Brandweek's provocative headline "Marketing on No Money" (Oct 12 2009 issue) makes the argument that social media and web 2.5 tools are enabling companies to get their "marketing costs down to zero".
It's an interesting look at the mathematics of marketing, but equates advertising to marketing, and while that makes for great headlines, it's not just fuzzy math, it's wrong.
The article profiles Mint, a personal finance site that was just purchased by Quicken for $170 million. "Marketing on $700 a Year" leads the article in 30-point type.
If a brand manager reads no further, that's the number that sticks in the brain and that becomes the war cry: $700! Brandweek says why spend more?
The trouble is, the actual cost is closer to $1 million dollars a year: a $700 advertising spend and the true cost of creating and running an effective marketing campaign are far apart - in this case, $999,300.
What do you get for your million bucks? Buried in the article is the answer: "Salaries for marketing staff and out-of-pocket expenses like hiring an outside PR firm."
So you still have to pay for people to determine strategy, define the right mix of social media tools, write the blogs, post tweets, maintain Facebook pages and monitor the results.
In other words, the tools might be cheap but you still have to do the actual work.
Let's recap: it cost Mint $999,300 a year to create and manage a successful marketing campaign that had $700 in hard costs for off-the shelf services. And that's really different than 'no money'.
"Marketing on $1 million a Year" doesn't make a sexy headline, no matter how true it is, but still - some clients are going to expect million dollar results for $700.
So thanks for nothing Brandweek - you've armed the masses with mis-information and devalued the contribution of the bright minds that develop campaigns, create the imagery, wordsmith the blogs, program the widgets, respond to consumer emails and make the YouTube videos. Nice work.
Read the article here:
http://bit.ly/ygrlH
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