As promised in my post yesterday, here are my top four reasons why many CPG clients are not spending the money we think they should online. I also offer up some suggestions as to what we might do to help remedy the situation. I know some of this may seem simple and basic, but, at this point, I think the basics are where we need to begin.
REASON NUMBER ONE: Clients are not totally convinced shifting dollars to the online channel will work. Sure, they’ve read all the articles, seen the research and understand the overall concepts of why they should spend more online. But putting 10 to 15% of their advertising budget in the online space is such radically different behavior—and there is so much at stake—that they are not willing to take such a high risk without being reasonably certain about the outcome.
WHAT CAN WE DO? Continue to show clients reputable studies which prove beyond a shadow of a doubt that their target audience is spending an increasing percentage of their media consuming hours online. But more importantly, work with the sites to come up with case histories that prove online work is every bit as powerful as conventional media when it comes to creating awareness, driving trial and building loyalty. We MUST do a better job with this. We should also propose simple, low-cost, measurable tests that prove our point.
REASON NUMBER TWO: The online space is so damn complicated. The complexity of the online channel makes OUR heads hurt and we live it all day every day. Think what it does to our clients. Start with the thousands of options we have when it comes to where we can reach our audience: portals, editorial sites, communities, blogs, our clients’ product sites, our own engagement sites, and that’s just the beginning. Then multiply that by the choices we have when it comes to bringing our ideas to life: video, Flash, animation, expandable ad units, site partnerships of all shapes, sizes and costs, branded content, unbranded content—not to mention the ad-serving and other technologies involved in executing our ideas. Compare that to buying 30-second TV spots or 8 ½ by 11-inch magazine pages from a familiar, clearly defined media set.
WHAT CAN WE DO? We must find a way to simplify the landscape. We need to help clients understand how their consumers are using the Internet, and where their brands could best meet them there with meaningful content. At Digitas we have a couple of ways to break down the myriad of choice into more easily understandable activities that people do online. It’s a good start, but there’s much more work to do.
REASON NUMBER THREE: And this is directly related to reason one: there isn’t an acceptable standard of measurement that proves money spent in the online space is meeting clients’ objectives. I think we are making progress here, and one could certainly argue that traditional metrics such as gross impressions and attitudinal shifts are less than perfect. But they’ve been around forever and clients are comfortable with them.
WHAT CAN WE DO? We need standards here as soon as possible. So we should use our influence to make sure sites and media planning and buying companies increase their efforts and collaboration in this area. Which leads me to my fourth and final reason…
REASON NUMBER FOUR: Media planning and buying agencies are not encouraging clients strongly enough to shift spend. Now I know that there are exceptions here. I’m actually working with some of them. But overall, I believe that because of the complexity of the online space, and because their clients are not demanding it, many media agencies are sticking with what they know and love. The fact is, no matter how strongly we believe that clients should be spending money in the online channel, we clearly have a vested interest here. Our media partners ostensibly do not. Their recommendations will carry more weight.
WHAT CAN WE DO? Beg? Buy them lunch? Seriously, as I’ve mentioned before, we must work more closely than ever before with our colleagues in media agencies. It is the only way that both of us will do the right thing for our clients in a rapidly evolving media world.
So there you have it. Of course, I am sure that there are a bunch more reasons you could come up with. Or maybe I’m totally off base. Either way, let me know. Our collective wisdom here is certainly needed if we are to be successful sooner than later.