Are you living your life in the fast lane? Keeping up with all of the technological changes that are continuously taking place? Or are you still living life by your old-fashioned means? Not interested in technology and rekon it’s a bit ridiculous how it’s taking over everything? Well, unfortunately for those who prefer to stick to their traditional ways, technology is a change that benefits us more than we would want it to. Keep reading and find out why!
You know what we mean by digital and traditional marketing right? Incase you don’t, it’s probably best I introduce both these terms to you. Before I explain what these terms mean, it may be relevant if I first begin by giving a definition of marketing. The picture below gives you a brief definition of marketing.
What is Digital Marketing?
Now, lets discuss digital marketing. What is it? Well, to put it simply, it’s marketing with the help of electronic devices such as; computers, smartphones, tablets and sometimes even game consoles, in order to engage with stakeholders. So, any type of device that can be connected to the internet can take part in digital marketing. You know those applications on your smartphones that you play with on a daily basis, well those also fall under digital marketing. The image below gives you an idea of all the different methods and ways – usually referred to as social networks – in which digital marketing is being used.
What is Traditional Marketing?
Traditional marketing is labelled traditional, because it incorporates the original methods of marketing and advertising through 4 basics ways; print, broadcast, direct mail and telephone. Before our digital era arose, these were the ways in which we would receive our necessary information and updates of products and services on offer to stakeholders.
How do WE benefit from digital marketing?
Now we know that digital marketing is done through electronic devices connected through the internet. It’s safe to say that majority of the folk in the world own at least one electronic device, which is connected to the internet. Therefore, on a frequent basis, we receive information about and from our favourite products and brands, giving consumers the oppurtunity to keep themselves updated through social media applications such as; Websites, Facebook, Twitter, Instagram and other applications. In all honesty, it makes our lives a lot easier, as it doesn’t cost much time nor money. Another benefit for consumers is because company’s are constantly active, they are able to have direct contact with the customer service when in need of help or other possible matters.
How do COMPANY’S benefit from digital marketing?
As mentioned in the previous paragraph, the folk of today are consistently online and active, which is what company’s have decided to do as well. Company’s are able to keep in contact with their customers at any time of the day. They use this to their advantage by advertising and promoting their products and services through the social media sites that their customers are using/following. They are able to create and build a relationship with their customers by understanding their needs and wants and clearing up any potential problems. That is why many company’s have switched from traditional marketing to digital marketing. Of course, it’s still possible to use traditional marketing and it’s still available, but company’s invest more time and effort into digital marketing as it matches the lifestyles of majority of the public.
Price tags; Digital VS. Traditional
Believe it or not, but digital and traditional marketing have different price tags. One is definetly more costly than the other. I’m sure you can guess which one, right? Well, digital marketing is definetly a lot cheaper than the old-fashioned, traditional way. Lets discuss the following prices seen on the picture below.
As you can see, both marketing methods are compared by using a bar graph. In both graphs the bars are measured against costs. We can see that the blue graph represents digital marketing and only consists of two bars; online search and online display, both of which it costs between a minimum of $1 to a maximum of $10. Whereas with the pink graph representing the traditional marketing method, consisting of 7 bars; cable TV, prime time TV, newspaper, radio, magazine, catalog and direct mail. These methods cost between a minimum of $10 to a maximum of nearly $500!
Lets now discuss the distribution costs. Digital marketing doesn’t have any mailing or media costs whereas with traditional marketing, it costs at least $0,45 per unit to distribute offline advertising on platforms such as magazine, catalog and direct mail. It will also cost to distribute advertisements through the media; television, print and radio. Bearing this in mind, already 44% of the people never open their direct mail and 86% of the television viewers skip ads. In other words; traditional marketing is expensive and doesn’t seem to be very successful.
Therefore, digital marketing is by far the cheapest method for company’s to use when marketing their products and services, based on platform costs and distribution costs. So it comes as no surprise that traditional marketing has been given the boot. It may still be used by some company’s, but the leading marketing method is by far digital!
What does this mean for traditional lovers?
I understand that there are consumers who aren’t interested in the current technological side of life. They may also not be willing to participate with social networking or it could be that they just generally are too old to understand how it works, and don’t have the time or patience for it either. Thats why traditional marketing is still being used. But, for how much longer? It’s hard to say whether traditional marketing will still be around for much longer, especially as it costs company’s so much to use it.
If we think realistically, it would be beneficial for company’s to spend their time on finding out how to reach their customers better and creating successful advertisements, instead of spending time and money on sending each customer direct mail and catalogs, that are ignored and disregarded.
So what is my advice to traditional lovers? Stop fretting and get involved with the rest of us robots!