Publicity is essential for any brand to become successful. Without enough exposure, it is not possible to spread awareness of a product or service. Any kind of publicity costs money and this has to be added to the cost of the product. For companies to be competitive in the market they must price their products on par with others. This is why organizations are looking at ways to reduce marketing costs.
Impact Of Advertising Cost On Product Price
It may be argued that dooh and OOH advertising can greatly reduce the cost of the product because ads improve demand and contribute to economies of scale. But companies don’t always take this assurance for granted. This is why advertising costs are considered a major factor in pricing a product. It must be ensured that the cost of a product does not deter customers from buying it.
In a bid to keeping the price lower, one of the solutions that companies are looking at is to reduce advertising costs. This is especially true with new or small companies that must publicize their products but cannot afford to spend too much on marketing. The internet has come as a boon to these companies because online marketing comes at a much lower cost.
Why Is Digital Marketing Economical?
There is increased use of the internet for making purchase decisions. More and more customers research a product on the internet before they buy it. Pay-per-click ads are economical because you only pay for those customers who visit your website through these ads. This means that whatever you spent on ads is surely resulting in reaching your target audience. Such effectiveness cannot be expected from other means of marketing.
Reduced Cost Of Customer Acquisition
Reaching out to customers in traditional marketing methods can be expensive. Digital marketing offers you free marketing opportunities. You can use the company e-mail account to send emails to prospective customers. Social media accounts can be used to communicate with the target audience and get them to convert. These methods cost the company close to nothing. As these campaigns are highly focused no effort is wasted.
Pros And Cons Of Digital Marketing
- Global Reach – You can practically reach customers in any corner of the world with the same marketing cost.
- Easy Personalization – It is easy to know the customer profile and customize your campaign to suit their requirements.
- Measurable Results – Digital marketing has tools to measure the results of your efforts and make changes if necessary.
- Time-Consuming – Optimising your online marketing and creating content that is suitable for your target audience can be time-consuming
- Up Against Global Players – The online market is open for anybody and it could be difficult grabbing the attention of customers among so many competitors.
- Negative Feedback – Being on a public platform can target your brand for negative feedback and responding to it can be a challenge.
It cannot be denied that digital marketing is much more economical than offline advertisements. But, for most products, online advertisement alone may not be sufficient to get quick results.