I’ve been thinking a lot recently about the ever-changing landscape when it comes to online marketing and the services that entrepreneurs and corporations buy from digital marketing service agencies.
In recent times, many of you may remember the news about a number of corporations pulling advertising dollars from YouTube, leaving several prominent YouTube content creators very upset about declining revenue, and I’m sure Google and YouTube aren’t. they were pleased. about the situation either.
Then I read that Proctor & Gamble, a major investor in global digital marketing, recently cut more than $140 million in digital advertising due to ineffective online ads. Why did they say these ads were ineffective? The top two reasons cited were that many of their ads ended up attached to content of objectionable quality, meaning YouTube couldn’t discern which channels were good places to place these ads, and companies got their names and ads associated with the content. they did not want to be related in any way. And second, a lot of their ads were landing on channels and places where “bots” would look at the ads instead of human eyes. And bots don’t spend money on products, so these ad dollars just went to waste.
The funny thing was that after these ad cuts occurred, these corporations saw virtually no loss in sales or business growth. The only thing that changed was the increase in the percentage effectiveness of ad spending in relation to sales.
In March, JP Morgan Chase cut the 400,000 sites it had allowed ads to be placed on to only about 5,000 pre-approved sites, and as its chief marketing officer, Kristin Lemkau, quoted the New York Times: “We haven’t seen any deterioration in our performance metrics “since the change”.
In recent years, we’ve seen corporations steadily move away from spending money on TV advertising in the direction of digital advertising because, frankly, you could get a lot more leads per dollar spent online. Many digital marketing companies enjoyed spectacular growth in just a few short years due to this media windfall.
For a while, it was a utopia, but now corporations are learning, as the examples above show. Now they are creating the statistical charts and graphs they need to show their management teams how effective their media spend is. And now they can discern where their investment is missing and dig into those statistics to find out why, which is why you’re now seeing these types of downswings happening across the corporate landscape and statements. being made as to why the cuts are taking place.
To get the media spend capital from these corporations today, it is becoming increasingly apparent that digital marketing service companies must be prepared to show statistical evidence that the money spent will generate the anticipated financial returns. And as a marketing company, you’ll need to be able to start answering questions about how you can manage your funds so that real people and not bots see the ads that are placed and that the ads are placed in quality places, sticking to quality. delighted. If you can’t, you may end up getting hacked just like the 3,500 websites that had profited from JP Morgan Chase’s ads.
In short, it is getting harder and harder to be a digital marketing company and it will get even harder. Online marketing service companies will have to do more due diligence as they find places to spend corporate advertising budgets. And more due diligence means more work that will reduce profit margins. However, if you want to stay in business for the long term, it’s something you’ll have to be good at. Those that do will get additional business from advertising companies that don’t.
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