Last Updated on November 4, 2020
In 2014, nearly 50% of businesses claimed that they’ll be increasing their advertising budgets.
Where is it all going? Most of it is going to Social Media Marketing and email marketing.
Thousands of books and millions of blogs over the past decade have been pumped out, all citing mind boggling statistics about the explosive growth of Social Media.
Among the statistics, are those which reveal that Facebook has enough users to populate an entire country, that more people use Twitter isn’t far behind, and Pinterest went from being unknown to having over 70 million users in record time.
Hundreds of Social Media “Experts” have popped up like mushrooms after a summer rain, all of them ranting about the “new rules of marketing” and how your business needs to be on Social Media “or else…”
Or else what? Or else your company will fade off into obscurity? Or else your company will soon be wiped off the face of the planet by the tsunami of Social Media? It certainly seems that Social Media is a huge factor in modern marketing…but are these “experts” telling us the whole truth?
Here are a few things to consider…
Company Spend Isn’t Always the Best Indicator
Don’t be fooled by statistics about increases in marketing spend. Look, instead, at the statistics which reveal how consumers are spending their money.
Anyone who has been in business more than a few years knows that marketing budgets aren’t always spent wisely. Many times, money is invested into things that are popular, without a consideration of whether the media channel will prove an effective way to reach customers.
For example, articles in Forbes.com and poll results from Harris Interactive have revealed that direct mail is still very much alive as a means of reaching customers. Email open rates have been rapidly declining over the past few years, while direct mail response rates are on the climb.
Companies Might Not Know What Social Media Really Is
This might sound ridiculous, but if you look at the way companies are advertising on Facebook and LinkedIn, you’ll realize that many of them are simply treating Social Media sites as another channel for direct marketing.
Their fan pages might have little or no engagement. There are no two way conversations going on between them and customers or between their customers. In other words, there’s no socializing going on, and many of these companies have reported that they don’t know whether their Social Media marketing efforts are producing any real results.
The statistics about Social Media site usage aren’t all that they seem to be either. Articles in Businessinsider.com and reports from CNN are revealing that tens of millions of Social Media accounts aren’t even real. Spammers create Social Media profiles to advertise pornography and dating sites and shady “make millions from home while working in your pajamas,” offers.
Companies offering bulk Facebook likes and Twitter followers create fake accounts in order to build the illusion of popularity. Some of them offer their services for as little as $5 per 1,000 “fans.”
This is NOT to say that Social Media isn’t a factor. It certainly is. But it’s important to look at the facts before spending your marketing budget by following the crowd. Remember that most businesses are struggling just to keep their doors open.
If you want to thrive and to grow, it would be wise to have a look at the numbers that really matter before you start rearranging your marketing budget.
Last Updated on November 4, 2020