Whenever I give a talk on social media marketing, I always point out, “we don’t actually recommend that you replace traditional marketing with social media. Rather, it should be another tool in your marketing toolbox.”
Why? Why can’t social media marketing replace traditional marketing? In a lot of cases, the traditional marketing has outlived its usefulness, and is just a waste of money. Not every time for every marketer. But many marketers are spending money on something that’s not working anymore.
I can think of five reasons why you should replace traditional marketing with social media or content marketing.
1. You Aren’t Getting a Positive ROI
You ned to spend money to make money. But you need to make more than you spend, in order to make it worthwhile. You can’t just throw money away on a marketing channel and call it “branding.”
Because unless you’re Nike, you don’t have branding-level money, you have “this had better f—ing work” money. So spend the money in a place where you know you’re going to make more money than you spend.
One client stopped spending $60,000 per year on trade show marketing because they weren’t getting anything out of it.
“We’ve measured it, and we don’t make any money on the shows,” they told me. “We just go because we’ve always gone.”
The company switched that entire budget over to content marketing, and in the first six months, they got two new clients that grossed more than their entire annual trade show budget.
2. You’re Overspending
A common trick of the Yellow Pages companies is to break everything out into a monthly price, so all their features and add-ons seem small. “It’s only $5.99 more per month.” “That’s only $3.99 more per month.” “Oh, and that’s a paltry $6.99 per month.” Before you know it, you’re spending a lot more than you intended.
On top of that, your prices will increase even more the following year. Your vendor will often send you a contract renewal with some barely noticeable rate creep, hoping you’ll sign it without too many questions. Soon, any prices you were paying are greatly increased from when you originally signed it.
Combine that with the fact that you weren’t getting a positive ROI in the first place, and it’s either time to renegotiate or drop the channel completely. Your vendor’s salespeople should be able to show you how to measure your ROI (they can’t do it for you, but they can show you how). If they can’t, cancel.
Social media isn’t free, but it is controllable. If you hire an in-house person to do it, you can control the costs. If you outsource to a third-party, they can show you the ROI and prove their value.
3. Your Audience Isn’t Using Traditional Media
Are you relying on newspapers to reach 20-somethings? Are you advertising your home decor products on ESPN? Or you’re still rocking the Yellow Pages ads even though you’re trying to reach smartphone users.
This is where it pays to do target market research. Find out where your target market is likely to see (and not see) your advertising. If they don’t read newspapers, stop advertising in them. If they don’t watch ESPN, quit buying TV spots.
Next, figure out where they do spend a lot of their time, and how they gather news and information. For many people under the age of 30, that’s on social media. Quit spending money on advertising outlets that aren’t yielding anything, and start focusing on content marketing and social media marketing.
4. You Need to Reach a Target Audience
Who’s your target audience? And don’t say “everyone.” Because unless you’re Target, “everyone” isn’t an audience.
Who are the typical buyers of your product? Men over 40? Moms? Single 20-somethings?
How would you typically reach them? TV advertising comes close, but there are so many viewers who aren’t in your target market that you’re wasting money. TV costs are based on total viewers, not targeted viewers. You’re paying for people who will never buy your product to see your commercial.
Radio? Same problem as TV. Plus, there’s more than one station your target audience listens to, so you have to double or triple up.
Direct mail? You can target your audience, but you don’t know who opened your mail, or what they did with it.
With social media marketing, you can target a specific group. Whether it’s advertising to certain demographics on Facebook, or running a content marketing/local SEO campaign for search engines, you can specifically target only those people interested in your product, and ignore everyone else.
5. You Don’t Have a Big Budget
Like I said, social media isn’t free. But it’s relatively cheap, when compared to traditional marketing. TV and radio ads can cost many thousands of dollars. Billboards on highways often cost $10,000 or more per month. And on and on.
Social media marketing is a fraction of that cost. It can easily reach your target audience, and won’t cost as much to do it.
Think of it this way: It can cost less than $100 per day ($3,000 per month) to advertise on a single cable station, but you’re going to spend $30,000 or more (sometimes much more) to create a high-quality spot. A six month ad run is going to cost you $48,000. Then you need another six-month ad. Or a two month seasonal ad. Or more than one commercial.
(And let’s not even talk about how you’re spending a lot to not reach your target audience, or how difficult it is to track ROI.)
Social media pricing varies, but an outside agency can manage social media anywhere from $1,000 – $5,000. It may seem like a lot, but it beats the $96,000 per year you’re spending to create and run two TV commercials on one cable TV station.
Can we completely replace traditional marketing with social media marketing? Not yet. But every day, traditional marketing’s effectiveness is slipping into obscurity. It’s not dead, but it’s certainly coughing a lot.
For some companies, however, they need to stop spending money on traditional marketing and advertising and make the switch to social media marketing instead. It’s where your customers are spending most of their time, it costs a lot less, and it’s easier to reach your target audience.
Photo credit: jasonwg (Flickr, Creative Commons)