“I Know Half Of My Advertising Is Wasted.”

There’s a disturbing discussion going on in the blogosphere and on social networks like Twitter and it can be summed up like this: “All of a sudden, advertising doesn’t work any more, brands are dead, the consumer is now completely in control and social media is the silver bullet that can save your destination from ruin.” Complete and utter hogwash.

Before you go gutting your advertising budget completely, consider this: In the last year, our clients saw a 5-20% increase in business, despite the recession. Did they use social media? Absolutely. Social media are new tools in the toolbox. Their websites all now have social bookmarking tools. We’ve been helping them get up to speed with blogging, YouTube, Facebook and Twitter for the better part of two years. In 2010, you’ll see them doing even more of this.

But did social media drive their increased business? Not yet. Without exception, the jump in attendance, heads in beds and revenue our clients experienced can be traced back to advertising. Good, old advertising — not social networking. The consumers who came, came from those markets where and when we placed advertising. We have the numbers to prove it. The markets where we relied solely on social networking drew significantly less people than in previous years.

The problem with advertising

Bad, misplaced advertising still doesn’t work. Good, well-placed advertising still works. Twenty five years ago, it was estimated that 85% of all advertising was not seen or was ignored by the intended audience. Today, that percentage is likely higher. The problem with advertising today is that there is more bad, misplaced advertising than ever. And the consumer is simply not buying the B.S. or willing to be interrupted with irrelevant messages anymore.

The media mix has also changed

Consumers are consuming media differently. They are using the internet more than ever to research and plan travel. They are smarter than ever, better informed and willing to share their opinion with their social networks. But are they willing to develop a deeper and more meaningful relationship with a brand now that social media is here? I think not. Will they play a game or click on a relevant, well-timed ad on Facebook? In our experience, yes. But have a “relationship” with your brand? Please.

2009 was a year to be even more creative and surgical in choosing where advertising is placed. In past years, a typical plan may have included some mass media print and outdoor, a lot of broadcast television, and direct mail. Today, it’s essential to map the audience and use narrowly targeted advertising media such as cable, cinema, video-on-demand, online media networks, mobile networks, Facebook and Google Adwords, email marketing, direct mail and others to reach them. Instead of a single message for all audiences, advertisements should now be customized to carry messages that are on brand, but that speak to the drivers of each audience segment.