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IABUK : Internet ad spend grows 4.6 per cent

Online advertising expenditure grew 4.6% to £1.75 billion in H1 2009, overtaking TV for the first time.

IAB figures show ad expenditure online up £82m to record market share of 23.5%.

Wednesday, 30 September 2009

In the first half of 2009 internet advertising weathered the recession and grew by 4.6% to £1,752.1m, despite the entire advertising sector contracting by 16.6% during the same period.

According to the bi-annual online advertising expenditure study from the Internet Advertising Bureau (IAB) - the trade body for digital marketing - in partnership with PricewaterhouseCoopers (PwC) and the World Advertising Research Centre (WARC) - the internet has now overtaken TV advertising to become the UK’s single biggest advertising medium.

The UK remains the world leader in terms of market share for online, with the medium accounting for 23.5% in the first half of 2009. The results signal a significant restructure of marketing budgets as advertisers follow their audiences online and look to the internet for even more measureable and accountable methods.

Search, classifieds and online display

Paid-for search continued to grow, proving itself a mainstay of marketing budgets with a 6.8% increase from H1 2008 to H1 2009. As the purest form of direct response advertising, search is proving recession-friendly with marketers investing £1.05bn during H1 2009, which equates to 59.8% of all online advertising expenditure.

Despite the property market crash and stalled automotive and recruitment sectors, classifieds grew by 10.6% to £385m – or 22% of all online ad spend – reaping the benefits of the continued migration of advertising from print to online formats.

Online display was down 5.2% year on year to £316.5m, with an 18.1% share of all online advertising revenues. Online display buoyed a tough year as all other mainstream media saw a double digit decline.

More: IABUK : Internet ad spend grows 4.6 per cent

The 14 Ps of Mixed Media Marketing - Part 14

Performance
The most important indicator in marketing is, of course, performance. After planning and implementing your marketing strategy; you should determine how well it performed. Monitoring your marketing performance will help you tune your marketing into the future. It is crucial to more effective and efficient marketing.

The key area that you should monitor in a mixed media marketing campaign is the placements. If the message has been distributed properly and has reached your target audience, then the placement has performed well. Poorly performing placements will not reach your audience. This comes with precision. The more precise your placements are, the more efficient your marketing will be. If your marketing is being wasted on those who are not at all interested in your offer then it will not perform.

Invest marketing into a product that serves the market’s needs. Any advertiser can bring prospects to learn about your product and make enquires, but you will have a difficult time selling if the product does not live up to its expectations. Performance must also be measured by actual sales in volume (units) and value ($) or ROI (profit).

Promotion can be measured in coverage, visits, impressions, clicks, enquires and actions. If you reach the anticipated numbers in any of these areas, then your promotion has been successful in that respect, regardless of sales. If the sales are low, then you need to tune your marketing. It could be the messages, placements, people, price, brand personality or environmental factors that are preventing people from buying. Continue doing market research so you can identify what needs to be improved.

The 14 Ps of Mixed Media Marketing - Part 13

Processes
To get anything to work in the way you want it, you must follow a process. Although all of these Ps of marketing require their own process, the process behind organizing the promotion, setting the price and deciding the best placements can take a lot of research. Getting these things right is important. You may not get them perfect from the onset, which is why pliability is needed. They may need change depending on the rest of your marketing mix.

Finding the right messages and deciding the presentation of your promotion is a consuming process. What are the most effective messages? What is the best way to communicate it? This requires research and trialing with the market.

What price should you charge? What does the research say? What value does the market see in your offer? Study the consumer behavior around the pricing perceptions of your product and what consumers expect to be buying; are you a quality, fast or low-cost solution or a combination. How are you going to price for your product’s benefits? This is a process.

As your research your audience, you will find the best places to market your offer. Finding placements is a process. What might sound suitable, may not give you the results you expected. There could be issues with your message or the placement. Online placements are faster to test because the results are almost immediate and adjustments can be made quickly and at no cost.

This is where marketing pliability comes in. Processes in mixed media marketing are used to fine-tune your marketing. Establish a method to improve your marketing, one thing at a time so you can see the difference each change makes.

The 14 Ps of Mixed Media Marketing - Part 12

Permission
This is very important P in online marketing. “Permission marketing” is a term used to describe the process where customers signup to receive e-newsletters. It is usually a reference to email marketing. However, permission is needed in all forms of effective marketing. You need some form of permission to get your message in front of the customer and another permission to get into the mind of the customer. With full permission, customers actually want to receive your message and are therefore, more willing to respond.

So how do you get this permission? Permission is a result of targeted advertising. Email marketing is the best example because the customer has decided that they want to know more about your product. Displaying your ad or having your message in places where your target market is (both online and offline) is a form of permission.

Think trade shows. People come to your industry tradeshow because they want to get information about that industry. You are in the place where your market expects you to be. It would be inappropriate to have a typical financial services ad on a children’s TV channel. It is equally unexpected to promote toys using financial keywords in Google AdWords. According to the customer, you are not permitted there. Only messages that are relevant to the audience are allowed in that space. This is where mass marketing falls short; it cannot be targeted enough. People switch off ads unless it is relevant and interesting to them.

Your message has to be acceptable to your audience. Analyze their personas, their values and beliefs. This will determine it’s appeal and if people will respond. The way you gain permission will need to be pliable; one appeal will not work for everybody. You may need several approaches, each targeted to different personas and people. Get permission through your promotion so your message will be accepted by your market.

The 14 Ps of Mixed Media Marketing - Part 11

Perception
Marketing can be seen as essentially the management of how people perceive things. Much of marketing is about creating and shaping an image in the customer's mind. That is why it is important to monitor the perceptions held the marketplace AND of the company.

How does your company perceive opportunities and threats? The way you and your company perceive the current and foreseeable economic climate will have a massive impact on how you will do business today. How open is your company to new marketing ideas? How much research is needed? What do you expect from your marketing efforts? Is the company complacent or fixed in its ways? The way the brand and products are marketed is greatly influenced by the perceptions of the company.

How does your target market perceive your company, products and brand? What do people like about your brand and products? What don’t they like? Why do they choose you and why do others choose the alternatives? Customers form perceptions of the people and brands they do business with. It is the marketers job to align these perceptions with the desired perceptions that the brand should have. It is also the responsibility of each member of the business to create these perceptions as they interact with customers. Whether it be through a marketing campaign, face-to-face, on the phone, email, or online communications such as blogs, social networking or your website.

Market perceptions should be tracked in marketing research.

Perception is built from the personality of the brand, the people who take in your message, the qualities of your product and the effects of your promotion. However, placements, personas and price can also influence perception. We can establish another square of the Attractum® diagram.

The 14 Ps of Mixed Media Marketing - Part 10

Price
Price from the traditional 4 Ps of marketing is still relevant today. Pricing strategies have evolved from loss leader pricing, penetration pricing, price skimming and differential pricing strategies. Because it is so easy to do comparison shopping now, people are looking for a deal. Value pricing is more important than all of these.

People will pay more for an item if they can perceive the value in it. What would your market pay for your product? If you are marketing it correctly, selling your benefits, you will often be able to charge more than what a customer says they would pay. Common benefits are convenience, ease, uniqueness, skill, experience, leadership and so on.

The price you put on your products and services will also cause a connotation in different markets. A low price can be seen as a bargain and obvious choice or poor quality and amateur. A medium price can be perceived as reasonable and fair or average quality and not spectacular. A high price can indicate a rip-off or excellent quality and exclusivity.

The message is to make pricing decisions according to the market that you are targeting. You do not need to care about what other markets think. The same price cannot appeal to all markets. This is why there are different brands selling similar, comparable products at different prices. In time, if your pricing is consistent, your brand will connote a certain price bracket in customers mind.