Smart Show: Traditional Marketing - Fruchtman Marketing

Traditional Marketing Plan of Attack

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The biggest lie in advertising.

Traditional Media is Dead

Print AdsNewspaper

Radio

TV

Yellow Pages

MARKETING SURVEY

AGE OF RESPONDENTS

18-24 2.9%

25-34 8.6%

35-49 18.3%

50-64 45.2%

65+ 24.7%

YOUR Survey Says!

Do you listen to local AM/FM radio stations?

ALL 18-

34

Yes 81.4%

90.9%

No 17.6% 9.1%

YOUR Survey Says!

Where do you listen to AM/FM radio?

ALL 18-34

At home 3.9%

At work 8.8%

In car 73.5% 90.9%*

Other location 2%*Remainder in age category did not respond

YOUR Survey Says!

Do you watch TV?(CBS, NBC, ABC, FOX, CABLE)

ALL 18-34

Yes 98% 90.9%

No 2% 9.1%

YOUR Survey Says!

How do you watch television programming?

ALL 18-

34

Television Set 97.1% 100%

Mobile Device 5.9% 27.2%*

Desktop Computer 8.8%

27.2%**Represents respondents who chose more than one answer.

YOUR Survey Says!

Where do you get your news?ALL 18-34

Television 75.5% 63.6%*

Radio 44.1% 54.5%*

Newspaper 42.2% 9%*

Local Website 29.4% 45.4%*

National Website 48% 81.8%**Represents respondents who chose more than one answer.

YOUR Survey Says!

Which of these represents the amount of recorded TV you watch? (DVR, etc.?)

ALL 18-34None 29.4% 27.3%Under 25% 20.6% 18.2%25% 12.7% 9%50% 17.6% 18.2%75% 11.8% 18.2%

All 7.8% 9.1%

YOUR Survey Says!

Do you read your local newspaper?

ALL 18-34

Yes 58.8% 27.25%

No 40.2% 72.75%

YOUR Survey Says!

If yes, do you read the printed versionor digital version?

IF YES 18-34

Printed 51% 33.3%

Digital 15.7% 66.7%

YOUR Survey Says!

Do you read local consumer magazines?

ALL 18-34

Yes 42% 45.5%*

No 51% 54.5%*

Not available in area 9%

*No respondents in this age category said it’s not available

YOUR Survey Says!

Do you read national consumer magazines?

ALL 18-34

Yes 44.1% 54.5%

No 54.9% 45.5%

YOUR Survey Says!

Do you notice outdoor billboards?

ALL 18-34

Yes 87.3% 90.9%

No 12.7% 9.1%

YOUR Survey Says!

Are you more likely to pay attention to a digital billboard?

ALL 18-34

Yes 50% 45.5%

No 48% 54.5%

YOUR Survey Says!

What do you primarily use Facebook for?

ALL 18-34

Interacting with friends/family 73.5% 72.7%

Interacting with brands/companies 13.7% 27.3%

YOUR Survey Says!

What would you say is an accurate amount of time you surf the web each day?

ALL 18-34

Under 1 hour 53.9% 9%

2-4 hours 39.2% 64%

5+ hours 5.9% 27%

YOUR Survey Says!

What would you say accurately depicts yourinteraction with web banner ads for a

company or product?ALL 18-34

I notice them but never click* 34.3% 27.3%

I notice them but rarely click* 49% 45.4%

I notice them and usually click* 14.7% 27.3%

I notice them and always click* 0% 0%

*All respondents interested in product

YOUR Survey Says!

Which advertising vehicle would you say personally most influences you or has the greatest impact on your

purchasing decision?ALL 18-34A television commercial 34.3% 27.3%A radio ad 4.9% 0%A billboard 1% 0%A newspaper ad 7.8% 0%A magazine ad 10.8% 18.2%An online banner ad 2.9% 0%A Facebook ad 4.9% 18.2%Email blast 27.5% 36.3%

YOUR Survey Says!

What is your household income level?

ALL 18-34

Up to $50,000 7.8% 27.3%

$50,000 - $100,000 25.5% 36.3%

$100,000 - $150,000 26.5% 18.2%

$150,000+ 29.2% 18.2%

YOUR Survey Says!

What is your gender?ALL 18-34

Male 52.9% 27.3%

Female 46.1% 72.7%

YOUR Survey Says!

What is your education level?

ALL 18-34

High School Diploma 5.9% 0%

Some college 27.5% 36.4%

College degree 53.9% 63.6%

Advanced degree (Masters, Ph.D) 8.8% 0%

YOUR Survey Says!

Traditional media is not dead!

Liars can figure and figures can lie.

2004

“We have reached the end of the era of mass marketing”

-Forrester & Co.

2012

“Social media tactics are not meaningful sales drivers”

-Forrester & Co.

What do you primarily use Facebook for?

ALL 18-34

Interacting with friends/family 73.5% 72.7%

Interacting with brands/companies 13.7% 27.3%

YOUR Survey Says!

2006

“The end of television as we know it”

-IBM

2008

“Probably 2/3 or more of the householdadvertisers care about reaching will befast forwarding through commercials”

-TIVO CEO

2013 Nielsen Report

8% of total TV viewing in the US was done on a DVR and only 50% of the time

people skipped the spots.

That’s 4%!

BIG SIX Study:

In the US, people with DVRs watched 12% more TV.

However, 90% of them skipped the ads.

So is it 4% or 90%?

2007 Wired Magazine:

Traditional TV won’t be here in 7-10 years.

How do you watch television programming?

ALL 18-

34

Television Set 97.1% 100%

Mobile Device 5.9% 27.2%*

Desktop Computer 8.8%

27.2%**Represents respondents who chose more than one answer.

YOUR Survey Says!

Which of these represents the amount of recorded TV you watch? (DVR, etc.?)

ALL 18-34None 29.4% 27.3%Under 25% 20.6% 18.2%25% 12.7% 9%50% 17.6% 18.2%75% 11.8% 18.2%

All 7.8% 9.1%

YOUR Survey Says!

We hold these marketing beliefsto be near and dear to us:

1. Traditional advertising is not dead.2. We’re pretty sure, however, the Yellow Pages is dead.3. Traditional advertising is extremely important to customers

beyond the bridal age. And, they have the big bucks! 70% of all wealth is with people 50+.

4. Even the coveted 25-34 demo engages with traditional media.

5. People don’t like advertising. Never have. Never will.6. They don’t like advertising any more on digital properties.

Remember, over 83% of you rarely or never clicked on an ad, even if interested in the product.

7. People don’t care about following your brand on Facebook. It’s not why they are there.8. Great advertising can and will still persuade a consumer

to purchase. The key word here is “great”.9. People’s habits are changing. Contrary to public opinion,

that’s not overnight. 10. In 2015 (and the near future) traditional advertising is

important to your media mix. Its demise is greatly exaggerated.11. If you don’t think your website is one of your most important marketing tools, you’re wrong. (Remember, the Yellow Pages is dead)

12. Digital marketing alone is not going to change your business.13. We believe in digital marketing! It should be a part of

your mix. We don’t believe it’s a silver bullet.14. It would be great if all of your customers came from

WOM. But, that’s not happening.15. You have to have EXCEPTIONAL service or do something

exceptional to get someone to recommend you or talk about you for FREE. Sorry, to acquire new customers, you have to advertise.

16. No one really follows you on Twitter.#You’renotthatinteresting.

17. Who cares if you have 125,000 Facebook fans? Do they shop with you? It’s not about the number. It’s about the quality.

18. If you’re not capturing a customer’s email address, you’re missing out on a tremendous inexpensive opportunity to

sell! It’s no longer an option.19. How do we know your advertising is working? Increased

traffic to the door from marketing initiatives and increased sales by you and your staff. TrafSys creates a good door counter that’s inexpensive.20. You can’t be successful without a plan.

THE PLAN

RULE OF THUMB:

• 5-8% of gross sales should go to your marketing including any fees.

Consider your market conditions, location and competition.

RULE OF THUMB:

• Examine your sales history over the past 3-5 years and look at month by month

averages. Assign the percentage as a part of the yearly sales. For example, you may find

December to represent 20% of sales.

YOUR BUDGET CAN BE BROKEN DOWN THIS WAY:

TRADITIONAL MEDIA EXPENDITURES:

• TV, radio, print, billboard, cinema, Pandora Internet Radio, iHeart Radio,

production costs, etc.

DIGITAL MEDIA EXPENDITURES:

• Social media, website, paid search, digital advertising, email marketing,

retargeting, production costs, etc.

EVENT MARKETING EXPENDITURES:

• Private parties, trunk shows, birthday/anniversary programs, direct mail, production costs, etc.

TYPICAL FULL-SERVICE CLIENT PERCENTAGES:

• Traditional Media Average: 50-55%• Digital/Media Average: 17-20%

• Event Average: 25-28%

THANK YOU!

ellen@fruchtman.com angie@fruchtman.com

419.539.2770