Shift Dollars to Digital?

Before we begin, let's put aside the argument about the merits of brands cutting their marketing budget in our current economic climate. This argument is already going on in every industry rag, news program, etc. We don't need to hash it out here. Agreed? Plus, this is not about cutting, rather shifting budgets to help bolster the bottom line. Now, doesn't that feel better?

AdAge recently reported that "Marriott Mobile generated $2 million in gross revenue between its August 2008 launch and the end of the year." and "Hilton's mobile channel has generated a 22% return on investment for the brand."

Wow, this news has me excited! But, what surprises me even more is the fact that these brands have not placed much, if any, focus on promoting their mobile websites. So, why/how are consumers finding and using them? One word.... Convenience. Obviously, these brands saw an opportunity and invested in a mobile site knowing that there was an opportunity with stranded travelers looking to easily book a hotel room once their flight was delayed. For other brands, it's a different story. But, it does prove the point that investing in emerging media can really pay off.

For me, this all points to the need for brands to focus portions of their budgets on emerging media, which can mean different things to different people. If there is an opportunity, it's time to take a risk and try something new. And, Chris LaRose from Hilton agrees. "We're seeing in general is a shift to ... digital across the board. The rate of return that we're seeing in online campaigns is much more favorable than what we've seen historically in print."

Before you jump to conclusions, I am not advocating that brands stop spending on traditional forms of communication (TV, Print, OOH, etc). But, I am saying that brands need to continue, or begin, looking at other mediums that can be accountable and produce the type of ROI that is needed during these tough times. For some, this may be mobile; for others is may be email marketing, display, SEM, SEO, etc.

Where is the opportunity for your brand?

- Chris