The Value Problem in Digital Marketing
We have a problem in digital marketing. Over the past 25 years, I've watched this problem increase and it's important you understand this issue to work around it and have the success you desire. It's fairly simple; the digital world struggles with value-based perception. Two extreme opposites in this spectrum are:
- Consumer/client not understanding the value of what goes on behind the ‘magic curtain’. Because these services are not a tangible product like your BMW or your meal at the Fusion restaurant last night, value struggles for definition. Did they do the SEO work they said they would? How do you know they are really creating more successful Facebook posts? Is the website really more effective at retaining users? How do you KNOW any of this as a client/consumer? Truth is, you can’t anymore than you know the specifics of what your attorney is doing for all those billable hours, or if your mechanic really replaced that $895 part, or just gave you a bill while they drank coffee. The reason the attorney’s and mechanics struggle for respect is because of a struggle for perceived value and the level of vulnerability clients feel trusting them to do what they said. Digital work is no different. And like both of the above, this industry is full of charlatans and thieves who prey on innocent people.
- Agencies and Clients who feel no obligation to return measurable ROI because they don’t see the funds given for the project as an investment to begin with. It’s all perspective. They do their work making social media posts. They show you that they upped engagement by 5% last month. It’s not their job to make you money. It’s their job to increase engagement. The difference is huge. By not seeing the funds as an investment that needs return, they justify their work by nebulous numbers and hide behind them as proof of their value. The numbers mean nothing to the client/consumer because no direct revenue can be traced or tracked. Increasing engagement IS important, but not if your followers aren't even relevant. Increasing engagement IS crucial to success, but not if you don't have a correct sales funnel to capture the leads that come in. Most social agencies are content to leave these higher levels of thought alone, and just do 'what they do'. This only exacerbates the first problem I mentioned. We need more responsibility from providers and agencies in this space to help the clients think through their entire strategy. But, from my experience, this isn't likely to change anytime soon. The quantity over quality model is the hot ticket right now and will be for some time.
I’ll add one more thing, much of the digital world functions in their silo. So SEO, Social, Mobile, PPC, etc all function in their one space without any consideration of how it affects the other. Without a holistic approach of all pieces working together for a common goal, it’s highly unlikely real ROI will ever be attained. It’s a highly dysfunctional element within the digital world.
Seeing the problem more clearly, there is a value perception problem in the digital world; Value based perception by clients/consumers and value based perception by agencies/providers. This is what makes real digital strategy work so crucial. Without someone giving oversight to making sure both sides see the value of the other, and working towards the common goal, there is an inevitable point where things will break down. I can’t even count the number of times I have been called after people have spent thousands of dollars with a provider/agency to see ‘no results’. I also have sat in countless meetings listening to the agency/providers gripe about how ignorant and ungrateful clients are. Rather than seeing themselves as servants of the client, they are annoyed at this role of guidance.
It’s important when you are working on your digital plan that you are aware of this problem. Find someone who understands this industry and can help guide you through it because the best dollars you can spend are those ensuring your investment are seen as an investment from both sides and treated like one. There are significant returns possible in digital marketing, but they require a strategy much like a financial portfolio strategy; carefully examining the possibilities and making recommendations along the way. Agencies /providers should do a much better job at this. And clients/consumers need more awareness of the dysfunctional elements in digital marketing. Don't be easily fooled with metrics and numbers that don't equate to bottom line profits. And always make sure those you hire see your budget as an investment that needs a return. Ask them how they plan to do that, they should have a very clear answer for you.