Welcome to the Dove Direct Print and Marketing Blog. Today's post, "Triple ROI with Print and Digital," brings to fore supporting data that eradicates the concept that brands that rely solely on digital marketing reap the highest ROI. That is not the case. Digital-only strategies will be under more scrutiny in 2020.
Our Quote of the Day: "Do not go where the path may lead, go instead where there is no path and leave a trail." – Ralph Waldo Emerson
Renowned Effectiveness Expert Peter Field discovered that while print and digital platforms perform very well in delivering business goals, it's the combination of the two platforms that provide advertisers with a stronger multiplier effect versus using only one of the formats. It is similar to the one-two strategy cast by Muhammed Ali during his stellar boxing career. One punch was good, but the one-two punch made him a lethal weapon in the ring. Such is the case when brands combine print and digital.
The Two-Punch Strategy
Research findings show that marketers who apply the two-punch strategy of print and digital realize a return on investment that averages 3.5 fold.
This may be foreign for brands and marketers to grasp due to a satiated love-fest with digital; however, recent findings have the digital-only strategy under evaluation. Media biases outlining this misnomer were brought to light in a 2018 report from Radiocentre and Ebiquity, entitled "Re-evaluating Media."
According to Mark Ritson, a media commentator with a Ph.D. in Marketing the findings, "laid bare marketers' perceptions about which channels perform best, and the extent to which they're divorced from reality."
What Marketers Value Most
The report, "Re-evaluating Media," revealed what marketers deem to be the most valuable factors that they base their strategies upon, which are ROI, emotional response, and brand salience. However, and most importantly, this report debunks the notion the digital love-fest followers maintain that traditional media should be put on the back burner. Spoiler Alert! That idea is absolutely far from reality.
Ritson's observation was twofold, and he states further, "First, a significant number of marketers are not driven by data anymore. They look at their own highly unrepresentative media consumption and use that as a proxy for their media planning."
Ritson continues with a second observation; "There is a significant bias within media agencies towards digital media and against so-called traditional alternatives. If you look at the amount of money that can be made in fees and rebates from digital media it is often a factor of three or four times more profitable to recommend digital video over TV or radio. In the world of big data, that's a huge mistake. What may appear to resemble an opportunity, based on an internal perception, could be very misleading".
Further, appearances can be quite deceiving — case in point. In the movie Pretty Woman, Julia Roberts attempts to purchase upscale clothing on Rodeo Drive in Beverly Hills. As her character is under-dressed, the sales staff dismisses her due to her unbecoming appearance, not realizing that the character has access to thousands to spend on clothing and accessories.
Although she was turned away by the store, Ms. Roberts returns after making huge purchases. She utters the term, "Remember me, I was here yesterday trying to buy, and you wouldn't help me,' huge mistake.' She raises both hands clutching multiple bags filled with upscale merchandise, pointing out that they missed a significant sales opportunity.
Julia Roberts's character in Pretty Woman represents traditional media, and the preconceived notion blinded the store staff who lost the sale and commissions because of their assumption that only well-dressed shoppers are choice targets.
Reality Versus Perception
The report also brought to light the perception/reality gap measured against 12 criteria, and the results were confounding.
Below are the ratings from the advertising agencies and the actual results.
1 - TV
2 - Online video
3 - Social Media
4 - Out of Home
5 - Cinema
6 - Radio
7 - Newspapers
7 - Direct Mail
9 - Online Display
10 - Magazines
Now, review what the evidence stated:
1 - TV
2 - Radio
3 - Newspapers
4 - Magazines
5 - Out of Home
6 - Direct Mail
7 - Social Media
7 - Cinema
9 - Online Video
10 - Online Display
When you look at the media spend allocations, traditional media receives far less than its digital counterparts, yet, reality says it should be the other way around, as digital ranked 7th, 9th, and 10th. Now is the time for marketers to review their strategy and spend.
The imbalance of marketing strategies revolve around the focus on short term gains, which went a long way in negating the effectiveness of the marketing world, and most importantly muddies the waters regarding which marketing mediums are most effective, albeit digital or traditional.
Both the IPA and ISBA surveys support that supposition, as 75% of marketers and 73% of agencies are in lockstep. They agree that short-term strategies take precedence over long-term objectives. Further, only 14% of marketers and 4% of agency execs strongly agree that marketing objectives focus on a long-term strategy of one-to-three years.
Marketing Effectiveness Revisited
Instagram, the latest digital darling, is considering removing "likes" from its platform. You may wonder why the platform would remove the rating system. However, we believe it is because likes do not turn into revenue. Or, for that matter, a qualified lead. Likes, clicks, shares, and impressions are great for racking up popularity scores but not necessarily revenue. In the end, those interactions may reduce the effectiveness of the marketing results.
A short-term gain focus versus a long-term strategy can produce an unfavorable result regarding marketing effectiveness. According to effectiveness gurus Les Binet and Peter Field, "On average, marketers should invest 60% of their budgets in long-term brand building; and 40% on short-term sales activation to achieve the best return on marketing investment (ROMI)."
Real Integrated Marketing
Research and results demonstrate that adding print to the media mix results in a higher ROI. Further, the trust element increases by another factor when the strategy includes a traditional medium as part of the marketing mix.
Yes, digital will continue to be the current medium darling that brands and marketers utilize. However, if your brand strategy is to increase ROI three-fold, then adding a traditional medium is necessary. In summation, adding print to the mix makes sense. We hope you enjoined the article, and thanks for reading "Triple ROI With Print and Digital"!
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Welcome to the Dove Direct Print and Marketing Blog. Today's post, "New Marketing Strategies for 2020," examines what marketers, digital innovators, and brands are now contemplating if they want to re...