A lot of the talk in marketing lately revolves around the shift from traditional to digital marketing, a factor that sustains the sector’s growth. In fact, if you look at leading marketing publications like Ad Age and Ad Week, most of the articles these days either feature digital marketing initiatives or include significant references to digital.
This is not a one-to-one shift in spending (e.g. for every $100 in traditional before, $100 has moved to digital), rather budgets are being reallocated to include digital. I recently heard one marketer say that the problem is that companies think they should be able to spend less on digital than on traditional because digital is more efficient. Actually, that’s not the case.
Digital can be more efficient but it is much more complex than traditional marketing and thus requires a new, more sophisticated approach to budgeting. On the other hand, digital is so much more targeted that the relevance is higher and returns are better because targeted, more relevant marketing generates more results. It's not a shotgun approach. So marketers and advertisers should keep an open mind on the budget question because it’s no longer about impressions-- it’s about actions.
Here are some of my observations on trends in digital marketing as we enter the new decade:
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