Twenty or thirty years ago no one could have predicted that everything and everyone would end up being plugged in and online 24/7, in fact 30 years ago no one knew what being online and plugged into the 'cloud' was or what the internet was or what the world wide web or eCommerce even referred to, these are all modern terms and phrases coined within the last two decades. In the past finding new customers meant physically going out and finding new customers by whatever means necessary for your business to succeed and thrive and in my opinion companies and businesses large and small used to put a lot more effort into going after new business than they do nowadays.
Look at how many large UK companies and corporation have closed their doors to the public over the past couple of decades; Woolworths, Staples, Toys-R-us, JJB Sports, Comet, BHS, House of Fraiser and any day now Debenhams will unfortunately go down the pan too after reporting record financial losses, and this years and a ludicrous plan to close up to 50 stores to save the company will not work, this seldom saves a company that's got to this position and I believe it's just done to balance the books for a while and push up the share price for another quarter to give the shareholders a final big payout, oh yes the shareholders and people at the top never lose out, just the hard working employees living month by month, so what's happened to these companies how can these companies turning over millions end up struggling financially?
People seem to have more expendable income than ever, even benefits are at still at high levels thanks to all those years under Tony Blair and those abysmal Labour government years, know one bothers saving these days either because interest rates are so low there is just no point. People are spending money, they are shopping, and they are buying new things, products don't even last like they used too so people have to buy the same shoddy, poorly made merchandise again and again so retailers and wholesalers should be rolling in it right?
Digital Marketing and Advertising Fees and Crippling Some Companies
Before the internet revolution of the mid 1990's businesses both large and small focused on the advertising basics that we all know and love, things that have worked well for many years in fact things than have worked well for decades, businesses used to advertise in telephone directories and in industry related business publications, brochures and magazines, businessmen handed out business cards to potential clients at business expo's and trade fairs and have been doing so since the late 1800's.
Businesses have also been handing out leaflets and flyers containing their latest deals and offers for years and many businesses still successfully embrace this advertising medium. However along with the internet came a new kind a marketing, digital marketing and for many businesses this was the straw that broke the camels back.
The thing about printing, design and printed advertising it that the fee structure is simple and fixed, you want 1000 cheap business cards then it will cost you so much, you want 5000 A5 leaflets then here's the cost for that, You want half a page colour advertisement in Which Tradesman Magazine, then here's the price list, but with digital marketing and advertising it is still like the wild west with many digital marketing companies not only taking advantage of companies with deep pockets but not a clue what they are doing.
Many of the large multi million pound or even multi billion pound turnover companies mentioned earlier will have had massive annual advertising budgets, budget in the millions, budgets once spent on standard printed advertising, newspaper, magazine or TV advertising, advertising where the prices are standard across the board and where profit on return can be calculated and worked out, advertising that has been proven to work, and work well.
Online marketing and advertising is different, lots of these large companies still don't have a clue about digital marketing, search engine optimisation, social media advertising of anything else relating to modern online advertising and marketing or their online customer base for that matter, unfortunately the people in charge of these departments seldom admit this to either themselves or the company they work for so when some silver tongued salesman from some fancy modern internet marketing company where the staff sit on bean bags with laptops drinking soy lattes tell them they need to increase their online social google influence footprint in the social media sector targeting 18 to 35 years olds in the gender neutral demographic - I totally made all that nonsense up by the way - they simple pay the invoice rather than admitting that they don't understand.
The truth is that many of these so called top internet marketing companies are simple fleecing these clueless corporations and until they get wise to the fact that it doesn't cost millions of pounds every year to reach customers online or that a lot of the digital marketing they are throwing money at either doesn't work or has no relevance in their business niche these big corporations will continue to close when spending more in internet advertising and marketing than they get in revenue becomes un-sustainable.