In this month’s edition of Car Dealer Magazine, G-Forces’ Tim Smith looks at why increasing amounts of companies are moving their marketing budgets away from print and into online marketing and the importance of the medium during a recession.
As stated in my previous column, marketing and advertising remains an important and key element of your business during a recession and one of the most effective ways of delivering your message to the widest possible target audience is through online advertising.
The internet has grown exponentially since its commercial introduction in the early nineties and, as every new medium consumes its predecessor, so too has the amount of budget given over to online advertising from budgets.
In the UK alone, spending on internet advertising reached £1,682.5 million in the first half of 2008, a massive increase of 21% year-over-year. This was in a pre-recessive market place and while marketing budgets overall are predicted to decline over the coming year, the percentage amount of budgets given over to online advertising is still predicted to grow.
Research from Netimperative gives a clear example of the import now placed on online advertising. While 31% of advertisers will decrease their television expenditure and 40% of businesses are lowering their newspaper ad spending, 73% of businesses will increase their online ad spending.
From a personal perspective, an increasing amount of our automotive clients have been reducing their offline marketing spends in favour of web marketing and advertising as it has greater results in terms of cost-efficiency.
But why? Well, put it this way: if video did, indeed, kill the radio star, then the internet took video, along with radio and television, and bought it to an even wider and audience then let them share it with their friends via social media sites. Not only that but the sheer size of the online audience is one that advertisers can no longer ignore and now serves as a reflection of the demographic make-up of the UK as a whole.
If the rumoured 85% of advertising pre-internet went unnoticed there’s potential for online advertising to prove equally ineffective given the size of the audience. In fact, a streamlined and targeted online advertising campaign can not only lower that percentage but, by aiming your message at an audience with a known interest in your product, can increase the chances of conversion.
Automotive dealers can now focus their online advertising and deliver it to their target audience be it through advertisements on motoring blogs, automotive forums or PPC advertising on specific search terms. In short: online advertising gets the message delivered to those who want to see it when they want to see it and are thus more likely to follow up on it.
As companies streamline their budgets and search for more cost-effective and result-driven advertising campaigns, it’s no surprise that the spend on online advertising and web marketing is predicted to continue growing with a 17% growth expected for 2010.