New Media vs. Old Media
I am often asked, or find myself participating in a conversation about the advantages of using old media vs. new media. Often I run into business owners who advertise using newspaper, radio or TV and they swear by it. While I would not disparage the old media way of advertising I would draw comparisons to show where you can get the most bang for your buck.
For the purpose of this post I am considering newspapers, TV and Radio to be old media. In some ways all 3 have adopted technology but mostly use the old method of targeting demographics (or lack of). New media is Social Media, Mobile Apps and the internet (websites, search engines).
In This Corner, Old Media
With Newspaper Ads, TV and Radio you are generally targeting a large population, sometimes in the hundreds of thousands. While that might seem like a lot of bang for the buck (and in some cases it is) let’s think about that for a minute. Let’s suppose I am a dentist who specializes in Endodontics (Google it). If I place an ad using old media that reaches 100,000 people how many of those people are going to drop what they’re doing and contact the dentist? Let’s do some simple math.
Let’s suppose my ad costs $5000 to run on a regional radio show for 2 weeks. That’s probably a pretty reasonable price, right? Now let’s say your total reach is 1 Million. Now you’re thinking wow, that’s amazing for that price. But how many of those 1 million people are currently seeking a dentist who specializes in Endodontics? Let’s suppose you get 5 people who call you requesting more information. Again, considering the specialty this is probably a pretty reasonable estimate. Well it just cost you $1000 per lead.
I’ll go a step further, let’s say you received 100 calls requesting more information. It still cost you $50 per lead and you have not sold anything yet.
In This Corner, New Media
Let’s take the same Dentist and have them put an ad on Facebook. And let’s say that the Dentist is in Connecticut (because that’s what I am an expert on). Well for starters that Dentist is now targeting around 1.4 million people but we know those 1.4 million people will not be looking for a Dentist. The beauty of Facebook (and Google, Twitter, etc…) is you can target only those looking for what you are offering! That means instead of paying thousands of dollars so that my message is heard largely by a population that does not care about what I am offering I can pay a few dollars for people who want what I have.
In the case of the dentist, if he/she was to get 100 people to click through it would cost him somewhere between $75 to $500. Now if we set up the add for page likes the potential client now has a steady source of information and is able to make an informed decision when they are ready.
Now I know what some of you are thinking…I need sales NOW. Well it just does not work that way anymore. People want to know more about you, what you do, who you are, are you knowledgeable and how do you conduct business. You can’t get that from a newspaper ad or radio commercial. You can get that from an active Facebook page or Website with a blog.
Taking it a step further, if you create a mobile app for the Dentist (I know it seems a little crazy but it would work), then anyone downloading the app is a potential client. If you spend $500-1000 for an app that includes your blog, contact form, videos and other userful things, and has the ability to notify the customer when there are updates then you are now communicating with someone who is interested in your services. Making it even more interesting you can have the app notify the user when their next check up is and what the should be doing in they mean time. That seems like a pretty useful app to me.
The Final Tally
Old Media Spend-$5000, cost per lead even with a very generous reach is $50.
New Media Spend-$1500 and you are interacting with potential clients consistently and delivering your message over and over. Cost per lead is approximately $3-5.
Newspaper, TV and Radio realize that the pendulum has swung away from them and have taken to new media as well. If the media source you are using can place your ad on their new media channels as well, while keeping the cost down then it may be worth while to investigate a little further.
An IT company I know was contacted by an old media company. They are a local news outlet in Connecticut. They were offered an ad placed on the news outlet’s website for a fairly modest fee of $140 a month. This seemed reasonable so the IT company moved forward with a 1 year contract. The news outlet is a fairly popular local news source in Connecticut, and the sales rep said the site received hundreds of thousands of visits a month.
After one year the IT company received exactly ZERO leads from the site. During that time I also marketed the IT company on Facebook and Twitter, occasionally using ads but most of the time using organic methods. From Facebook and Twitter during the same time frame they received dozens of leads and developed 28 loyal customers.
Food for thought
One Last Thing
Did you Google Endodontics? You just used New Media. I’m just saying!
Need help with your new media plan? Use the contact form to your right or at the bottom of the page. Alternatively you can call me at 203.806.0736 but don’t hesitate..your competition is already using new media.