Affiliate, content, social, mobile – when it comes to online marketing, new trends just keep on coming! You’d need to read up on the different strategies prac­tic­ally every day to stay up to date. But there are still many classic marketing measures that haven’t yet ventured into the world of online business. This is because many business owners are still sceptical and have many un­answered questions: 'What are the pos­sib­il­it­ies of online marketing?', 'What are the pros and cons compared to tra­di­tion­al marketing?' and 'Is it even worth investing in online marketing?'

Online marketing – in­creas­ingly important in the digital age

From Google and Amazon to Facebook and Twitter, prac­tic­ally everyone uses social media, makes online purchases, and uses the web to research products, services and all kinds of offers. In the US, over 285 million people (88.5% of the pop­u­la­tion) use the internet. E-mail use is rife too with only 9% of the pop­u­la­tion having never sent an e-mail. Statista goes into even more detail about internet use in the US. With all these facts and figures it no wonder more and more busi­nesses are relying on online marketing campaigns.

Marketing in­stru­ments: flyers vs. Facebook ads

There are many different options in marketing that you can use to reach out to customers and promote your products, both online or offline. Here’s a selection of different marketing tools for both sectors:

Tra­di­tion­al marketing

Online marketing

TV com­mer­cials Radio com­mer­cials Print ads & ad­vertori­als Outdoor ad­vert­ising (e.g. posters) Pro­mo­tion­al items Events Pairs and ex­hib­i­tions Spon­sor­ing (e.g. events) Online banners Content marketing Social media Affiliate marketing E-mail marketing Search engine op­tim­isa­tion (SEO) Search engine ad­vert­ising (SEA) Mul­ti­me­dia: videos, podcasts, etc.

Classic marketing: strengths and weak­nesses

Media, radio, TV, and news­pa­pers all belong to classic marketing channels, and have been reaching large audiences for decades. Together with other offline and direct marketing strategies (e.g. outdoor ad­vert­ising), these classic methods have a strong presence and often a wide reach since they also speak to those who aren’t that internet savvy.

A dis­ad­vant­age of outdoor ad­vert­ising and print ads, however, is that they have a fixed position. This means you’re paying for an ad that will be seen by many people, but you don’t know how many of them are actually in your target group. This results in a high scat­ter­ing loss. Online ads used to be ex­clus­ively bought and shown on specific sites, but now it’s possible to show online ads to a par­tic­u­lar group of people. Read more about this in our article on real-time ad­vert­ising.

Strong brand identity

Tra­di­tion­al marketing, such as on the radio or in the form of large-scale posters or ads in magazines, builds a strong brand identity even if it is subtle. TV ad­vert­ising can prove costly which is why many start-ups con­cen­trate more on the fa­vour­able online marketing sector. But don’t shy away from tra­di­tion­al ad­vert­ising just because of the high costs! Whether you choose outside ad­vert­ising, flyers, posters, trade fairs, or spon­sor­ship, a com­bin­a­tion of different strategies builds the found­a­tion for brand awareness. Tra­di­tion­al marketing con­trib­utes to brand identity and has a strong presence in the everyday life of potential customers.

Flexible actions and per­son­al­isa­tion rarely possible

Classic marketing measures generally don’t leave much room for spon­tan­eous changes. Once an ad or a poster has been printed, or a com­mer­cial has been filmed, no further modi­fic­a­tions can be carried out. If one of the ads receives negative feedback, it can’t be changed. It’s also difficult to address people in­di­vidu­ally since the same newspaper ad (for example) is seen by all readers, whether they’re part of your target group or not. In the online sector, it’s possible to show different ads depending on the visitor’s profile, their online behaviour, and any personal in­form­a­tion that’s known about them.

Online marketing: real-time and per­son­al­iz­a­tion are key

An obvious advantage that online marketing has over tra­di­tion­al marketing is audience targeting and re­tar­get­ing, marketing measures that match ad­vert­ise­ments exactly to each in­di­vidu­al recipient. You can determine which user groups should see which ads when it comes to search engine ad­vert­ising e.g. with AdWords campaigns or banner ad­vert­ising in display marketing.

Per­son­al­isa­tion 3.0

Through various targeting tech­niques, you can obtain precise in­form­a­tion about the buying habits of in­di­vidu­al users. The newly acquired data can then be used for ad­vert­ising in online marketing. This also ensures that a man in his mid-30s who’s in­ter­ested in football and UFC, doesn’t receive any ads for cosmetic products and spas. Every user leaves a digital footprint that the online marketer can then use to their advantage. Therefore, the results are based on millions of pieces of customer data that have been collected and combined. This is possible thanks to data man­age­ment platforms. DMPs collect data from customers by analysing cookies, among other things. They can be seen as giant ware­houses that store customer data, analyse it, and make it available when needed. DMPs issue this data to marketers to help them when placing their ads online so that they can reach the exact users that belong to their defined target groups.

Unique per­form­ance measures

Using online marketing tech­niques, you can observe how effective your ad­vert­ising measures are (if at all). Ana­lyt­ic­al tools and tracking tools can be used to see who views which ads and how often they’re clicked on it. When it comes to offline measures, there aren’t that many ways to track success. If you rely on outdoor ad­vert­ising, you can only estimate how many people have seen your advert. You can then only gather a rough estimate of how many people have gone on to buy the product shown in the ad, by carrying out customer surveys, but this process is un­re­li­able and time consuming. However, when products are purchased online, it’s possible to measure per­form­ance and success rates precisely. It’s possible to monitor an ad’s CTR (click-through rate) as well as the con­ver­sion rate, which reveals how many users have purchased the product after seeing the ad.

Real-time response

By carrying out detailed per­form­ance meas­ure­ments, marketers in the online sector can determine quite early on how well an ad­vert­ise­ment is faring. If an ad or blog post is neg­at­ively perceived, its creators can react quickly. Online, it’s possible to change ads within minutes, respond to social media posts quickly, and change texts at the drop of a hat. The same can’t be said for print media, where mistakes are im­possible to fix once the advert has been published. Online marketing also offers the advantage of being able to com­mu­nic­ate in real-time over social media, via creating a dialogue with customers as well as re­spond­ing to current events.

Com­par­is­on: online vs. offline

In many ways, online marketing comes out on top when up against offline marketing. With modern tech­no­logy, you can find out a lot about potential customers and therefore customise your ads to suit their needs. Here is a com­par­is­on of the facts once more:

Tra­di­tion­al marketing

Online marketing

Wide reach and stronger branding effect since target groups don’t need an internet con­nec­tion High scat­ter­ing loss depending on medium used Ad placement is static and un­change­able High in­vest­ment Accurate meas­ure­ment of success is difficult Limited per­son­al­isa­tion options Limited/no direct com­mu­nic­a­tion with customer Only internet users can be reached Low scat­ter­ing loss due to ability to per­son­al­ising ads Flexible areas of ap­plic­a­tion Budget-friendly Exact tracking of all activ­it­ies possible Per­son­al­ised customer approach In­ter­act­ive channels

Con­clu­sion: in­di­vidu­al marketing mix

Every company needs the right marketing concept as its found­a­tion in order to reach customers and build re­la­tion­ships with them. This concept usually combines online and offline marketing measures. The measures you use should be de­term­ined by the group of users you wish to reach with your offer, rather than your personal pref­er­ence. A target group con­sist­ing of teenagers is unlikely to be reached with an ad­vert­ise­ment in a national newspaper, but on popular social media platforms such as Snapchat or Instagram, you’re more likely to be suc­cess­ful. On the other hand, if you want to appeal to those with less internet expertise, you should invest in offline marketing and use it on tra­di­tion­al means of ad­vert­ising. A detailed target group analysis is therefore the basis on which all further goals and strategies should be built.

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