Companies spend billions of dollars a year on advertising, yet hundreds of millions of that is wasted because they fail to effectively marketing their product(s) to a targeted audience. It is critical for businesses to reach out to consumers that want and need their products and/or services. This has clearly proved to be one of the most frustrating challenges facing business leaders today. A comScore study reports that less than 10% of marketing campaigns actually reach their target audience.

The web, mobile, social media and other technological advances have changed consumers’ media viewing habits. In fact, take strategic advertising thought leader and consumer products manufacturer Procter & Gamble Co (P&G). The company spends nearly $9 billion per year to advertise its family of products. The company found social media sites such as Facebook, Twitter and YouTube to be more effective channels for reaching women than sponsorship and production of soap operas.

P&G is now said to be ending its 77-year run as a prominent sponsor and producer of soap operas in favor of producing more campaigns using social media. However, the company will continue to advertise during daytime TV including soap operas as a way to reach consumers. Marketing chief, Marc Pritchard, of P&G says, “In our marketing approach we build our brands based on the appropriate integrated holistic marketing campaign that reaches the consumer when and where they are receptive. As consumers spend more time online and via social media networks, our brands are naturally adding these options to their marketing plans as it helps them engage and serve consumers.”

Savvy media buyers, such as P&G, know that since consumer media habits have changed and shifted from the television to the web, social media and mobile, it is no longer a solid strategy to spend millions of dollars on television to reach their target audience. If business leaders want to get the most bang for the advertising buck and stay ahead of the competition, it is imperative to know who your target audience is, where they are located and how you are going to reach them.  It is also important to be aware of the latest media trends.

This here is what excites me about Moguldom Media Group (MMG). Moguldom is the nation’s largest growing family of digital brands that targets the urban psychographic. Each brand targets a very specific demographic within the urban psychographic. We know our audience. We know how they want to be communicated with. We know how to effectively reach that young entrepreneur, the urban techy or the mother of a household. Our goal for each client is to design and develop a campaign that will not only effectively meet your campaign objectives, but will also effectively reach your target audience. This way, your advertising dollars will not be wasted.

For more information on how Moguldom Media Group can help you effectively reach your target audience please feel free to reach out to Tiffany Nasralla our Digital Marketing Strategist.

Source

The New Yorker was able to get up and close with Gawker Media last month and reported that the company’s annual revenue fell within a range of $15-$20 million. This number is extremely low for a site that does over 400 Million pageviews per month, has a mature sales force, AND that has seemingly “taken the high road” by kicking all ad networks off of their blogs. Essentially, Gawker Media is getting about a $3.54 total page CPM if we stick with a $17M annual revenue number. This is NOT CPM per ad unit but all the advertising on each page, added up. For example, 3- $1 CPM ads would be a $3 total page CPM. Assuming Gawker averages 3 ads per page, their effective per unit CPM would be only $1.18 per 1000 impressions.

Assuming the New Yorker’s annual revenue range is accurate, what publisher is going to stop working with ad networks to capture subprime CPM’s, as low as a “back out” to $1.18 CPM? Gawker could probably get this Net CPM without a direct sales force and without $5-10M in sales related costs, via ad networks.

Sure, working with ad networks will frustrate and undermine your direct sales efforts and possibly your brand proposition but by how much? What are you getting when working with ad networks:

-Getting partners who can fill what you can’t with your own direct sales force
-Getting partners who will most likely pay more consistently and faster than ad agencies and with significantly lower late payment risk
-Getting partners who can drop cash in the door on a monthly base without any fixed expenses or real cash going out of the business ( ad networks can be margin friendly, no sales related fixed costs such as payroll, office, travel, healthcare, etc).

What are you losing/giving up?

-Commission, 30-55%
-Potentially undermining direct sales force-why buy direct when I can buy significantly cheaper via ad network. (There are strategies to minimize this risk).

The “anti-ad network publisher” is not working with Google Adsense, the biggest online advertising ecosystem on our planet. These “high minded” publishers are also skipping “search” advertising, which outspends display advertising by about $2.5 to 1. Looking at the cost/benefit of using ad network partners, it’s not a surprise why publishers such as The NY Times (Adsense), Bloomberg (Adsense), WSJ (Microsoft Search), Huffington Post (Adsense) have bought into the “ad network game”. Ad networks are a necessary evil for sophisticated publishers. A basic and imperfect strategy that couples direct sales with ad networks makes sense.