Tag Archive for 'advertising'

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.

Is Google becoming an Agency?

Yesterday, Google finalised their acquisition deal of DoubleClick, a company that offers an awesome range of online marketing products to advertisers, publishers and agencies.

One immediate question comes to mind:
What does it mean for all other agencies and Adwords advertisers?

In my opinion, it sure looks like Google is trying to position themselves as an agency. Just look at features on Adwords like the Conversion Optimizer, Budget Optimizer, etc. Now that they have a full blown campaign management system at their disposal, I think it might become increasingly difficult to sell bid and campaign management tools, etc as Google releases them for free on Adwords. This means that agencies will have to make greater effort to position themselves as marketing specialists and not just service providers with great tools. More companies will most likely do or try to do their marketing campaigns in-house.

If you take a step back and look at the internet and how it has become more user friendly over the past couple of years, especially with the immersion of web 2.0, one can start to see a trend. A few years ago, companies had to pay fortunes to get websites done for them and pay even more to have a content management system behind it. These days, with hundreds of web development tools, content management systems and blogs freely available, it has become much easier and cheaper to get your company online. I believe the same is happening with the marketing of these sites. It’s fast becoming much easier to effectively manage your own campaigns, etc. with the launch of every new product. The difference is that when you want an exceptional website or an exceptional marketing campaign, you still and will always need a specialist with passion for what he or she does, in order to make the project stand out from the rest.

In the long run I believe there will always be a need for specialist online marketing agencies as online marketing is not a science, but rather an art form, which needs a passionate artist to make it a big success.