Why Marketers are Returning to Traditional Advertising in 2023

In a very recent article in the Harvard Business Review Special Issue, evidence suggests a shift toward increased spending in traditional marketing and advertising spending is underway. Consumer facing companies are leading the shift, with B2C service companies predicting the largest increase in traditional advertising spending (+10.2%). Further and somewhat ironically, companies that earn 100% of their sales through the internet are leading this inflection — predicting an 11.7% increase in traditional advertising over the next 12 months.

So, why is traditional advertising on the rise? Here are some of the drivers behind the shift.

1. Breaking through the digital clutter.

As consumers are spending most of their waking hours online, they are becoming increasingly numb to digital advertising and engagement. Marketers are looking for ways to cut through the noise. Traditional media platforms like TV, radio and print are experiencing an increase in engagement and are outperforming digital channels in terms of reach, attention and engagement relative to cost. This differential is amplified as the cost of online advertising has increased. It simply makes good economic sense to rebalance spending away from digital clutter.

2. Capitalizing on consumer’s trust in traditional advertising.

A MarketingSherpa survey found that the top five most trusted advertising formats are all traditional —with customers trusting most print advertising (82%), television (80%) direct mail (76%) and radio (71%) to make purchasing decisions.

3. Preparing for the decline of third-party cookies.

With Google phasing out the third-party cookie on Chrome browsers by last 2023 and Apple implementing changes to it iOS14 operating system, the death of third-party cookies is imminent.

4. Fine-tuning brand and market lift.

Marketing is an art and a science. This means that sometimes traditional media is perfect for some brands, markets and messages. Traditional media offer an ideal platform for storytelling.

5. Revisiting digital effectiveness.

The CMO Survey showed that 54.8% of marketers track digital marketing performance in real time, with an additional 35.2% doing so quarterly or weekly. At the same time, marketers are also becoming skeptical of the hyped returns of digital media, because the platforms control both the advertising inventory and its effectiveness measurement. This has raised credibility concerns that digital advertising may be far less effective than reported. The advantages of digital media can be a double-edged sword, and marketers are becoming more cautious about blindly embracing it.

The article concludes that traditional advertising is alive and well. When used together, traditional and digital marketing can reach more audiences, build and keep trust and motivate buying from consumers who might tune out marketing messages.

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Other Marketing Tips for Small, Local Businesses in 2023:

1. Partnering with trusted media partners who have a built-in targeted audience is a MUST for local businesses.
2. Hold your customer’s attention; just don’t grab it. Refrain from falling victim to what experts call a “random marketing mindset.” Build a continuous connection and compelling experience with your customers to build trust, awareness and your customer base.
3. Promotional pricing trains consumers to buy on “sale”. This tactic runs the risk of being easily replaced by the next cheapest option. Alternatively, an engagement-first approach provokes emotion and an affinity with your brand. Resulting in stronger brand-consumer relationships.

Photo by Joshua Earle on Unsplash