To Survive, You Must Change the Advertising Media You Use

The change from 'traditional media' like newspapers and Yellow pages to digital media is a necessity in today's world.

Businesses in most local markets have been slow to make the transition. Even though over 80% of people use internet search engines like google.com when they want information. Answer this question..."If I use the internet to find information then why don't I believe my customers are doing the same thing?" The digital world has been embraced by the public but that embrace has been slow to come for local companies. Newspapers are struggling. They know they MUST put their content online in digital format because that's where people are going to find information. But the newspapers, and most other types of local media are not turning a profit with their online endeavors.

Some seem to have the entire process backwards. They require you to register to receive the information you want (along with other unsolicited emails) before you even know if the information they have is of interest to you in the first place. They struggle with the concept of providing good free information and don't understand that and when the customers see how valuable the information is, they will then register. This is one of the best examples of "putting the cart before the horse" that I have ever seen.

Traditions die hard. The media's digital expansion cannot be avoided. Most business owners have 'grown up' using traditional methods (and media) to solve problems. The whole digital transition is anything but traditional.

Many are now so far behind the curve that there are serious doubts as to whether they will be able to survive at all. Getting creative and finding innovative ways to cut expenses is not solving the problem. Granted it's good to reduce expenses but you must be looking for ways to expand your profits and sales volume at the same time. You can't 'hunker down' and weather this digital storm because it's not a storm at all, it's a permanent change in how we must advertise to our prospects and customers.

There's a great book titled "The Tipping Point" and many of todays local companies are there. They are at the tipping point. Will they make the transition successfully and prosper or will they hold on to the 'old ways' just a little too long and doom their future in the process? For many, I'm afraid it's the latter.

In the traditional marketplace, the advertisers spent a lot of money with traditional media like newspapers, radio, etc. These advertisers were the 'big dog' and all the media outlets knew they received the vast majority of their sales from these local companies. But something has happened. In 2008 the consumers spent more money on media than the advertisers. It's not hard to imagine how this happened, just look at your own situation. You probably have more than one cellphone in your family, and you probably subscribe to cable TV and you probably have high speed internet connections too. Total the money you spend for these and multiply it times the number of customers out there. Now the media outlets are seeing that they must take care of their individual customers (not their business customers) since that's where most of their revenues come from now. The advertisers have been pushed into the backseat.

And customer media spends don't stop there. Consider music downloads, video games (both online and offline). Current estimates are that the AVERAGE American will be spending over $1000 per year on "consumer media" within 2 years. I, and most of my friends, surpassed that number long ago.

Is there a light at the end of this bleak tunnel for local companies? The quick answer is Yes. The Online Publishers Association (OPA) conducted a study to analyze the attitudes and activities of consumers. Specifically their attitude toward local-content web sites. They tracked consumer sites like:

• City Search
• Cars.com
• Craigslist
• Local newspaper sites
• Local radio sites
• Local television sites
• Yellow Page directory sites
• User Review sites

The overall grade from consumers was that they are very satisfied with the local coverage provided.

Rated highest on the list were portals, local newspaper and local TV station sites. The ads that were rated as most trustworthy by the consumers were those placed on local TV sites and local newspaper sites. Local newspaper sites outranked review type of internet sites by a very large margin when it came to overall trust.

The point here is that consumers (and your customers are included) trust the information found on the internet.

It should be no surprise that your customers are doing more than just looking when it comes to the internet. They are making purchase decisions there too.

People are doing more than just gathering information or research. They are making purchasing decisions as a result of the information they receive online.

The five most popular local business searches were done for restaurants and bars. Followed closely by grocery stores, financial institutions (banks, credit unions, etc.), department stores, medical facilities (doctors, wellness centers, etc.) and health facilities.

Filling out the top ten searches were electronics stores, car dealers and auto service facilities (repair shops, oil changes, etc.), real estate, furniture and appliance stores and legal services.

If your business is in the top ten then you must make it a priority to adapt your advertising now. If not, then you still have some time but there is a tidal wave headed your way and you need to prepare now.

This is not a fad, it's a fact. And the sooner business owners accept the new digital media reality the more likely they will be in securing their long term future. Business owners must find ways to use the internet to communicate with their customers. And they must act now. It's called the World Wide Web but it's really as local as you want it to be. Most searches are for local information.

The question for you is...Are you as slow to embrace internet marketing services as the 'old' media? If you haven't put the emphasis on your 'online/digital' advertising, you may find yourself at the 'tipping point' sooner rather than later.

Having a website is important but that's just part of the answer. The majority of companies that go out of business today have a website. A website is a good defensive move. But you don't win in the business world playing defense. You have to know how to play offense and put your competitors on the defense.

Why not set up your marketing and force your competitors to play offense? Why not force them to react to your company tactics?

There are lots of internet marketing services available to the savvy business owner these days. Many of which, cost virtually nothing to implement. One of the most effective is direct response advertising and it happens to be one of the internet marketing services that we provide. Try it for yourself by completing the above form.

Don't delay, you may be closer to the 'tipping point' than you realize.

Ray Smith
Business Consultant and Entrepreneur