Despite hype over Internet, traditional forms of advertising still have edge: Poll
DESPITE the buzz and hype surrounding advertising on social networking and other Internet sites, newspapers still trounced other media as the most effective marketing platform last year.
This is because newspapers and other traditional forms of media still have a far wider reach, said the Fournaise Marketing Group in a recent survey.
The Singapore-based firm is one of the world’s top trackers of marketing effectiveness.
Its Marketing Effectiveness Report for last year, issued earlier this month, contained the results of a poll of more than 3,000 business-to-business and business-to-consumer marketing professionals working for small and medium-sized enterprises as well as larger firms, in Britain, Australia, China, India and Singapore.
Among the key findings was the fact that newspapers still easily beat other media in terms of marketing effectiveness despite the rise of online advertising.
Globally, newspapers ranked third behind direct marketing and public relations in terms of effectiveness in reaching out to target markets, ahead of online e-mail messages, referrals and display ads.
In booming economies such as Singapore, India and China, newspapers topped the list ahead of television and outdoor advertising.
Fournaise chief executive officer Jerome Fontaine said this was not surprising.
‘In markets which are growing fast, companies are still keen to build awareness and interest in their brands.
‘A big draw for established media such as newspapers is the fact that they still have a relatively wide and established reach.
‘Another attraction is that there are avenues for them to be audited externally, unlike many online forms of marketing. This allows marketeers to know precisely what they are getting for their money.’
The report also showed that for every $100 spent on marketing by businesses around the world as they tried to reach out to customers last year, a whopping $65 was likely to have been wasted.
The level of wastage was lower in high-growth centres such as Singapore, it found.
But the problem that marketeers face in getting their message through is universal: lots of media clutter, along with savvy and sophisticated customers and an extremely competitive marketing environment.
The survey concluded that marketeers around the world believe the marketing wastage rate for businesses trying to sell their wares to consumers was a significant 65 per cent. It was a lower 45 per cent for business-to-business firms.
In countries with relatively low economic growth, such as in North America, Britain and Australia, the estimated overall wastage rate is 60 per cent, compared to 40 per cent in countries with higher levels of growth such as Singapore, India and China.
Top 10 platforms
THE most effective marketing platforms of 2007 according to Fournaise’s report:
1. Direct marketing
2. Public relations
4. Online e-mail messages
6. Online (referrals)
7. Online (display ads)
Source: The Straits Times 12 Feb 08