Many Internet advertising companies, as the media become more and more transparent, the overall profit is low, except for the sales commission and wages, rent, etc. In the face of such a dilemma, what should advertisers do next?
Here is a strong recommendation for advertising companies to transform into digital service providers!
At present, the Internet information is becoming more and more developed, market education has been paved very well, and businesses, bosses, etc. have marketing awareness, but there is a lack of suitable companies to serve.
Why are digital service providers more competitive, with higher ceilings and greater profits?
Digitalization is a complete set of industry solutions for businesses or enterprises. Including but not limited to, customer drainage, private domain operation, store management, brand planning and other dimensions.
Take a household goods company as an example, the annual marketing budget is 500,000 yuan. The company's annual marketing budget allocation may be as follows:
Advertising (100,000 yuan): Targeted drainage and customer acquisition are carried out through information flow advertisements such as WeChat Moments and Douyin to improve the brand.
Private domain traffic operation (100,000 yuan): Use platforms such as Douyin, **, and self-** to carry out private domain traffic operation, establish in-depth interaction with consumers, and improve brand loyalty.
Event Planning (100,000 RMB): Promote user participation and interaction through well-designed online and offline activities, and increase brand attention and user engagement.
Enterprise cost reduction and efficiency increase (200,000 yuan): Introduce customer acquisition system and store system to improve the internal operation efficiency of the enterprise, reduce operating costs through data analysis, and achieve higher economic benefits.
If you are just a traditional advertising agency, you may only be able to provide very limited advertising services to customers, while the agency operating company is more focused on one link.
In contrast, if you are a digital service provider, you have the ability to deeply understand the characteristics of the home furnishing industry, and provide customized services for customers in different dimensions according to the company's pain points and needs, so that the customer's budget can be more reasonably and effectively allocated, and the comprehensiveness of the service will be improved. When your customers are satisfied, you build a closer relationship.
Under this model, the company is more profitable and reduces the risk of customer churn, which is why digital service providers are more competitive, have higher ceilings, and are more profitable.
For example, there is a local advertising company A, its main profit model is focused on the advertising business, the other party and you contact the same customer, and you are a program marketing, the advertising business is not profitable, and the follow-up other business service customers to make profits, how can company A compete with you?
Of course, it is not easy for advertising companies to take the route of digital service providers, which is inseparable from the support of technological innovation, and they need to build their own system platform and integrate internal and external data resources. The system should cover multiple aspects, including data analysis, advertising, social management, customer relationship management, etc. In this way, you can improve the efficiency of advertising and optimize the customer experience.
Building your own system advertising platform also faces a series of challenges, such as high upfront investment costs, expensive server costs, and relatively insufficient product technical teams.
In the face of this situation, there are mature advertising technology service providers in the market to provide similar services, such as Baiying** Cloud, sharing 10w+** resources, helping the company to expand diversified advertising forms, and system resources can also empower their own business and help you specify programmatic marketing. Through local deployment, the company can achieve the system online within one working day at the earliest, enjoying the advantages of low cost and low threshold.
Finally, if an advertising company wants to achieve sustainable development, it must clarify its own foothold, its strategy for the next 3 to 5 years, and its core competitiveness in peer competition.
The customer will never be yours, but the position of the company can not be shaken, through the digital service provider route, the advertising company can provide customers with more personalized, diversified, all-round services, to build the core competitiveness of the business, truly based on the industry.