Skip to main content

Why your Marketing Budget Allocation is Madness


eMarketer reports that the Web and its meritocracy for content publishing has put more power into the hands of consumers and business buyers. They can easily conduct their own product research, get advice and read reviews from peers, and share their own perspective.

According to a market study by marketing services company Alterian, this apparent transformation has led to increasing public skepticism and cynicism of many traditional marketing practices.

Rather than simply trusting experts or putting faith in brands, Internet users expect to do their own research and comparison shopping using many different "more trustworthy" sources.

Nearly every respondent to Alterian's survey did their own research and comparisons before a purchase at least sometimes, and 71 percent said they looked for as many information sources as possible to verify their findings.

Friends and family were most likely to be trusted for advice, while advertisements and other carefully crafted marketing messages from companies were deemed to be least trustworthy.

A recent market study from marketing agency Jack Morton supports the picture of shoppers putting together online and offline information sources rather than accepting what they are told by those with an obvious vested interest or other apparent bias.

The top three sources that influenced purchase decisions for U.S. Internet users were friends and family sought out for their opinion (53 percent), friends and family who offered their opinion (49 percent) and objective online research (49 percent).

Alterian advises marketers to recognize these empowered consumers as individuals. Traditional broadcast messages are wasted effort, but targeting Web users who feel in control of their own relationships with brands -- through trusted channels, such as social media -- could be much more effective.

For example, while just 16 percent of respondents overall thought companies were "genuinely interested in them," that proportion more than doubled among those involved in social media activities. This begs the question, why do most marketers continue to spend the majority of their budget on traditional advertising?

They say the definition of madness is doing the same thing, over and over, and hoping for a different result. So, how mad is your current marketing budget investment strategy?

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Upside for New 5G Network Transport Infrastructure

The global mobile communication sector is in the midst of a significant network infrastructure upgrade to support the introduction of new high-bandwidth and low-latency broadband service offerings.  Telecom service provider data centers have an important role in fifth-generation (5G) network deployments. Providers undergoing their transition to Stand-Alone (SA) 5G must understand the technical demands of telco data centers and the key enablers of those offerings. According to the latest worldwide market study by ABI Research, the major prerequisites of 5G and the emerging transport solutions would help operators position themselves to successfully capitalize on the new revenue opportunities from delivering differentiated 5G connectivity services. 5G Transport Network Market Development "The rise of the telco data center has a high degree of confluence with the requirements of SA 5G architectures. SA 5G and its increasing reliance on telco data centers can be attributed to the incr