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Loading ...McKinsey posted a report on the results of a survey they recently took of marketing executives. It’s called How Companies are Marketing Online. The report may not have earth shattering findings, but it does offer some key insights into the future if you read between the lines.Three things stood out in my opinion.
One is that current levels of spending and implementation are quite low as compared to how marketers and other decision makers perceive the overall effectiveness of online marketing. This will mean that future investment in online marketing is bright as the level of investment will catch up with this perception.
The second was the lack of understanding of various facets of online marketing and how these facets should be integrated, implemented, and measured.
Many marketers also felt that, while they themselves and their internal folks weren’t up to speed quite yet when it came to online marketing, the marketing agencies that they used weren’t as well.
And this was a contributing factor in the delay of implementing strategies.The third was that the majority of respondents felt that online marketing was more efficient than traditional marketing. This underscores the expectation of the growth in online spend.
And fortifying this was that marketing online was roughly equally as good for brand building and direct response.Early in the report, it mentions that respondents expect that the majority of their customers will discover new products or services while they are online. A full one third of them will purchase them there.
Also, 10 percent of sales will come from online channels, an increase of 100% of what it is today. These expectations are going to be the impetus behind the increased spending that we’ll see.I can’t help but see this as a continued strategy of seeking to get immediate ROI, a factor that may have limited growth at this point.
And I’ve always viewed that as a mistake. The reason I see it as a mistake is that companies need to invest in knowledge and experience to develop and implement the right strategies as opposed to wait a while and finally invest money in what they may view as only tactics. Indeed, the report mentions that 42% of the respondents felt a greater investment in the overall capabilities would have made their initial investments more effective.
That’s because the online arena is not going to be a place where you toss out a conglomeration of tactics and hope they stick. Together they formulate a strategy and a very important one at that.Significantly, many of the companies that advertise online see it as both a brand building and direct response vehicle.
And that includes search advertising. I see this making sense for several reasons. People, as a whole, whether they are acting as a consumer or a business purchaser, have taken in the internet deeper into their lives. It is no longer relatively new.
It is a necessary part of one’s life. With this, online experiences become richer. So people go online to learn and to get information. Ergo, effective online advertising helps build brands and increases direct sales.Finally, companies that have been making significant online investments are including collaborative tools for customer retention and brand building.
This is important because we in the so-called echo chamber have been saying that companies must ‘engage’ their customers online. Get in conversations. You know, a Marketing Conversation.
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[…] Check it out! While looking through the blogosphere we stumbled on an interesting post today.Here’s a quick excerpt McKinsey posted a report on the results of a survey they recently took of marketing executives. It’s called How Companies are Marketing Online. The report may not have earth shattering … promotion, Branding, Branding Online, conversation, Conversation Marketing, corporate blogging […]
[…] survey conducted by McKinsey & Company regarding companies’ online marketing efforts reveals some interesting insights according to Abraham Harrison’s Marketing Conversation. top of […]
Nice post. Thank you so much.