ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

The Death of Digital Advertising

R.I.P DIGITAL

ADVERTISING

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is Digital Advertising?

Let us be clear, digital advertising will probably never die. It’s effectiveness will start to decrease, but will always be around as long as digital devices exist.

For some advertisers, there is still rooom to grow. For others, the digital market may be saturated and a broader mix of marketing channels is needed.

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is Digital Advertising?

Some useful definitions:1. Digital Advertising: Any paid

display or search term advertising using the digital or mobile medium

2. Digital: Using a PC or Laptop to access the Internet

3. Mobile: Using a tablet or Smartphone to access the Internet

4. Shopping: The information gathering, brand building and price comparison phase taking place in-store or on the Internet

5. Purchase: The moment of truth for the brand when money changes hands, either in digital or mobile, or in a physical store

Let us be clear, digital advertising will probably never die. It’s effectiveness will start to decrease, but will always be around as long as digital devices exist.

For some advertisers, there is still rooom to grow. For others, the digital market may be saturated and a broader mix of marketing is needed.

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is driving the industry?

Ad pricing increases, effectiveness per dollar invested decreases

As more advertisers invest more in digital advertising:

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is driving the industry?As more advertisers invest more in digital advertising:

More clutter = Consumers ignore more ads

Sign up for our most recent webinar:

Ad pricing increases, effectiveness per dollar invested decreases

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

Continued…As more advertisers invest more in digital advertising:

Technology advances, however, with less and less incremental value for each new capability. Diminishing returns on the value of technology kicks in

Ad Networks

Re-targeting

Cookies

Pay per click

Attribution models

Diminishing Returns on digital advertising technology

Many different digital advertising technologies

Rela

tive

valu

e to

adv

ertis

er

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is driving the industry?

Growth in consumers using the Internet, growing in developing countries, slowing in advanced countries

Consumer behavior is changing:

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is driving the industry?

Growth in consumers using the Internet, growing in developing countries, slowing in advanced countries

Consumer behavior is changing:

Consumers are more informed shoppers through Internet information gathering

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is driving the industry?Consumer behavior is changing:

Advertisers are improving their presences in the lower part of the purchase funnel

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What is driving the industry?Consumer behavior is changing:

Third party product comparison and reviews sites equalize the consumer’s power with the retailer

Sign up for our most recent webinar:

Advertisers are improving their presences in the lower part of the purchase funnel

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

Is it still worth the investment?Should marketers invest more money in digital advertising?

Sign up for our most recent webinar:

Search:

1. If investment in SEM is not saturated, the brand can continue to invest and achieve linear growth. However, due to more and more clutter, there will be dimishing returns

2. If investment is already high, and saturated, the purchase of second tier words will lead to higher levels of dimishing returns on top of other effects

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

Is it still worth the investment?

Search:

1. If investment in SEM is not saturated, the brand can continue to invest and achieve linear growth. However, due to more and more clutter, there will be dimishing returns

2. If investment is already high, and saturated, the purchase of second tier words will lead to higher levels of dimishing returns on top of other effects

Should marketers invest more money in digital advertising?

Display:

1. Depending on the current spend/saturation level the diminishing returns will be low or high

?

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsP ProRelevant Marketing Solutions

What will happen now that the big brands are losing organic reach on Facebook?

Facebook paid reach:

1. Facebook continues to change their edge rank algorithm to their benefit, to the advertiser’s detriment. Good news for FB shareholders. Bad news for major advertisers.

Facebook ratcheted down the level of organic reach a brand can receive through admin posts. Brands must either pay for reach or they will go somewhere else to achieve the same level of impressions. This trend will continue thereby driving even more money and clutter into paid digital advertising. And it will continue to reduce the overall effectiveness of digital advertising.

Sign up for our most recent webinar:

ProRelevant Marketing SolutionsPWe have an upcoming webinar series on this topic. If you’d like to learn more about how we can help you deliver successful product launches simply hit

Get in Touch below:

Or sign-up for our blog: @ http://www.prorelevant.com/the-marketing-calculator-blog/

ProRelevant.com

Guy R. Powell

Thank you

Sign up for our most recent webinar: