Lately, companies have been shifting more of their advertising budgets – at least 25 percent – from traditional marketing toward digital/online efforts. While it may seem smart to shift dollars online to where people are spending more time, it raises questions that can dramatically affect your profit structure.
Being online where people are doesn’t mean they’re in the active purchasing mode; the response to most online advertising is extremely minimal. When it comes to your digital marketing efforts, how realistic should you be about the return on your investment?
Questions to consider: Which platform best reaches your potential customers? Will you use the platforms as a medium for customer service and retention, sales, or special events and news? Can your messaging influence a purchase?
The digital landscape covers a lot of platforms that may or may not suit your needs; how do you find out what’s best for your business? Ask your customers how many brands they follow on Facebook and Twitter and what their expectations are of being a fan/follower. Understanding the social media habits of your customers could reveal the key to effective allocation of your digital dollars.