Trends for 2009: #8. Online Advertising will Continue to Grow

As Marketers (perhaps like you) struggle with a tightened budget and getting the best bang for your buck, it will be time for Advertisers to look more closely at the multitude of advertising media that is part of Online Advertising. Consequently, online advertising will grow in 2009. In contrast, almost all other media will shrink dramatically.

During the Great Depression, the "new media" of radio took off. In fact, in every recession since then Radio advertising has fared very well. Expect similar this time around - except in Radio's place, you will see innovations and growth in online advertising.

Now, that said, if you are a Publisher or an Advertising Network it isn't time to start counting your coins yet. While online advertising will grow in 2009, budgets will still be tight, and it may not even grow as much as it did in 2008. Relative to other advertising media however, it will be glowing. Why? Well, the equation might look something like this for an Advertiser:

This Year's advertising budget = Last Year's Budget / 2.
Where do I put that little bit of money?

• Print 2009 = Print 2008 x 1/3
  
• TV 2009 = TV 2008 x 1/2
• Radio 2009 = Radio 2008 x 3/4
  
• Out of Home 2009 = Out of Home 2008 x 2/3
• Online 2009 = Online 2008 x 1.1

Okay ... the math may not make sense, and those numbers are all just a WAG, but the concept stands. Budgets will get cut, and the increase in online spending is going to come at the expense of other media.

What online advertising is going to grow? All of it. Paid search (probably more than the rest), Banner Ads, Video, Online Games and Contests, etc., etc., etc.. Some people are forecasting that this will lead to an overall increase in Cost Per Acquisition (CPA). Maybe, but maybe not. The content and opportunities on the internet are almost limitless, but there are only a small handfull of really popular sites. The CPM (thousand impressions) or CPC (click) will increase on those sites. But as an Advertiser, if you focus on conversions and use an outlet like an Advertising Network that leverages the power of the long-tail, then you may actually come out with a low and stable CPA.

What's a Marketer to do in 2009?

• Do review your traditional advertising spend VERY closely. What worked? What didn't? What is dubious? Slash and burn anything but that which worked. Figure out how you can build on those things that worked.
  
• Do online advertising. Look at how you can be creative with it. Also, look at how you can integrate with traditional advertising that is working. Similarly, look at how you can integrate it with Direct Marketing opportunities.
• Focus on your Cost Per Acquisition. Use analytics and look at all of your online advertising and its performance (including creative, message, placement, etc.). Use this information to tune your ads and your media buys in order to lower your CPA. To lower your media buys, look at options like bulk buys, advertising networks, or even changing the type or mix of ads you are running entirely (e.g. maybe increase your search spend, and reduce your banner ad spend).
  

Will I be right? The year will tell!

• Follow this blog and watch for the next marketing trends I'm forecasting for 2009.
• Feel free to contact Market GoGo to discuss this further.

Trends for 2009: #6. Paid Search advertising (i.e. Google's revenue) will grow substantially again (i.e. Time to invest in Google?)

Web traffic will continue to climb. Web shoppers will increase in numbers. Web surfers will continue to start their purchase process on a search engine. The search engine of choice will continue to be Google, and in fact their share of the search market will grow dramatically.

Simultaneously ... Marketing budgets will drop. Marketing departments will be under more pressure then ever to draw prospective customers in.

So, what is a Marketer to do? In 2009 Marketers will spend more time than ever before focusing on Search Marketing - both paid and organic. Paid search advertising however is the easiest and quickest way to make things work.

It is likely that paid search advertising costs will actually increase substantially in 2009, as more Marketers bid on common phrases. Nonetheless, a good search strategy is still going to be substantially cheaper, much more effective, and infinitely more measurable than any signficant newspaper ad.

Search Marketing strategies to focus on in 2009:

• Do Paid Search Engine Marketing: Oh, and do it well. Track the ROI of keywords and be sure that you are making your money on every word that you are bidding on.
• Work your copy: A paid search ad is just a simple little bit of text. But, it may be the most powerful 12 to 15 words you ever write. Test, revise, test, revise, and don't stop. Make sure that every bit of copy you put out there on those search ads is on brand and works as well as it possibly can. Additionally, customize copy for each search term you have out there. You should have tens, hundreds, or even thousands of ads floating out there in the ether of the search world.
  
• Create Landing Pages: Every paid search bid should have its own purpose-made landing page with your call to action highlighted. No one should ever click on your paid search ad and end up at your home page (or worse, a 404 error).
• Do Organic Search Engine Optimization: SEO is "free" and having a high organic rank will pay off rapidly - even in places where you are also bidding on a relevant keyword. But, to be honest, SEO isn't free and it isn't a one-time project. SEO requires solid resourcing with people who have a good understanding of what they are doing. It is also a journey not a destination. So, you have to be prepared to continually revisit your SEO and tune your website.

Will I be right? The year will tell!

• Follow this blog and watch for the next marketing trends I'm forecasting for 2009.
• Feel free to contact Market GoGo to discuss this further.

Trends for 2009: #3. Direct Marketing will be in vogue

In 2009, Direct Marketing will become critical to an organization’s marketing success.

What is Direct Marketing? DM sends its messages straight at a prospective customer typically with media that is sent "personally" to the intended target. The goal of a DM piece is unabashedly to drive a purchase. Examples of Direct Marketing include direct mail, e-mail, telemarketing, desktop applications, mobile marketing, and RSS feeds. While traditionally it is unsolicited (e.g. that junk mail in your old fashioned mail box, or that phone call at supper time), on the internet DM is moving away from the "porn spam" and is tending to quality in-house opt-in lists or programs.

Why will Direct Marketing be hot in 2009? Two simple reasons. (1) It is cheap. (2) It works. In a tight economy, you NEED to get the bang from your advertising buck. DM does that and it is also uniquely trackable. Act now!

In 2008 the best DM was done by ... Barak Obama. His campaign forged a direct communication link between the candidate and the voter through multiple Direct Means, including mobile text messages, email and Twitter.

Things to focus on in 2009:

• Creating targeted and relevant campaigns that can be executed on multiple DM channels
• Tuning existing DM campaigns
• Ensuring your lists are opt-in and accurate
• Personalizing DM campaigns based on profile, preferences, and interactions
• Treat your email list like gold. Use it carefully. Don't abuse it.
• Focus on your existing customers. Mine your customer databases and create appropriate personalized direct offers
  
• Look at each DM media and look for new opportunities.
  

By the way ... for a few years a common industry prediction has been that RSS will replace email. Email still rules. People still won't know what the hell RSS is. However, if you aren't doing RSS, it is a good time to start. First things first, is to figure out for your customers how they can easily understand the technology and use it. RSS does have slow but solid growth as a strong medium of distributing marketing information.

Will I be right? The year will tell!

• Follow this blog and watch for the next marketing trends I'm forecasting for 2009.
• Feel free to contact Market GoGo to discuss this further.

What went wrong with the Big 3?

What went wrong with the "Big 3"? If you think of any company being made of three core functions:

1. Marketing - Determining the target market, determining what products the target wants, communication with the target, and ensuring that they live up to their Brand Promises,
2. Finance - Determining how to pay for the inputs, ensuring that the outputs are produced as efficiently as possible, and making sure that there is enough money in the bank to keep things running, and
   
3. Operations - Producing products that meets the needs of the Marketing Team, and doing so in a way to keep the Finance team happy.

Then, where did the Big 3 go wrong?

1. Marketing - They had no Brand Promise. What does GM stand for? Big cars? Little cars? Big trucks? Cheap? Luxury? They are trying to be everything to everyone. Taking on the Luxury German market and the low-cost Kia market. Yuck. Stuck in the middle. They stink, and thier products suck. Why would I buy a "luxury" Cadillac that was based on the same platform as the "work horse" GM truck? The Big 3 lost a grip on who their target market was, what they wanted, and how to reach them.
   
2. Finance - Was no one watching the books? It is disheartening that in light of recent financial scandals like Enron, and with all the subsequent "SOx" and Governance oversight that is supposed to be in place, that NO ONE from these Big 3 was sounding the horn louder and sooner that they were all headed for bankruptcy. Who is at fault here? The Finance teams in these companies should have hit the big red button several years ago. Surely it was evident that costs were spiralling out of control.
   
3. Operations - Are the unions to blame? They clearly need to share the blame. Mind you, some MORON in the Finance department must have agreed to the ridiculous contracts that the unions have negotiated over the years. Also, the MORONS in Marketing continue to get the Operations team to build products that their market might have wanted 3-10 years ago, but doesn't give a rats ass about now. So, as long as the Operations teams are building out the automobiles that they are told to, and doing it under the agreement of the Finance team, I'd have to think that they should carry less of the weight. That said, responsible Unions and Management teams should be constantly working together to figure out the most efficient and practical way to produce.

My verdict ... The auto sector has to be "bailed out" simply to prevent them from bringing down the entire economy. However, conditions on them being allowed to receive bail-outs should include:

• Bail-outs should be either high-interest loans (they are risky after all), or equity
• Executives should be forced to resign (with no golden parachutes) and should be replaced with people with real vision
• Each company and each sub-brand should have to put a REAL marketing plan in place with a real brand position. Overlapping brands should be eliminated. (E.g. Big-ass Chrysler SUVs and Big-ass Jeeps? Big-ass Chrysler cars and Big-ass Dodge Cars? GM, Pontiac, Buick, and Cadillac? GM Trucks, Cadillac SUVs, and Hummer?)

I'm no expert on Finance matters, so I won't comment on those, except to say that the classic Porter strategies state that these companies should either be low-cost, differentiated, or niche. The automobile market is mass-market, so they had better all be thinking Low-Cost. To review ...

Low Cost: The low cost leader gains competitive advantage by being able to produce at the lowest cost. You can sell things for the same price and have more profit, or more cash to do battle with, or win a price war and still make a profit.

There's my rant for today. If you are from one of the Big-3, and want help doing a Brand Audit in order to get on track with your marketing plans, don't hesitate to contact Market GoGo.

What will happen with your Marketing Budget?

According to a new survey which is featured on BtoBOnline.com most Business-to-Business (b2b) Marketers intend to maintain or grow their budgets next year. This is interesting - even exciting - news when faced with the ongoing reality of the growing recession.

From the article:

"The online survey of 211 b-to-b marketing professionals was conducted in November. It found that 31.1% of marketers plan to boost their marketing budgets next year, while 43.5% plan to keep budgets flat. About one-quarter plan to decrease their marketing budgets next year.

"Significantly, of those planning increases, one-quarter intend to raise them by more than 20%, and nearly 9% plan increases between 15% and 19%."

Echoing the results of a MarketingProfs survey featured in this blog last week, the BtoBOnline study found that marketers will focus on web marketing, with 66.5% of marketers planning to increase their online spending. The reasons are pretty straight forward - online costs less than traditional media and delivers trackable results.

It is time to get started on your online marketing and advertising. Market GoGo can help you plan your Web Strategies to help you attract prospects, convert prospects to customers, upsell and cross-sell, serve your customers online, and get your customers to come back for more.

Contact Market GoGo to get started.