Anews item in the June 24 edition of Precision Marketing points out that during the first quarter of this year, direct mail (both B2B and B2C) declined in expenditure by 8.8 per cent. In the same period, according to the Advertising Association, growth in Internet spend rose by 51.5 per cent. On the next page, there is ironically a full page ad for Google AdWords. It is of course ironic that one of the main recipients of the growth in Internet spend is choosing to advertise offline. The Google ad is mostly a testimonial from a business saying how much more efficient and what better value Google-based advertising is than online advertising. To prove this, Google are offering a £20 voucher to induce people to buy their keyword advertising. However, since the call to action is to visit google.co.uk/kleywordsadvertising it is little wonder that their offline ads may not generate the response they desired.
Nevertheless, it is a phenomenon we have all noticed: Internet spend is growing exponentially when compared with other marketing media. It seems that at last and several years later than all the pundits predicted the Internet is actually proving to be a useful and valuable addition to the media mix. But how is this affecting the world of B2B? Is it just an FMCG trend?
Actually the consensus amongst ABBA members is that this trend is even more pronounced within B2B than in the hallowed consumer markets. Indeed, amongst recent new ABBA members we are very pleased to welcome agencies who specialise in online media marketing. In a recent survey conducted by the American magazine BtoB, their readers noted that their online spend including website renovations and search engine optimisation would take a much larger share of total marketing spend in 2005.
So why is the huge growth in Internet marketing so prevalent in B2B?
More than any other source, the Internet has become the preferred choice for discovering information. Consequently if your prospects are looking for a new supplier, then the Internet is more than likely to be the first stop for research. You want your company to appear on the radar of anyone researching for anything that you sell. So a vibrant, user-focused website is a priority. And of course, it’s no good having a world class website without any visitors therefore search engine optimisation is a critical part of the mix.
Online advertising, which for so long has been limited to somewhat irritating and intrusive banners as well as tediously interruptive pop-ups, has now come of age. Rich media has actually made online ads so much more interesting and attractive to the reader. Technological advances, like the increase in broadband access, have really helped online ads to convey huge amounts of information and be far more creatively exciting than they used to.
Targeting through email campaigns can also be incredibly effective. Despite the obnoxious activities of spammers and the constant stream of encouragement to buy drugs of dubious provenance and inappropriate medical aids, sensible business email is usually welcomed by busy people, especially if it is informative as well as salesy. In a business context email data is easier to come by and use than data for consumer audiences. It is, of course, far cheaper than direct mail to create and disseminate.
But before we all get carried away and rush off to cancel all our print advertising, direct mail and other promotions, it is worth adding a note of balance.
Firstly back to the beginning of the piece. Isn’t it interesting that Google chose to take out a full-page ad to advertise its own advertising medium? (And if anyone from Google is reading this in my humble and very personal opinion not using a very interesting or appropriate ad either.)
Secondly do you remember the days when we all really believed that the Internet would replace newspapers and magazines? I still don’t see people reading the online version of The Times on the Northern Line at eight o’clock. Business media is still a £13 billion turnover industry in the UK.
Research for the PPA conducted by BJM has shown that amongst the 200 key industry advertisers polled, 64 per cent thought that business magazines were the most suitable place to advertise, whereas only six per cent thought the Internet was the answer.
Fifty seven per cent thought it was the best medium for raising the profile of the company or its products, whereas only four per cent selected the Internet. Reaching a target audience effectively polled 37 per cent for business magazines, 36 per cent for direct mail and just six per cent for the Internet. The Internet however, scored far better when considering value for money.
So, returning to Google. It is obvious that the best use of media for a B2B message is one that considers all the options. Even the ubiquitous Google needs to mix their use of media, and of course we all know, as B2B marketers, that the best way to elicit response, generate recall or enhance recognition of your brand is to integrate your campaigns across the most appropriate media for the campaign you are planning, which is, of course, another subject.