We sometimes get asked by CEOs and corporate brands how and why digital advertising and internet marketing are good for established brands and small businesses alike. It seems obvious to us with all the time spent in digital space around the globe and all the major Consumer Packaged Goods brands that are putting nearly a third of their marketing budgets toward digital. But just to alleviate some of the FAQs, here are a few talking points.
Digital Ads Drive ROI
After completing over 800 studies in the past 7 years and collaborating with upwards of 300 CPG brand companies, research giant Nielsen has concluded that digital advertising achieves an average return of three to five dollars in sales for every dollar spent in digital ad space. This is after linking online ads with offline purchases. Talk about ROI! No billboard in the world can can match that.
Online Makes Offline Media Work Harder
Microsoft and BrandScience conducted a study demonstrating that not only does digital advertising have a significant ROI on its own, it actually improves the effectiveness and reach of traditional advertising media from 4% to a booming 70%! It’s just about doing digital, it’s about adding it to your existing strategy.
Digital Expands Word of Mouth
The most powerful marketing tool at our disposal is still word of mouth and the recommendations of friends. In today’s socially-saturated digital networking space, it’s plainly evident that a digital presence improves and expands on the natural drive to recommend and rate products for friends and family. With the ease of sharing available on social networks, people are 57% more likely to buy something if a friend recommended it naturally on social networks.
It’s no secret to those of us in the know that if a company wants to compete in the 21st century, a well-rounded digital marketing strategy is the price of entry. But it’s always nice with data backs us up on that claim. Thanks, research people!