Online marketing

Is online marketing the key to growing your business?

David Price
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How many of you click on an advertisement when online?  If you are like me, you would probably avoid clicking the ad so that you can continue on with your previous thought process without wanting an interruption.

So for some of us, the likelihood of clicking a banner ad is pretty slim.

According to Business Insider, a firm called Solve Media has compiled some interesting  data on how often people actually do click on those carefully crafted banner ads. According to their research you’re more likely to survive a plane crash than click online display advertising? As it turns out, you’re more likely to do a lot things than click a banner ad. Here’s a quick sample of things you’re more likely to do instead:

      To get a full house in poker (2.13 times more likely)

      To win a prize in Mega Millions (31.25 times more likely)

      To climb Mt. Everest and reach the summit (279.64 times more likely)

Although these likelihoods emphasize that consumers just don’t click enough, the true significance is the ineffectual use of click through rates as a measurement of success.

While many SME’s rely on their website as their primary online marketing technique, 21% of SME’s in USA are also utilizing some form of search advertising, according to a recent American Express OPEN 
Small Business Search Marketing Survey.

Interestingly only 12% of SME’s consider online advertising & marketing to be very effective, 
according to a SMB survey conducted by Affinity Express, Inc.

Given the large amounts of money invested in search engine marketing, it’s critical that SME’s understand and accurately measure their ROI for their online marketing spending. Many businesses are banking on search marketing to be effective and to improve their sales. But how do we know the real effect? Since people aren’t necessarily clicking, the real impact of online ads becomes the struggle to gain top-of-mind awareness. So if banner ads are rarely clicked, why are we continuing to measure success based on click through rates?

If you’re a small business owner and you’ve got a large chunk of your marketing dollars tied up in online marketing, you might want to think again. Consider the idea that both the tried and trusted marketing methods as well as new online strategies should each have their place in helping you to grow your business.

I am a Cambridge University Honours graduate with postgraduate business qualifications. I am also a qualified Secondary School Teacher having taught at schools including Melbourne Grammar School and Scotch College in Perth. Married with 4 kids, I am a cricket tragic. I love business, marketing, advertising, music, playing guitar and singing. My music can be found here http://soundcloud.com/plopconsortium/sets/tunes My linkedin profile can be found here: http://www.linkedin.com/in/davidprice2

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Comments (3)
Great article David! Are the numbers also true in Australia? The percentages would likely be lower. Do you agree?
Glen Rothquel Owner at Leads 2 Profits
Yes I think the numbers are lower, Glen. The key has to be weighing up the long term investment in online as opposed to WOM, networking, event sponsorship, email marketing, Social Media, content marketing etc and getting the right balance, not just "going with the flow"...
David Price Owner at Price Advertising
Thanks David. That is so true! With the advent of online marketing, everyone seem to be doing it without understanding the process, thus, missing out on its benefits.
Glen Rothquel Owner at Leads 2 Profits

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