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.
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!
