Most of my blog posts have had a positive view of digital marketing. It is very true that digital marketing is a great way to reach a wider audience across many platforms and usually at a lower cost! However, Forbes recently published an article online stating how digital marketing can potentially destroy your business. Their main argument is that digital marketing does not help a business achieve its bottom line – a company’s overall profit. In particular, the article states that three digital marketing techniques focus too much on quantity of quality. They focus too much on reaching as wide an audience as possible, with no focus on getting a high follow through rate – i.e. no focus on attracting customers to make a purchase or browse through their products/services.
The tree techniques they single out as being quite ineffective, as well as most utilised by marketers, are:
1) Mobile & Digital Ad Spend (PPC ads)—click through rates are around 1 per 1000 (0.11%)
2) Paid-for SEO & Related Techniques—eBay conducted a thorough study on this and found the “efficacy of SEM is limited”
3) Paid Social Media—again click through rates are around 1 per 1000 (0.11%)
Do you guys agree with this article? Are these 3 techniques actually pretty ineffective in gaining profits for your company?
I personally still think it’s worth using these digital marketing techniques since building brand awareness can never be a bad thing. Plus I’m sure most companies don’t only use these awareness building techniques exclusively. They most likely use them in conjunction with other retention and profit building techniques such as using various social media platforms to increase the channels of interaction with your brand and having online and in-store sales on products/services, and so on. I think its also important to keep in mind that using brand awareness strategies is also very important for start-ups and unknown brands. Essentially, i believe that the three criticized digital marketing techniques above are still very useful and must be utilised by all businesses, especially new brands and start-ups.