I read a news article recently that talked about how Proctor & Gamble laid off 1,600 employees and how they were shifting their marketing from traditional approach to more inbound marketing.
Proctor & Gamble’s main justification was their 24% increase of their advertising budget, resulting in P&G spending over $10 billion a year in advertising. In P&G spending $10 billion a year in advertising, they only saw a 9% increase in sales.
WHY ARE BIG BUSINESSES JUST NOW UNDERSTANDING THE POWER OF INBOUND MARKETING?
It is not that they have not understood inbound marketing. Big business has always understood the power of online marketing and the branding capability of social media. They have also been stuck in the same repeating circle of their competitors. When Coke and Pepsi go head to head in their commercials, they are followed and viewed because of the brand loyalty of their consumers. That fact justifies the over the top expense of advertising budgets.
SO WHY SHOULD SMALL BUSINESS PAY ATTENTION TO P&G’S DECISION TO INCORPORATE MORE INBOUND MARKETING PHILOSOPHIES?
Inbound marketing on average costs about 1/3 less to generate a lead than traditional marketing tactics. So if you spend $100 in traditional marketing to generate a lead, you will spend $66 with inbound marketing to generate that same lead. In the large scale application of Proctor & Gamble, that is $3 billion that can be applied to the bottom line to generate additional sales.
Too many small business owners stand pat in their marketing, afraid to try something new or spend money in a slow economy. Businesses that get on board with the future of inbound marketing will benefit exponentially above those who wait to join the inbound marketing train later.
Are you looking for the edge over your competitors? Is your advertising budget tapped out and not generating the ROI you want? Contact JASE today and let us show you how inbound marketing can work wonders for your business. As always, please feel free to share this with friends.
image credit: Elizabeth/Table4Five on flickr