Mass marketing approach is declining
Mass marketing is no longer as effective, says Gartner, with social and mobile platforms taking over as the most influential strategies, driving 80 per cent of spending
Digital marketing ‘will influence 80% of discretionary spending’
Friday, 08 April 2011 by John Burns
Managed search engine marketing and other focused digital strategies are taking over from mass marketing, new research shows. According to Gartner, social and mobile platforms are becoming much more important to marketers and will influence at least 80 per cent of consumers’ discretionary spend by 201
The research and consultancy firm notes that while digital channels have been used in managed emarketing strategies for more than ten years, most still use them for “traditional push, mass-marketed, interruption-type execution of campaigns rather than a two-way engagement approach”.
“Mass marketing is no longer a long-term strategy,” explained Adam Sarner, research director at Gartner. “Mass marketing campaigns have a two per cent response rate and are on the decline, whereas by 2015, digital strategies, such as social and mobile marketing, will influence at least 80 percent of consumers’ discretionary spending.”
Marketers must move away from a traditional campaign management strategy to a digital marketing, two-way engagement approach, he advised.
This evolving customer-focused strategy makes use of digital techniques and channels that will boost engagement, response and conversion rates, the report found.
Mr Sarner suggested that while most marketers use more than one digital channel, their approach is no different from a “spam model”, where success is driven by high volumes. But, he explains, “the hard sell isn’t working” anymore.
“The internet was built on the idea of users collaborating. Once the Internet was commercialised, collaboration was overshadowed by transactional commerce and push-type marketing techniques that focused on one-directional hard sells,” he said.
Now, however, the internet is shifting back to its original idea of interaction and participation.
The scope for marketers continues to expand, with 6.7 billion devices forecast to be connected to the internet by 2014, according to Gartner. Mobile marketing in the US was worth $877.2 million (£535.6 million) in 2010, up 138 per cent from 2009.
Meanwhile, the developing social customer relations management (CRM) application market reached $600 million (£366.3 million) in 2010, and is expected to reach $1 billion (£610 million) by 2013.
Andrew Girdwood, media innovations director at bigmouthmedia, thinks social CRM “will be a runaway success this year and next”.
“It’s a proper two plus two equals five-style approach where if you can use Twitter to interact you can use it in an effort to retain clients [and] keep people happy as well as push your promotional messages,” he explained.
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