Shaune Jordaan, Founder and CEO of Hoorah Digital, says companies that suffer an aversion to using digital marketing tools are in substantial danger and that mobile is on the increase.
Digital transformation changes buying behaviours and the decisions of customers. People are spending more time on their mobile devices, such as smartphones, tablets or laptops, than ever.
The marketing landscape is turning its focus from the brand itself to placing the consumer at the heart of the strategy. Those that have embraced all things digital have vaulted ahead of competitors that are stuck in traditional marketing practices.
What are the things that are preventing companies from diving into digital marketing?
A lack of basic understanding of digital platforms
One of the reasons many C-suite executives are opposed to digital marketing is that they don’t personally use social media, therefore making them sceptical of its effectiveness.
It is important not to get bogged down in the technical side of digital but to focus on data that translates to results they are familiar with, like conversion rate and cost-per-acquisition. By using metrics that are simpler to describe, a client will be better able to follow the overall effectiveness of their digital marketing.
Lack of experience
Digital marketing is in a perpetual state of change, challenging marketers to learn, research and adjust their strategies more frequently than ever before. Many businesses aren’t prepared to seek proper training for their marketing employees, ending in a huge waste of time and money.
The world of digital marketing is becoming more complex, making it almost impossible to do it half-heartedly. Companies should find a digital consultancy to perform a trial advert for their brand, allowing them to test the digital marketing waters without engaging in a binding contract. These small-scale tests are great at foretelling your company’s success or failure on any given digital platform, allowing you to find an objective point of departure for bigger campaigns.
The mistaken belief of a low return on investment
Many companies are hesitant to put a budget behind digital marketing because they believe it is difficult to prove the return on investment (ROI) of anything that is not traditional marketing. Yet, digital advertising’s return on investment (ROI) is far greater than that of traditional media such as television and radio. As reported by an analysis by Nielsen, digital advertising’s ROI takes the lead at R2.30 per rand spent, in comparison to R1.30 for television, and is three times more effective than radio.
Not only does digital have a proven higher ROI when compared with traditional media, but it is also more cost effective. With South African businesses being faced by increasingly tighter budgets, they have to demonstrate that the money they spend on marketing is worthwhile. For the cost of a TV advert, you can make six YouTube videos and target them at specific people, boosting engagement and sequentially sales revenue.
Do digital, or die
South Africa has 31.18 million active internet users and 28.99 million active mobile internet users. We have a 54% internet penetration (7% growth from 2017). South Africans spend an average of 8 hours and 32 minutes on the internet per day via any device. And they access the internet for personal reasons on any device: every day (65%), at least once per week (22%), at least once per month (8%) and less than once per month (4%).
It’s clear. Companies in the contemporary marketplace need digital marketing to compete. Online is where the consumers are. It’s where they prefer that you reach them. Online is where the modern buying process begins.