- Trends seem to indicate a shift away from traditional marketing (print, tv, radio etc) to online as its much easier to target and track
- Businesses that continue ignore digital marketing will eventually be swallowed up by companies that innovate and promote themselves online
John: I want to ask real quick because you’ve been doing this for some time now, 14 years, what sort of trends you’ve been seeing in the online marketing space recently? Are you seeing a real shift towards away from SEO say to Facebook or do you still think that SEO is healthy or what have you seen?
Tyneal: Well, I don’t know. Digital is obviously dominating as a whole in terms of clients’ media budgets and their efforts, so we’re seeing a shift away, not away. Away from traditional media channels into more digital channels and because there’s obviously more digital platforms and digital channels that are eating more of the marketing budget as opposed to traditional channels.
John: What do you mean by traditional? Are you talking TV, radio, print media?
Tyneal: TV, radio, press, outdoor. So those are slight shifts. Eight years ago we were spending roughly 30% of our marketing budget on digital channels. Now it’s more 50% to 60% depending on what category you’re in.
John: Why do you think that is, Tyneal?
Tyneal: I think the marketplace is getting more competitive and the ability to be able to measure your activity is very desirable to marketers. Obviously you have a better ability to target people in a digital environment, particularly with Facebook you can drill down and target your own audience by using first party data. You can target by location you can target people that have just got engaged or moved in and out of a certain area and serve them with a really bespoke ad. So I think from a marketing perspective that opens up a whole new range of opportunities. The Holy Grail with marketing is to be relevant and have targeted messages reaching your audience.
John: Yeah, the right people with the right message and also being able to track and measure and know that you’re putting a dollar in and getting two or three dollars out.
Tyneal: You know your numbers and that’s very desirable obviously as a marketer and then you can keep refining your marketing needs to get your possible lead down or to get your conversion rate higher and that sort of thing. So that said though, digital TV is becoming a thing and becoming a bit more mainstream and even outdoor advertising is now using platforms and things like that. So those traditional channels are slowly adopting a more digital approach, which is good. It’s complex though. I feel like we’re in a bit of a new era of marketing to be honest. Even over the last couple of years the game has changed a lot. I see, I don’t know, maybe particularly in the property space, there’s a lot of industries that are late adopters to marketing and particularly to digital marketing and they’re not following the customer journey all the way through.
Tyneal: I think businesses or brands that do quite well really understand the customer journey and they really understand marketing and reaching people right at the beginning when they’re trying to establish awareness and grow interest and engage their audience and then taking them on the journey with their brands and nurturing them through the process. So not just expecting a signup or something and thats it, or an inquiry. It’s actually what’s next. What’s that journey look like once you have that lead? To acquire them as a customer, how do you then nurture them through to maybe cross-sell into other products or get them to buy a second product, that repeat purchase kind of situation. So I find that the most sophisticated marketers are now looking at trying to understand the customer lifetime value.
Tyneal: So the whole period of the lifetime of that customer, what’s that worth to the business and therefore that influences how much you initially spend on them. Because if they’re purchasing two to three products from you, you can afford to spend more on them than in the onset.
John: Right, and do you think that business owners are becoming smarter and getting a better understanding of digital marketing? One thing that definitely comes to mind, which I think a lot of business owners don’t, at least the ones that I’ve spoken to, don’t understand that sometimes you need multiple touch points …
John: … before someone actually makes a transaction. I keep a spreadsheet here for this course and I know that I’ve seen people come back almost 60 days later after opting in to going through my free trial, coming back 60 days later and making purchase.
Tyneal: Yeah. Yeah, 100%. The cost of purchase isn’t linear. It’s like this and it’s varied for so many platforms and channels and things like that. So I think the emphasis then just comes back to more content and how can you keep people engaged and how can you keep adding value throughout that time period, because the journey is longer in some cases and it’s more fragmented. So it means you’ve got to be more competitive with what you’re doing because people are shopping around and they’re getting distracted.
John: Yeah. Yeah. I think business owners that aren’t innovating and we’re seeing this everywhere at the moment, especially in the retail space, places are closing down all over the place and you’ll see it. This shits me because you see it in the news. “Oh, the internet and Amazon, it’s putting us out of business.” Well, fuck me. Go and walk into Myer. It’s no different in Myers today than when it was in 1980 or 1990. It hasn’t changed. Something has to change.
Tyneal: Yeah. That’s it. You just have to adapt and you see the businesses that don’t and they get overtaken by new entrance to market, that have really savvy, they’re very customer-facing. They’ve got highly engaging content. That personalised service offering and it’s just the world we live in these days. You’re not just competing against people in your category. You’re competing with people outside of your category because people’s standards are constantly being raised.
John: Yeah, they are. Yeah. The level of expectation now and what people expect, I just want to press this button and this fucking thing appears. I want to watch a movie, press a button. I want to buy this thing. A drone flies over and drops it in your lap. So businesses need to be innovating big time. Again, using Myer as an example. I don’t know if you ever go to Myer.
Tyneal: Every now and then.
John: I try to avoid the places. I walk in, I think fuck, it hasn’t changed. All the little walkways are the same. Martha with the purple rinse and the tape measure around her neck, she’s still there.
Tyneal: I know.
Tyneal: I feel for retailers these days to be honest. Yeah.
John: Yeah. I do too.
Tyneal: Yeah. The voice to search, the whole voice to search, I think that’s really interesting and I think that’s new and we’re going to see a lot of cool, from a marketing perspective come out of that. That’s going to open up the whole new world.
John: Yeah. I think within the next 10 years we’re going to see some huge innovation that’s going to, and it’ll continue on from there, just going to a restaurant or a cafe, the whole experience is going to change.
John: I’m looking forward to it. I’m actually quite excited by it, but I really do feel like you said, I feel for business owners just because it would be incredibly overwhelming if someone that’s been in business for 40 years and suddenly putting an ad in the Yellow Pages doesn’t work anymore.
Tyneal: Oh, I know. I know. I know. It’s tough. We actually had Spotify come into the agency this morning and they talked about their platform and the different mediums that you can buy into for ad serving and just about their technology. And something quite cool that I didn’t realise with them is they are able to determine the difference between when you’re just listening or when you’re actually on your phone or on your screen engaging. Maybe you’re skipping a song or flicking through. If you’re just listening through with music, they’ll send you an audio ads, but if they-
John: That’s a bit worrying. You wouldn’t want to be looking at anything inappropriate.
Tyneal: No, but if you’re on the Spotify platform tinkering with your playlist, they’ll serve you at a display ad. The level of detail that we’re getting down to.
John: Yeah, the data sets, the data that, and this has been an ongoing thing all around privacy. Having that data, and this is how the Facebook algorithm works. It’s a machine that learns just … I often think back to the guys back in the day that would put an ad in a magazine or a newspaper thing. How the fuck did they track and measure this stuff? I had a chat with a guy who was in his sixties, late sixties, and he said to me, “We placed an ad in several newspapers and in each newspaper we would put a different name. So in this newspaper we’d say, ‘Call Barry,’ and in this other newspaper, ‘Call John.'” So when someone calls, “Can I speak to John,” okay, we know that this call came in …
Tyneal: Yes. That’s amazing.
John: I love this topic and I could just talk-
Tyneal: So do I. We should just schedule these regularly.
John: I could talk about this stuff for forever.