On its surface, this topic is a “status quo” topic, one that fits into the traditional advertising model that says radio, television and print are channels therefore the Internet is a channel too. Agencies and old-school marketers feel comfortable when discussing digital as just another channel. They figure if a portion of their budget allocated to digital and they tweak their messaging to match the medium then Whoalla! we are all new-age digital marketers.
The problem with this approach is it assumes consumers are the same and want the same messaging pushed at them to interfere with their online entertainment just like they consume television or radio entertainment. Consumers have changed! Consumers do not shop the same, communicate the same, consume content the same nor do they react the same to advertising. When it comes down to it this topic cannot be about marketers adding a new channel, it has to be about those marketers who can adopt to changing consumer behaviors and those who cannot.
Consumers no longer want to be talked at, they want to be engaged with. They want to see who prepares the food and talk with the baggage handlers, they want to feel they have a voice in determining the features of their next car model and want to help select what charities their soda maker donates to. The majority of companies today are not set up to handle this new consumer. Decades of closed systems and legally approved content are getting in the way of companies trying to interact with the consumer.
So what is this post about then? Even though consumers are changing their behaviors by the second, companies can not move that quickly. Companies need to have some transition period to move from traditional to digital and it’s not just in the way they advertise. This is a cultural shift, a systems shift, a shift in processes and approvals to a more distributed workforce. This is much more than simply a messaging shift.
This post is about transitioning. Many times, the only way to move the needle or to convince traditional executives is with proof. That proof comes in comparing what they already know and are familiar with and in a way that they understand like reports and measurements that can compare traditional apples with digital apples (apples to apples). If you measure traditional marketing with reach (ie. magazine has 100k circulation + 2 times pass along and costs $5k) and sales (call volume rises when our infomercial airs and conversion increases 12%) then your digital marketing reports cannot use language like followers, subscribers and linkbait, they must be consistent. The good news is with proven success comes additional funding and a higher tolerance for experimentation.
Once you are able to measure and report consistently across traditional/digital and begin to show positive results, how do you determine how much is the optimal amount to spend on each? Again, a fully integrated interactive marketer does not allocate a bucket of monies per channel. Integrated messaging and consumer engagement is determined by the need at the time. If a customer makes an online mess, it may require an online video response or it may require an actual television ad to express your point-of-view. In order to stay flexible and meet your daily needs you cannot have a pre-allocated budget based on channels that was set 9 months ago.
In staying with the theme though, you need to be able to show value as you transition from traditional advertising to more integrated. You have to show that any investment is worth the return before executives will release additional funds and approve more experiential marketing. In light of that, what is the right mix? Ford transitioned 25% of their marketing budget to social. Seems like an arbitrary number but what is the right mix for your company as it transitions from what it was to what it needs to be?
To help us get a better handle on the right marketing mix for your company, we are bringing in a moderator this week who not only understands the measurement and monitoring side, she also understands the business side and promotes the advancement of companies into a more integrated marketing approach. Amber Naslund, the Director of Community at Radian6, understands organizational change is just as important as technical change is and knows how to get people there. While there is before digital (traditional) and after, more importantly there is a during or a transition that not many can talk to except Amber. This week’s topic and supporting questions are as follows:
Topic: Managing the Marketing Mix: Which Channel is More Effective?
Q1: How do you know your traditional marketing efforts are effective?
Q2: How do you know your digital marketing efforts are effective?
Q3: What is the right budgeting mix between traditional & digital?
Be sure to join us Tuesday April 27 at noon Eastern and participate by following #sm57 from any Twitter client or simply goto our LIVE page during the event.