Still using the same marketing tactics you were using five years ago? Those won't work with today's shifting dem-ographics and preferences. The U.S. population is older, more multicultural, more time-pressed and more jaded toward overt sales pitches than ever before. And your marketing strategy should be built accordingly.
So what's working? After consulting over a dozen experts in the field, we've uncovered the following hot trends in marketing.
Market on the Move:
According to the Mobile Marketing Association, by 2008, 89 percent of brands will use text and multimedia messaging to reach their audiences, with nearly one-third planning to spend more than 10 percent of their marketing budgets on advertising in the medium. As phones with video capability become more prevalent, expect more rich media marketing options. Plus, now that mobile phone service providers are dipping their toes into the credit card pool--soon your phone or PDA may make plastic obsolete--customers will be relying on these devices more than ever.
"There are some low-cost mobile marketing onramps for small businesses," says Kim Bayne, author of Marketing Without Wires. "Businesses can implement opt-in text messaging services and coupons with their loyal customers. We've already seen local restaurants send the day's specials to nearby lunch patrons. The cost is fairly low, and it can be done from a PC, without involving a pricey service provider."
"Think globally, act locally" is now the mantra for entrepreneurs advertising online. Online ad spending is up as much as 33 percent over last year, says David J. Moore, chairman and CEO of digital marketing firm 24/7 Real Media Inc. in New York City. Earlier this year, Google announced a new local advertising program linked to its map service and AdWords program, allowing businesses to drive some of Google's traffic to their brick-and-mortar locations.
"[Entrepreneurs] should pay attention to any targeting that allows them to increase advertising efficiency by reaching users in their particular geographic area," says Moore. Online ads are also migrating to podcasts and blogs, where advertisers can reach very specific niche audiences. And with increased access to broadband and the falling cost of video production, Moore foresees a rise in online video ads for businesses as well.
Court the Boom:
A baby boomer turns 50 every 7 seconds--joining a population segment that will grow by 25 percent in the next decade while other segments remain flat.
Matt Thornhill, founder of consulting firm The Boomer Project, which helps businesses reach adults born between 1946 and 1964, says it's time for marketers to recalibrate their thinking about marketing to older adults. Boomers are a dynamic group that's much more open to new experiences and brands than previous generations of older adults have been. Stephanie Lakhani found that to be true at her upscale Breathe Wellness Spasin Boise, Idaho. Catering primarily to boomers, the two spas bring in about $1.2 million per year. She says boomers are an excellent target, with disposable income and a tendency to refer business. "They expect perfect service," says Lakhani, 35, who adds, "They tend to travel and buy in groups, so giving them an incentive to refer a friend in the form of an upgrade or a thank you [gesture] works very well. They are also very responsive to direct mail."
Thornhill adds that marketers should target boomers by what they're doing instead of how old they are. "Boomers are living such cyclical lives. In their 40s or 50s, they could be going back to college, be empty nesters or be married a second time and raising a young family," he explains. "You wouldn't sell the same vacation package to all these people. So pick the lifestyle segment you're targeting, and focus on that."