Why Firms Don't Buy Online Advertising

Discussion in 'General Marketing' started by wasabiventures, Feb 13, 2008.

  1. #1
    I was doing my morning reading and I came across an interesting study of why people aren't buying online advertising (you can read my analysis on my blog).

    Some of the highlights:

    * 52% insufficient metrics to measure impact
    * 41% Insufficient in-house capabilities
    * 33% Difficulty of convincing upper management
    * 24% Limited reach of digital tools
    * 18% insufficient capabilities at agency

    Some of these are just shocking to me... do they shock anyone else?
     
    wasabiventures, Feb 13, 2008 IP
  2. ardley216

    ardley216 Peon

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    #2
    depends if you own a already established company which does not vitally need advertising... so yes in some respects.. no in others... i bet many of us will buy advertising one time or another
     
    ardley216, Feb 13, 2008 IP
  3. wasabiventures

    wasabiventures Well-Known Member

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    #3
    I think the interesting thing is that the study is from people that spend large dollars on advertising and why they are not spending any of that online.
     
    wasabiventures, Feb 13, 2008 IP
  4. pipsbank

    pipsbank Banned

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    #4
    but i think they still can compare from the television commercials with internet ads.
    TVC also you can't define the metrics to gauge on how is the effectiveness of the ads rite?
     
    pipsbank, Feb 13, 2008 IP
  5. Zibblu

    Zibblu Guest

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    #5

    I find that one very interesting. As it's my main reason for not doing much in the way of offline advertising. With offline advertising it's very hard for me to track if it's actually working or not. That's the great thing about online advertising, you can track every click.

    Now I guess I can see, if you are a company like Coke, you may see how it would be hard to track the value of online advertising. Interesting.
     
    Zibblu, Feb 13, 2008 IP
  6. North Carolina SEO

    North Carolina SEO Well-Known Member

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    #6
    There have long been "established metrics" in offline advertising based on Nielsen, Arbitron, etc. measurements. Large companies have used these along with in-house results (e.g. tracking mailers, coupons, etc.) to determine the "value" of marketing campaigns. It takes a major refocus to do the same online and cross-promotion between online and offline.

    Saying this, I strongly believe that online marketing will continue growing in popularity and value. I trust this so much I have focused my primary business to that affect. Before, I had direct interaction with companies using the above referenced sources for metrics.
     
    North Carolina SEO, Feb 13, 2008 IP