clearly the least cost-effective marketing channel.

Inbound Marketing Grows in Importance
Inbound marketing is continuing to grow in importance at the expense of outbound marketing, according to other findings from the State of Inbound Marketing Report.

As a percentage of the overall lead generation budget, inbound marketing expanded slightly from 2009 to 2010 (38% to 39%), while outbound marketing contracted more significantly (29% to 24%). The net effect is that the gap widened from inbound marketing, which had a 9% greater share of the overall marketing budget than outbound marketing in 2009, to a 15% greater share in 2010. Roughly one-third of the lead generation budget is considered “not classified.”

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Sunday, May 2nd, 2010 digital 2 Comments

The Grand Unified Theory of Marketing(tm) – Digital String Theory

UPDATED:  March 2014

Grand Unified Theory of Marketing by Augustine Fou 2014 Update from Dr Augustine Fou

 

UPDATED:  September 21, 2011

Most people use the term integrated marketing now and it has come to mean loose “integration” or interrelationships between marketing channels, like putting a web address on a TV ad, a QR code on a print ad, etc.

I am adding the following slide called “Unified Marketing – ecosystem of touchpoints” to put forth the concept of unified marketing.  This starts by putting the customer in the “middle” and wrapping their purchase funnel around them. Then we add the 3 concentric circles: 1) on-site, 2) off-site, and 3) third party to represent the types of channels at the disposal of the marketer/advertiser.

Then all tactics can be plotted on this single, unified marketing chart to reveal whether there are any gaps (not enough activity) or redundancies (too much spend).

Unified Marketing – ecosystem of touchpoints

Additional Reading:  Digital is a Philosophy

 

ORIGINAL POST

Just as physicists and mathematicians have been searching for the grand unified theory of the universe, I have been looking for a way to tie together the disparate disciplines of marketing and advertising, a way to correlate metrics from different industries that interrelate with marketing (e.g. market research, Nielsen, etc.), a way to put all past theories in context and perspective (Michael Porter’s Five Forces, Net Promoter, etc.), and a way to explain marketing successes and failures — all in one.

My method is the scientific method – which is simply put doing experiments and making observations that either support or refute hypotheses.

A grand unified theory will also need to be able to take into account phenomena such as social networks, etc. What are the organizing principles of such; what is the value?

Why now?

Using digital tools — such as search volume trends — we can start to correlate marketing spend effectiveness across different forms of media and also different advertising and marketing techniques.  The example below compares eTrade and @Drobo. What is most embarrassing is that eTrade, a well known brand from the first dot-com heyday, spent lots of money creating and airing TV ads which it hoped would go viral. They even paid for Superbowl ads for the last 2 years to promote the “eTrade talking babies” as you see from the 2 spikes in search volume during February of 2008 and 2009.  However, when compared to Drobo (a startup company that developed a very easily upgradeable back up hard drive array), it is shocking to note that Drobo spent NOTHING on advertising and relied entirely on word of mouth and an awesome product. And their search volume is not only larger than eTrade but also sustainably larger despite zero advertising and media cost.  The “totals” even suggest that the volume under the curve of Drobo is 8X (EIGHT TIMES) that of eTrade.

So if you consider that eTrade spent millions of dollars to create the TV ads and even more millions of dollars to air them on TV in order to drive interest, demand, and hopefully new customers, then Drobo can be considered to have gotten the equivalent of 8X more dollars in advertising and media – for FREE using techniques and channels other than TV advertising. So what does that say about the relative value of TV advertising compared to these other, newer techniques?

etrade-drobo-search-volume

godaddy vs megan fox

megan-fox-godaddy-search-volume

Grand Unified Theory of Marketing - Digital String Theory

Grand Unified Theory of Marketing – Digital String Theory

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Thursday, October 29th, 2009 digital strategy No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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