Should I outsource my media buys?
DigiWorld Partners White Paper Shows The Value of Outsourcing Media Buys
According to recent statistics reported by eMarketer, total digital ad spending in 2017 is projected to exceed 77 Billion dollars, which equates to roughly 38% of all ad spending and will surpass television ad spending for the first time globally. A large component of that advertising pool comes down to PPC Management of paid search and social media campaigns on major platforms like Google and Facebook. The trajectory of global digital ad spending is also expected to reach critical mass in 2018 with a spend of more than $252 billion overall. Those numbers seem powerful, but how much of that is dead money chasing false targets, and what kind of ROI can buyers rely on when their spend is being managed by an in-house team of traditional ad buyers attempting to monetize the period of transition while they are learning new skills at the same time?
Modern media buying isn’t just slightly different from the sort of ad channels many traditional advertisers are accustomed to harnessing, it requires a new set of tools and a completely different approach due to the velocity of the audience and the rate of change trends now create. The reason this white paper is gathering so much attention is the fact that I have a background working in both B2C and B2B markets from the client and consultant sides of the equation. The purpose of the paper is simply to help companies establish a sensible plan of action as they seek to expand their reach into new media channels without wasting resources along the way.
DigiWorld Partners explores 7 key benefits of outsourcing media buys to digital professionals based on clearly identifiable elements of successful new media campaigns. Resource Management, Broad Market Insight, Big Data Insight, Specialized Tools, Team Scalability, International Expertise and Cost Effectiveness.
Some executives mistakenly assume they would be best off attempting to build a media buying team from the ground up. The fact is, the strategic aspects of running a for-profit business campaign require an immense amount of experience, and the learning curve is usually far more costly than some may expect. Getting the most out of each ad spend requires a massive amount of data collection, analysis, habit tracking, pitch tuning and testing. That work is made exponentially more complicated by variances in local cultures around the globe, an array of billing restrictions, trend and policy changes by major platforms in the market, so having a professional team that is already well-versed in what actually works makes a huge difference.
Among clients who opted to outsource their media buy activities after attempting to manage them all in-house, DigiWorld Partners reported a median sales revenue gain of approximately 18%, while their clients also reported a corresponding reduction in overhead costs of 25-35% which demonstrates the enormous power of working with an experienced team. The savings come predominantly from eliminating the need to orient, train and retrain staff because DigiWorld retains its edge by continuing to work with properly vetted, experienced buyers that have already established a proven track record in relevant niche markets. The revenue increases are a function of running the right ads, during their best efficacy and being able to evolve campaigns effectively as trends change, marketing materials become stale and audience demand new lures to earn their attention.
The proliferation of ad blockers, pre-paid credit cards and free content online along with the rise of a more jaded millennial consumer clientele have left some companies feeling left out. It’s no longer good enough to just throw-up passive advertisements and hope for revenue to return as a result. Modern marketing is much more about creating a sense of engagement, establishing a connection with cue givers, understanding your target audience and enticing them to want to participate in your campaigns. When a customer contacts you about your product or service, rather than being contacted by you, that’s when you know your latest campaign is a success.
It’s a very simple concept to grasp – You don’t go out and tell a twenty year old college student what car they should buy, or what kind of clothing that ought to wear. In fact, if you really want them to be interested in your products you don’t want to initiate interactions with them directly at all. You want their girlfriend to mention your shirts look sexy, or their friends to chat about your car as being the coolest one in their price range. Real social media engagement and ad buying these days is about building consensus, establishing trends and fueling conversation. In the end, when done well, your target audience identifies you before you even have the chance to identify them.