In this article, we will discuss the advantages of online marketing vs traditional marketing. Let's understand what online marketing is and what traditional marketing is.
We will break down both the pros and cons of each and how you can use them in your business today.
Ultimate Guide to advantages of Online Marketing vs Traditional Marketing
Marketing is as old as the world itself, I am not sure when it was coined as a term but everyone knows what it means. Some have very strong feelings of marketing, thinking it devious or even trickster like. Other's use it to achieve goals that could otherwise not be achieved.
Regardless of how you feel about marketing, we are all salesman. If you own a business, you are a salesman. You work in a company; you are a salesman. You are looking for a job; you are a salesman.
The purpose of any marketing is to influence others of your ideas and opinions. Marketing is nothing more than a way for people to communicate with one another and we all do it.
When you are talking about how you like one car over another, guess what that's marketing. When you go to one grocery over another that's because most likely their marketing has influenced you to believe in something. The store might have better sales, better meat, better choices but you still go.
This may all seems basic but when you break things down, you realize the connections between things. Let's take a view of the differences and advantages of online marketing vs traditional marketing.
Traditional marketing methods
Traditional marketing is not limited to the following advertisements:
- TV ads
- Radio Ads
- Newspaper Ads
- Directory Ads
- Media Mail/Junk Mail
- Cold Calling
- Door to Door
In a nutshell, Seth Godin coined the phrase interruption marketing, and that's what these are. They are forms of advertisement that interrupt the person to get the message across.
You might ask why does it matter if I interrupt my reader/viewer/potential customer. Like anything when marketing when still young these tactics would work well.
Fast forward to 2018 and none of these are giving good returns on investment. People ignore them. It's taking increasingly times for a person to see your brand to try. Why is that? Because of the overstimulation of people to these types of marketing.
They have been used so much that, people's brains are creating a defense against them.
Some of these still work, but you find that the return on investment is often too low for what you are paying. As we consider the advantages of online marketing vs traditional, it's important to keep these things in mind.
At the end of this article, I will provide a worksheet to help you get your own marketing efforts off the ground and track those campaigns.
Let's look at online marketing and discuss what you will find.
Online Marketing methods
Online marketing refers to a number of different things that a business can do to get found. As the world has changed from traditional media to more paperless online media, as to has marketing changed.
If you want to run a successful business you no longer need to take out a yellow page ad. Now businesses are moving to Facebook, Twitter, Instagram, Pinterest, etc.
As a business, if you don't understand this social media landscape, then you are doomed to fail.
Here are some common online marketing tactics:
- Pay-per-click or PPC
- Social Media
- Content Management
- Podcast interviews
So what are all these terms? We I can't go over all them but let's look at what a new business does.
In most cases, people will register that business at a local level and then start advertising or getting the word out. In the traditional business, this used to mean passing out a flier, buying ads in magazines but now we are seeing a shift.
New businesses will often register and then go start a Facebook business account or check their name on social media. They buy websites, they post on blogs and in general socialize with other people in their realm of influence.
It sounds crazy but we are becoming more social and transparent as marketing changes. Back in the day, you used to have what was called Salesmanship in print. Meaning business owners would use sleazy tactics to get customers in the door.
Now all of that is gone. People aren't falling for those tricks. They want real people who can solve their problems.
This doesn't mean that online marketing is complete without all its faults. Facebook just announced they want to limit the amount of time people spend on the site but reducing clutter (aka business ads). This is huge, if you threw in your full marketing behind Facebook, you might wake up one day and find no customers.
Let's take a look at how each of these advantages of online marketing vs traditional marketing work.
A scientific approach to any marketing
In order to be successful in any marketing plan, you must compare a few different things.
- Return on investment or ROI
- Total cost of campaign
- Customer Acquisition Cost
Stop Googling what is a good Facebook click-through rate or what is a good number of likes or what's a good percentage of media mail opened.
And start asking your self about the three up above.
ROI is the total of how good your campaign is doing. Positive ROI often means you are making a profit. Negative ROI means you are losing money.
The total cost of the campaign is just how much money you are dumping into the campaign. How much is your spend, is a sexy way of asking this.
Customer Acquisition cost is often just a fancy way of saying, how many customers did we get and how much did it cost us per customer? This can often be determined by dividing the number of customers by the total cost of the campaign. *In most cases, not all cases
So what does this have to do with you?
The best way to succeed in any business is to test ideas. In other words, think like a scientist.
Your marketing campaigns are your experiments. You will likely run small tests and the ones that seem most promising, will become full-blown experiments but not without a small test first.
The first rule of thinking like a scientist is to Test your theories. Theories are your general assumptions based on either logic or gut feeling, of what will work and what will not.
So let's dive into creating your own marketing plan and I'll even give you a handy dandy guide to keep you moving on the right track.
Create your own original marketing plan on one piece of paper
So now that we have looked at all of this and really got a very board idea of types of marketing. It's time to really focus and start testing those theories.
I've created a very simple marketing guide to keep you on track while you test.
The marketing guide has three sections to keep your business rolling.
Theories: This section has three small boxes. The point is to test out three theories, so you are trying things but not burning your business out. Use Google and other search engines like Youtube or Reddit to develop some very basic theories about what type of marketing you might like to do. Write them down.
After you write down all three theories give each one a rating 1 to 5 on the following:
- Uniqueness - How unique the theory is
- Passion - How passionate about the theory you are
- Time - How much time the theory will take
- Cost - How much you will likely have to spend
Each theory will have points ranging from 4 terrible, do not do to 20 best ideas ever.
Small Tests: This section is where you pick the theory with the highest total wins the first round. It's time to throw on some small test. What does this look like? Well, you simply pick a low number usually under around $50 and being testing.
If you don't know what to do, who cares just start. Make mistakes until you do know what to do.
Test need to have specific guidelines:
Under $50 usually between $25-50 is a decent amount
Record all feedback/Results (make sure if you get ambitious and run two or three tests, you know where the results come from otherwise run one.)
That's it. Get started today. Don't worry about what you don't know and just get started. You're going to make mistakes and guess what, you'll live.
Results: Lastly is results, this is the three things we mentioned above.
How much did you spend, How many customers did you get, what is your ROI. These should all be very easy to figure out using the numbers above as a guide.
If you haven't gotten your free marketing guide, download it here.
Your Marketing Guide: advantages of online marketing vs traditional marketing
Hopefully, this article has helped you understand the basics of marketing. There is no one way to do marketing, you simply get out there and try things. What works for one business, may not work for another business.
The important thing is that you got out and tried. Here is Brandingpop we focus on SEO and Content marketing which is part of our services.
If you still have questions about marketing or you want to reach out. Feel free to contact me directly and I will help you as much as possibly can.