The world of marketing has changed a lot the last 15 years. Companies have abandoned the billboards and newspaper ads in favor of a digital alternative. Digital marketing services now represent a huge part of all advertising revenue, and it is a rapidly growing industry because of the ease of entry and cost effectiveness.
The traditional marketing offers two clear advantages: reach and real-world communication. Some digital marketing services won’t reach the entire population (such as the elderly people), and with the oversaturated digital marketing environment it can be very difficult to stand out from the crowd. You can also target certain demographics more easily, through a billboard in a specific area, or by placing an advertisement after a certain TV show for example.
However, the passive nature of this type of marketing can be a hindrance. Because your customers aren’t interacting with your product, they can simply ignore it, resulting in a huge investment with minimal results. This low response rate may make the huge investment cost of traditional marketing techniques unavailable, particularly when it comes to smaller businesses.
The new wave of social media based advertising is useful for three main reasons: 1) it is cost effective, 2) it is easy to attract new customers when you use social media platforms where people already are and perhaps most importantly, 3) with online marketing there is a much higher conversion ratio between interaction with the advertisement and purchase of a product. All the digital marketing services can build a really comprehensive brand identity: if you can create a wealth of content, and develop brand image.
The only real downside of digital marketing is that due to the playing field level, it can be incredibly difficult to create a space for yourself in the marketplace. But then, this is true in business generally. Another downside might be the fact that your customer base has to actually interact with your advertisement, leaving out potential customers who avoid your advertisement on principle.
However, whilst both of these types of advertising are effective in their own way, a company with ambition will attempt to use both. For example, a toy company might put a 30 second advert on the TV for their product on a Saturday morning so that the child can create the demand, and then might use Facebook to remind the parent to buy the product. In this case, you would have a brand identity which would be consistent, but the phrasing and type of advertisement would be targeted.
Whilst this is not always possible, for a starting company a good rule of thumb is investing 20% into traditional media and 80% in digital marketing services.