Why Most Internet Marketing Fails

Hey! This section is all about Web marketing that works. I don’t want to engage in something that’s a failure!

Despite the media’s proclamations that "the banner is dead" and "dot-bombs lead to online advertising demise," I’m here to say that Internet marketing works. But it only works when it’s applied well.

Take a look at the following misconceptions about Internet marketing to see how and why it fails. You’ll take from this article just how and why you’ll succeed.

Myth #1

The Internet is a panacea

The Internet is not the be-all-end-all that we were seduced into believing at the height of dot-com mania. The Internet is a highly dynamic, robust communications tool and as such, is an extraordinary marketing tool. But it is just that — a marketing tool. The mistake that many companies make is to treat the Internet as a stand-alone solution to their business problems. Over the past few years, companies hired Webmasters and created entire departments devoted exclusively to the Web. Ad agencies spawned Internet divisions and young entrepreneurs started up interactive service firms. This new growth created a silo mentality about the Internet where it stood in isolation from business planning and process. The Internet is a marketing tool and must be integrated into the overall business and marketing plan if it is going to be effective.

Myth #2

The Internet plan should be driven by technology

Technologists created the Internet. And the Internet functions because of technology. But companies should never develop their Internet plan based solely on technology. Technologists, Webmasters, Web designers, coders, etc. should influence the plan, but they should not chart its course. The best Internet strategy is driven by the business plan. Once you know what you need to accomplish from a business perspective, then ask the technologists how this can be carried out on the Internet. While you’re getting input from this tech-savvy bunch, remember that they do not represent your customers. Be careful that the technology you choose meets your customers’ needs. Don’t make the people you most want to nurture feel stupid by requiring plug-ins, downloads or fast connectivity to visit your site or open your e-mail. Make them feel smart by helping them find what they want on your company site. Create this experience for your customers and they will want to do more business with you.

Myth #3

The marketer is in control

For years, marketers and advertisers were in control of media messages and consumer behavior. Today, thanks to the Internet, this power has shifted to the consumer, who comes to the Net loaded with information, including knowledge about your products and cost structure. The best marketers not only accept, but embrace, this shift. They engage the consumer in a dialogue among equals, empowering them to make informed, educated decisions.

Myth #4

The Internet is a mass marketing vehicle

The World Wide Web was the first medium of its kind where you could easily and affordably reach people literally around the world. Advertisers could reach millions of Web surfers worldwide with simple banner ad placements and they considered it mass marketing at its finest. Wrong! Much of this banner advertising didn’t work because the Internet is not a mass medium but rather a niche medium. The Internet is all about segmentation and targeting. It fosters communities and serves up information around very specific interest areas. Internet users seek specific content online and will only respond to advertising that touches that interest. The savvy marketer takes advantage of this fact and creates advertising and promotional messages that motivate consumers with personal, relevant and anticipated information.

Myth #5

The Internet is good for branding

As the Internet took off, so did the concept of advertising on it. Since little of this banner advertising was highly personal, relevant or wanted, banner ad performance suffered. More than 99 percent of the people viewing these ads were not responding to them. Sellers of banner advertising defended their product by claiming the power of banner advertising for branding. Run a bunch of ads that no one responds to because it will create awareness. Now, there is truth to the power of putting your name in front of your audience repeatedly and consistently to build awareness, but banner ads alone will not do this job. If you want to use the Internet to build brand awareness, you must do it in tandem with other forms of advertising. Banner advertising and other types of Internet marketing (e-mail communications, interactive sweepstakes and promotions, etc.) are best used as direct response vehicles. Use them to give consumers a compelling reason to take action and they will.

Myth #6

The Internet is best used for customer acquisition

The Internet is great for acquiring new customers. But it’s even better for retaining customers and building long-term incremental business. It’s far easier and more profitable to build business among your existing customers than to attract new ones. Marketing costs begin to pay off when you realize the lifetime value of each customer. Use the Internet and database technology to feed your customers personal, relevant and desired information. The florist who e-mails a customer before his anniversary to suggest sending another bouquet this year will win the business.

Myth #7

The Internet is so unique that traditional marketing principles don’t apply

How’s this for irony: The Internet, in all its high-tech newness, is really an old-fashioned tool. Think about the proprietor of the general store at the turn of the 20th century. He (and it was typically a "he") knew every one of his customers by name; knew every member of her family and knew precisely what her needs were and would be. His service was personal, meaningful and sought out. The Internet now allows you to be much like that general store proprietor where you can apply this kind of personal, relevant and expected approach to service on a very large scale. Take Amazon.com. When I log in, it greets me with a list of new books it "thinks" I might like, based on what I’ve purchased, browsed and requested in the past. Traditional marketing principles apply best to the Web. Use frequency, repetition, consistency and personalization, supported by technology, to build the kind of business our successful ancestors did.

Myth #8

The Internet is no different than other forms of marketing

Now for the flip side to Myth #7. Many marketers find it easier to embrace the Internet by treating it as something familiar. Even though some traditional marketing principles apply well to the Internet, it is a new and unique medium and needs to be treated that way. I have clients who take very effective printed material (like corporate magazines) and publish them as flat text on the Web. That approach makes it very hard for users to find specific information. I advise my clients to database their content to allow their customers to search by keywords to find exactly what they want. Then ask these customers if they would like to receive alerts about future articles written on these topics of interest. The Internet offers the marketer something that few other media do — the ability to track, in real-time, consumer responsiveness and to request their permission to market to them in the future. Make sure you take advantage of the real benefits that technology affords.

Myth #9

Having a Web site is good enough

If you use the Web at all, you know that it’s filled with garbage. Having a poorly executed Web site can do more harm than good. It’s essential that your Web site be up-to-date, easy to use, and aligned with your business objectives. Smart companies use every opportunity they can to drive consumers to their Web sites. If your site does not deliver on the promises made by your marketing messages, you will do nothing but irritate your customers. Having a Web site just isn’t enough anymore. You need an effective Web site to play in today’s market.

Myth #10

Results need to occur at Internet speed

Even in the best of times, management is quick to pull a marketing campaign when early results are shaky. Take Internet time, couple it with tougher economic times, and you have a real problem. Just because you can track responses in real-time doesn’t mean that you’ll produce results in real-time. It means that you can carefully monitor a campaign and quickly make changes to improve its effectiveness. But just like any other form of marketing, it takes time to turn a total stranger into a loyal customer. Be smart, but be patient.

 

Amy Harcourt is the owner of Definitive Marketing, a firm specializing in strategic Internet marketing. Amy can be reached at amy@definitivemarketing.com or 734.320.1054. For more information on Definitive Marketing, visit www.definitivemarketing.com.