Business Marketing – The return of Traditional?

Business Marketing

Business Marketing Under GDPR - are we about to see a shift in advertising budgets?

Business Marketing under GDPR

As the last London Central Yellow Pages is being distributed, a mainstay icon of the early part of my career at Yell, (it was both useful as an advertising medium and as the largest directory, getting my monitor to the right height for Health & Safety.) It’s not hard to argue that Yellow Pages has had its day, but if implemented sooner, would GDPR’s effect on other advertising media have helped prolong its existence? and poses the question if other traditional advertising types could re-emerge as viable business marketing strategies under GDPR? Could we see a Direct Mail resurgence or a growth in local press?

Advertising spends have seen a bit of a shake up post May 25th, so lets look at a few of the area’s affected and discuss where some new(old) opportunities may work.

Has advertising changed?

GDPR has caused a lot of companies to lose a lot of data, so whilst it can be argued that they are marketing to a more targeted data pool and produce better ROI, in terms of volume, the absolute volume of enquiries will be down. So unless you’ve (shameless plug ahead) called up Koju and purchased some of our GDPR compliant data, extra activity will need to be planned to bring in the missing volumes.

Email Volumes down?

Email is the most affected medium here, as both reduced audiences and a general misunderstanding of GDPR (mainly in the B2B sector) by advertisers and recipients alike, email has had a rough ride since May 25th. As Consumers understanding of GDPR and Legitimate Interest grows over time, we can expect email to carry on, but its unlikely to reach the same volumes as pre GDPR, especially in the B2C area, where ‘consent is king’

Using data across Social/PPC has also become a little more difficult, as both Google and Facebook aren’t allowing the transfer of data across platforms, so advertisers are struggling to track their own data. Is the online space in a bit of flux?

Changes to Online Advertising – Shift from Programmatic to Contextual?

To track users across the web, companies would use Cookies and IDFA’s (identifier for Advertisers) but GDPR re-categorises both as personally-identifiable information, and therefore restricts their use unless the user offers unambiguous consent. The initial impact of this seems to have hit Programmatic Advertising quite hard, as estimations show that spends fell by up to 40% on May 25th, with many USA based advertisers halting all ad spend to Europe. Although revenues have begun to recover as more people have opted-in, but there is still a lack of GDPR compliant data for the medium.

As contextual advertising is based on the content of the page, rather than the users cookies, it is fully compliant with GDPR and can produce great returns – selling running shoes on a men’s fitness website just makes good sense! So we could see a shift in the dynamics of display advertising if advertisers can be persuaded that contextual can produce the ROI they are used to.

Could traditional advertising methods fill the void?

We spoke to Martin Cole – Head Honcho @ RP2 to gather his overall thoughts on business marketing, and he feel traditional media still has a strong role to play;

The traditional media have had to work extremely hard on proving their own effectiveness however it is clear they have a position to play, especially under the new rules of GDPR.  The combination of a media mix will always have the results long term and most traditional advertisers are internet companies.

What has been noted it the effect of watching or listening to traditional media and then instantly searching online for that product or service, having mobile devices has helped increase these rates even further. ITV has some excellent research to show the effectiveness of TV in driving search traffic to websites or apps.

As Martin points out Traditional has always had a part to play and could potentially see an uplift as the impact of GDPR is minimal on these mediums. We have also run a recent direct mail campaign for a client and saw a great response rate compared to what is bandied about as industry standard. We asked Martin if RP2 feel that traditional is valid for most clients today.

Hopefully the answer above confirmed I do, however they may need to look at their pricing policies to stay competitive as more clients want to be more accountable when allocating their business marketing budgets. 

Emergence of DOOH advertising

Outdoor or OOH (out of home), is a form of traditional, where we are seeing the convergence of technology and traditional to create a more attractive advertising medium. Unfortunate acronym’s aside, the growth of DOOH (digital out of home) is driving this area forward and again is an area not impacted by GDPR. The traditional printed posters seen on the High street, Underground and by the road side are steadily being replaced by digital screens, enabling commuter storytelling to those on the go, or even those in the toilet! Unlike traditional print boards, DOOH offers a lot more flexibility – they can be shared with other advertisers bring down the cost, they can also broadcast different messages through the day, a restaurant can produce separate adverts for breakfast, lunch and dinner menus through the day, making a much more immersive and attractive opportunity.

So in summation, this is probably a great time for you to test some of the options for business marketing we have suggested, as digital takes a little while to work out the kinks and nuances under GDPR. For more information on marketing post-GDPR, please read out blogs on GDPR Compliance & Scraping and our post-GDPR summary.

If you’d like to have a chat with Martin or a member of his agency team, you can call them on 01245 458 780.

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