If your current marketing plan relies solely on traditional marketing mediums chances are you’re in for a rude awakening. Yes, it’s a bold statement: but entirely accurate nonetheless. According to UTI the average number of internet users across the globe is over 2 billion which accounts for approximately 40% of the world’s population.
In a study conducted by BIA/Kelsey small to medium size businesses will decrease their traditional advertising budgets to 30% and reallocate the remaining 70% to digital advertising. Businesses around the world are realizing that digital mediums provide a more expansive advertising reach at a lower cost. According to Hubspot.com the average cost per inbound marketing lead is a striking 62% less than that of traditional advertising.
Oh Where Oh Where Did Your Customers Go?
According to the SE Journal 31 million customers are actually shopping online. The journal also went on to state that 98% of people with an income above $30,000 use the internet. This indicates that the internet is no longer just for e-commerce or online businesses, but customers who are actually capable of spending their hard earned money on things they need. The fact is your customers are online and if you’re sticking to traditional advertising methods you are leaving a great deal of good money on the table for your competitors. Now more and more consumers spend their time researching and then buying products online. While you’re busy paying for traditional print ads your consumers are more than likely surfing the web and finding a company who uses inbound marketing strategies.
Deciphering the Large Business Increase in Outbound Marketing
According to Hubspot.com, large businesses have decided to spend more on outbound marketing strategies like trade shows, direct mail, and telemarketing. Don’t be fooled into following suit. The fact is large businesses understand the internet is a level playing field for inbound marketers and businesses who apply these strategies. They can afford to put large sums of money on inefficient techniques because it’s quite frankly the only playground that’s inaccessible to small and medium size businesses. It’s a bittersweet fact that some price ranges like those of the accredited investor are simply out of our reach for the time being at least.
Take, for example, a one page ad in a popular magazine. A full page color ad in Vogue: $165,232. An advertisement occupying just two-thirds of a page will cost $125,580. An advertisement occupying just one-half of a page will cost $111,550. Finally, an advertisement occupying only one-third of a page will cost a whopping $74,359.
In contrast an inbound marketing campaign running an entire year that yields a 75% return on investment will cost $50,000. This is why big businesses flock to pricey outbound campaigns because the playing field is not level. Small businesses cannot realistically afford $125,580 for one run in a magazine no matter how great the magazine– it’s still a gamble because you can’t track leads, it’s not perpetual, or even long term for that matter. You only get one shot and for most small businesses that one shot will cost more than one year of earned revenue.
The Truth About Why Inbound Marketing Works
Inbound marketing works because there is a large demand for information and very low supply of specialized information. What does that mean? Think of the internet as if it were a library. The only problem is this library has a bunch of reference material on of the general stuff like Wikipedia, article directories, social networks, and endemics like Amazon. However, the little machines that keep the world afloat are virtually non-existent. Business blogs like manufacturing plastics, architecture, project development, are still highly demanded. Aside from all the conceptualizations statistically speaking there’s never been a better time than now to start using inbound marketing strategies. Here are few facts you can consider provided by Hubspot:
By 2013 blog readership is expected to rise to over 140 million
By 2014 the number of Facebook users is expected to reach 165 million
Over 50% of consumers are more likely to make a purchase after receiving a marketing email
By 2013 40% of mobile users will be interested in receiving marketing text/SMS
The Bottom Line
The bottom line is, your current marketing plan will fail if you your strategies are to buy expensive and return small. If your business is serious about making a substantial impact on revenue and growth you need to start inbound marketing. If you have any questions or need help getting started, it’s as easy as giving as a call and catering inbound marketing to your specific needs. You’re likely to be more than pleasantly surprised.
If starting an inbound marketing campaign is something that you are interested in but don’t know how to get started, contact us today to schedule your free marketing analysis.