In our last blog, we continued the analyzation of the Nielsen 2022 Annual Marketing Report. We looked closely at business owner perceived effectiveness of primary paid traditional channels, so this time, our focus shifts to the perceived effectiveness of primary paid digital channels.
Once again, the question posed in this global survey by Nielsen was “Please rank the effectiveness of each of the following paid media channels for your business.” Percentage scores were tabulated by adding the ‘Extremely Confident’ + ‘Very Confident’ rankings given.
Here’s how things rank in the digital realm:
- 64% – Social Media (Facebook/Twitter/Instagram/Tik Tok)
- Tie 58% – Search (placing online advertisements in search engine results)
- Tie 58% – Online/Mobile
- Tie 58% – Video: Online/Mobile
- 51% – Email
- 49% – OTT-TV/Connected TV (Over the Top/Internet on-demand Streaming video services, like YouTube, Netflix, Discovery+, Hulu, Peacock, Disney+)
- 48% – Streaming Audio (Audio services like Pandora/Spotify/Amazon Music/Apple Music)
- 47% – Native Advertising (resembles a publication’s editorial content, but is paid by advertiser to promote their product/service)
- 44% – Podcasts
Now, just a refresher of confidence percentages of traditional channels compared to the above numbers: Linear TV and OOH (Outdoor/Billboards) were the highest ranked traditional media channels, with 47%. They each would be tied for 8th if incorporated into the digital channel’s ranking.
So, this begs the question, “Why is confidence so much higher for paid digital channels?” As I touched on in the last blog, much of it has to do with analytics: the ability to measure the reach, track the frequency, see the click-thrus, retargeting, consumer insights, the receive and open rates of emails, geographical location tracking, demographic selection, etc. It’s the ability to show a direct correlation of the ad spend to a detailed customer base reaction or result, the scientific cause and effect of the messaging with no guesswork, which provides significant return per dollar spent. Digital marketing also allows a sniper-like demographic and geographic targeting accuracy for less perceived demographic spillover or waste. Want 45 to 55-year-old Men who are car enthusiasts and Star Wars fans that have graying hair in a 10-mile radius? (Wait…that’s me!) You can target them with your message. And just specifically them…at work, in their car, at the gym and at home…on their Facebook Newsfeed, Google searches, Instagram Stories, in their Spotify Playlist, their Gmail, their Ted Talk, their YouTube pre-roll, and even their Paramount+ viewing of 1883 (also me, paid subscription is cheaper with ads!). Digital channel marketing allows you to super-serve your specific targeted audience: brand loyalists, raving fans, your competition’s fans and those unaware of your existence. Digital options also create name recognition and visible space on the online shelf…and that’s exactly what you want to create brand awareness, engagement and ultimately, brand loyalty. That leads to not only financial lift, but business sustainability and longevity. At CMOco, we are digital channel experts and offer over 15 digital options that will help your business prosper.
Two final takeaways from the Nielsen report that tie all these blogs up in a big bow: “…it’s not uncommon for brands to find it challenging to quantify the effects of brand building on long-term sales. It’s not surprising to see a greater focus on short term wins, especially in recent years. The good news is that Nielsen’s experience base shows that on average, a 1-point gain in brand metrics, such as awareness and consideration, drives a 1% increase in sales.” And “…a survey of purchase journeys across 80 product categories found 85% of purchases involved brands the customer had already tried in the past, and 22% of consumers felt nervous about trying a new brand.”
To summarize, I’ll repeat the Key Takeaway of the Nielsen Global Annual Report:
Brand Awareness has never been more important.
In our next blog, we’ll talk about another potential marketing avenue, a ‘digital diamond in the rough’ that has gone 10 x platinum in the last few years…people who have created their own personal brand and are living large thanks to their social media platform followers…the influencers.
– Bruce Thiem, CMOco Director of Integrated Media