Author Archive for Mandy

Economic crisis is good for online marketing

All the stats, research and opinion pieces I have read lately show that online marketing is rapidly gaining a bigger piece of the marketing. Personally I think the overriding factor that enables marketers to justify online spend while cutting back on offline spend is measurability and ROI, specifically identifiable ROI.

With online marketing campaigns, such as Google AdWords campaigns, we can track just about everything to do with each “click” and each “keyword” therefore being able to make daily, weekly and monthly changes that ensure that your budget is being spent in the places that actually deliver direct results.

If you you are selling a service and the actual transaction takes place via a differnet channel (i.e.therefore not trackable online) you would be wise to make sure that you develop a system that can also match the online leads/enquiries to actual sales.  Most online specialists will have some experience in this process and if asked should be able to offer valuable insight into how to set-up this process.

No more needs to be said about the value of tracking the advertising cost for each sale! A marketers dream!

This article by Paul Vecchiatto on ITWeb offers insight into the e-marketing boom despite the economic downturn:

http://www.itweb.co.za/sections/internet/2009/0903101038.asp?S=e-Business&A=EBU&O=FRGN

Representing Competitors in Google AdWords

When it comes to ethics and search marketing there are some very dubious lines that are and have been skewed by search marketing companies in South Africa owing mainly to the lack of knowledge of their clients.

That said, it is a rapidly expanding industry in this country and indeed worldwide and on the flip side there are some agencies making great efforts to improve the SEM (Search Engine Marketing) service that they offer to their clients. The nature of the South African entrepreneurial spirit also means that associated technology, tactics and angles are in hot pursuit as South Africa and specifically Cape Town positions itself as viable global ICT hot spot. The existing and potential foreign investment and outsourcing to South African SEM and ICT companies has far reaching effects for our economy and job creation. Furthermore, in terms of SEM, the nature of Google’s global system opens endless opportunities for local companies to represent themselves to foreign markets through a cost effective and measurable medium.

Google has not released figures of how much South African agencies collectively spend with Google on their clients’ behalf but if we take what our small agency spends for clients it must be many millions of dollars per annum and that is to err on the side of conservative estimation.

The problem facing the growth of this ‘heaving with potential’ industry is primarily a lack of skills in the arena. That will change in the not so distant future as companies like ourselves are forced to train graduates in the way of SEM. The more pressing issue is the fact that there are not enough specialist SEM companies to service the growing interest and need for fulfilling the requirements and needs of the local market. And this brings us back to the question of ethics.

Simply speaking it is counterproductive for an SEM company to represent clients who are competitors on some level. The very nature of the bidding system used on the Google Adwords system, for example, means that representing competitors causes the agency ends to bid their clients’ against each other. This in turn increases both clients advertising spend.

Turning away clients is not something any company wants to do but in certain instances it is vital in maintaining the trust of existing clients and maintaining a level of ethical marketing and advertising that would apply to offline agencies.

In terms of traditional advertising agencies, we wouldn’t find BMW and Mercedes serviced by the same creative agency now would we? And that’s without having to consider the added complication of directly increasing their respective advertising budgets!

We are having to turn away business because companies that are seeking our services are direct or indirect competitors of existing clients. Traffic Brand feels very strongly about maintaining honest relationships with our client base and is not willing to compromise these relationships for new business however tempting the associated income might be.

Sadly there will always be agencies that cross these lines. But as the industry expands and marketers become wise to the risk of entrusting their online campaigns to unprincipled organisations the demand for exclusivity will increase.

This begs the question of how we, as an industry, can responsibly expand the SEM services available to South African companies without compromising on ethics and without adding to our own competitors’ market share.

Online Travel Focus

Yes its been a while since we wrote on our blog! Tut Tut! But moving offices and other exciting changes had us running around like wild creatures for a few weeks. Things are settling into a manageable pace again so hopefully some more chatter from the Traffic Branders is on the cards.

I have also put some writing efforts into a new travel industry blog which has been consuming my words :). Online Travel Focus is a great new blog focussed on information and challenges facing the South African tourism industry’s online presence. It has some very informative topics and articles and provides a great resource for the web savvy travel industry experts to keep abreast with developments in the field.

Online Travel Focus is run by Paul Hobden who recently returned to South Africa after many years in the UK. Paul was also instrumental in hosting the successful Online Travel Summit last month. His focus on research and disseminating information for the wealth of local online travel companies promises to fill a much needed gap and I am sure that his expertise will add great value to our existing knowledge pool.

What is the continued obsession with Flash Sites?

aaaarrrgghhh! Maybe you could get away with it if you had some direct satellite link to the bandwidth Gods…but please flashy people - have you never tried to surf the net in South Africa and had to wait 5 minutes for a site to open because it’s all flash-based? I beg you to do some more research in your chosen field. No-one’s denying that flash elements on a website look great and are super useful and there are some brilliantly designed flash websites that actually work and load quickly. You good developers are exempt from my rant! It’s the old school flash sites that show you the loading bar percentage process that are my particular gripe. It’s a fact. Our bandwidth speed and consistency in South Africa is a problem. A site that takes ages to load because of shoddy development work…well you can certainly count me out and tab me up with your other frustrated potential clients.

Does the South African Market understand Online Marketing?

Of course there are several companies who have finally caught on to the worldwide trend of transferring a large percentage of marketing dollars to online channels. But as a whole I would say that there is still a severe lack of comprehensive understanding of the opportunities that online marketing and specifically PPC can offer South African companies.

I was pretty shocked yesterday when I spoke to the marketing director of one of the biggest car rental companies in South Africa when she said that she already has “an online strategy because she has a web designer”. EEK! Dangerous territory for a travel related company. Especially when the web is the preferred channel for 50% of UK users searching for financial and travel items. [Source: Equi-Media, February 2006] and that an industry study revealed that nearly 75% of travel buyers used search engines before making a purchase. [DoubleClick / Performics / comScore, “Search Before the Purchase”, March 2005].

Whether your travel company is an online operator or not it stands to reason that an effective online marketing strategy is vital to your survival.

I also spoke with someone who has an inside interest in one of the major food and beverage retailers in South Africa who was also at his wits end trying to convince the big marketing honchos of the need for and the effectiveness of search marketing.

It is amazing to me that anyone in marketing has no interest or understanding of online marketing channels. Even if they are over 50 and have to get their children to set-up their online banking profiles…one would think that on a professional level they would hire a young online marketing professional who could source and manage relevant agencies to establish their brand’s online profile.

These two incidents revealed to me just how much revenue and indeed national and international exposure big corporates in SA are missing out on.

It is my opinion that the South African companies who are already operating in the online space or who are considering including it in their marketing mix in the next year are going to have a massive advantage over their competitors who are too intimidated by online marketing to even consider its worth. These ostriches who bury their heads do not realise that online advertising is a multi-billion dollar industry already in the US and that every day they shy away from the leap to online is lost revenue and lost branding opportunities.

There has never been a more targeted channel that provides such massive opportunity for feedback on consumer preferences and purchasing habits. Wakey wakey Marketing head honchos!