Just a decade back, digital marketers were of the opinion that all was smooth sailing. This was when the web had arrived as the medium of advertising and advertising #agencies had become experts at placing online ads and online displays.
However, in the past few years, new #technologies have emerged, which again have disrupted the way in which advertising agencies need to operate. Under the leadership of Facebook and Twitter, with collaboration with online behemoths like Google and some start-ups in Silicon Valley, the advertising business has been transformed and changed the way in which traditional #budgets were allocated by companies for their marketing.
Some of the modern challenges faced by advertising industry are:
• Companies no longer need to be restricted to search and display #advertisements but need to factor in video advertising, social media, daily deals and modern marketing.
• At the same time, the potential of these new platforms is enormous. The new field of social media and digital marketing provide companies greater access to their customers, fresh perspectives into their preferences, a wider creative palette to use and more metrics and data to study.
• But there are unsolved questions remaining on how to do digital and social media marketing. No single formula has been developed leaving companies to experiment with different strategies. There is also confusion on how to judge the services of an ad campaign and estimate Return on Investment (ROI).
• The biggest shift in recent time has been that from one sided broadcast and print media to the two way conversation, which social media allows between consumers and companies.
• Quantifying the impact and Return on investment of ad campaigns remain a thorny problem. Instead of tracking click through and conversion rates as in the case of search and display advertising, today marketers are endeavouring to measure sentiment, analyse intent to purchase and count followers.
• More creative opportunities imply more work for marketing teams and rise in marketing costs of companies. In ad agencies as well as in-house teams, marketer are rushing to acquire the new and latest skills and to add more staff to monitor the online dialogue about the companies.
• A variety of options is forcing ad agencies and companies to change the way they work. Two decades back, ad agencies worked with templates. But today there is no typical engagement with clients. Instead with different media, there are specific solutions. For example, one brand may require an active Facebook engagement while another may stay in touch with #customers on blogs, messenger boards and other online platforms. Another example is that previously PR (Public Relations) wing of the company worked separately from the #advertising and #marketing department, but now they work as a single identity. This result is a completely integrated marketing campaign with a unique and common message projected though the radio, print, web and television.
• The popularity of the web is also resulting in truly global ad campaigns. Currently television campaigns account for bulk of ad spends. But the situation is changing with the new media. The current leading trend is of access to the web through mobile phones.
Just as the web transformed the world of advertising a decade ago, social media and digital marketing are forcing ad agencies to fashion new types of strategies.