The internet may be transforming the way consumers shop but it appears to have done nothing for the way our industry spends its marketing budgets. Business as usual won’t cut it.
Apparently, chief marketing officers at European finance companies are guilty of failing to shift their budgets online, even when it would do them good. Google’s recent research lays part of the blame at the door of the ‘traditional’ media agencies. The answer, according to Google, is simple: spend more online and break free of those damned stuffy agencies. They want you to throw more money at it. How very traditional…
Here are some less ‘traditional’ questions. Regardless of their size, how are the budgets allocated? Does the money go to the right people? What’s the point of spending tons of money to drive people to financial services websites if they can’t understand what they read when they get there?
Again and again, I see clients dedicate a tiny fraction, if any, of their budget on the most fundamental jobs such as writing web copy. Rather than hire an expert who understands how to write for the medium AND gets the technology, they leave it to design agencies, marketers and the last minute. They’re still paying for copy one way or another but they’re not getting what they pay for.
I agree that spending online lags behind changes in consumer behaviour but I also believe that what is spent could be spent more wisely. A few agencies are waking up to the need for a specialist approach. For example, Jackie Cooper PR has just employed a full-time blogger. Of course, the PR industry never looks a gift revenue stream in the mouth. But kudos to JCPR for forward thinking.
I’m willing to bet that behind Google’s disparaging use of the term ‘traditional’ agency is the idea that they just ‘don’t do’ online. Shame on them. But for those who ‘do do’ online, how about a little recognition that it is constantly evolving. It is simply inexcusable to fob clients off with a one-stop-shop new media package. It might have worked a couple of years ago but there are more options now: blogs, wikis, podcasts, chat forums, fan sites, etc. etc.
How many more Flash-driven quasi-interactive brochure-ware sites do we have to endure before someone embraces the full potential of online technology? And the full range of specialist agencies? Campaigns and customers expect better and there are rich rewards for agencies that deliver.
For instance, research shows (well if you can’t beat ‘em, join ‘em) that good website copy can improve understanding, credibility and sell through. This is doubly true when it comes to complex products like financial services or technology. Do you really want to trust such a crucial job to anyone who can string a sentence together? Or someone who doesn’t know the difference between a blog and a wiki, even if their job depended on it?
Google’s research cites lack of knowledge as the main reason for not shifting budgets to where they’d have most impact. If the poor, confused CMOs don’t get it, I think it is because their agencies don’t get it. Success is a powerful argument and getting more bang for the same buck is another. Who knows, maybe when they see some campaigns using the full range of technology and deploying specialists to do it they may see a good reason to shift more money online, however hard those ‘traditional’ agencies push them in the other direction.
[This post was originally submitted to NMA magazine as an opinion piece in response to some research put out by Google about online advertising spending.]