Outbound marketing: definition, advantages, and difference with inbound marketing |
Outbound marketing: a brief definition
Outbound marketing is often considered the traditional form of advertising. With outbound marketing, the advertising agency addresses the target group directly and sends them an advertising message. The difference compared to inbound marketing, and inbound marketing lies in the direction of the communication of the first contact.
Detailed definition:
The decisive contrast between inbound marketing and outbound marketing is the way the relationship between the customer and the company is established:
- In inbound marketing, customers come to the company themselves. The customer is looking for specific information and the company provides that information.
- In outbound marketing, the company addresses customers directly.
Typical outbound measures are confrontational advertising methods. Potential customers are contacted directly, for example through:
- Promotional emails
- Sending postal mail
- Telephone prospecting
- Advertising posters
- Advertising in print, television, radio, and online
- Sponsorship
Why use outbound marketing?
Outbound marketing as traditional marketing has apparently lost importance lately. The ROI – return on investment – of outbound metrics is difficult to measure due to their high reach and associated waste. The costs, therefore, tend to be higher than for inbound measurements. Spam blockers, adblockers, and filters set limits on the effectiveness of direct advertising, especially with traditional web marketing methods.
To generate leads, companies, therefore, offer more and more information that potential customers can find. They increasingly rely on inbound marketing and use software such as Hubspot and the possibilities of social media and SEO.
However, the obvious advantage of outbound marketing is its broad reach. This advantage is of course associated with high waste: thus men are inevitably confronted with advertising for “typical” women's products. But to spread awareness of a brand's new design – online and offline, via social media or television – classic, confrontational advertising is still necessary. Smart advertising strategies rely on a smart combination of the two marketing strategies, outbound and inbound.
The pros and cons of outbound marketing
Many channels play a role in outbound marketing: advertisements in the print media, but also in online advertising, television advertising, and mass e-mails. SEO (Search Engine Optimization ) tends to be less important for direct online advertising. Ad reach still depends on the chosen medium but is usually much higher than with the corresponding inbound metrics.
The positive aspects of marketing are always associated with risks. It is therefore important to be sensitive when choosing and applying advertising methods.
Advantage | Inconvenience |
Large reach | High scattering losses |
Presence builds brand awareness | Intrusive advertising damages brand reputation |
Suitable for print media, TV, radio | Less suitable for social media |
Outbound marketing vs inbound marketing
Inbound marketing depends on the product found by the customer. Search engine optimization (SEO) is indispensable for the target group to find the product – at least in the online sector. The three keywords of inbound marketing are, therefore: content, SEO, and social media. The inbound strategy is based on online content that is sought by customers, for example on social media portals or via Google. SEO is essential for the information to be found in the SERPs of Google or other search engines.
Even today, companies rely on classic advertising measures that have proven themselves over many years. Outbound marketing and inbound marketing are not mutually exclusive. Many companies instead try to combine old and new marketing strategies to actively win new customers or build customer loyalty with a well-thought-out CRM (Customer Relationship Management).
Inbound marketing benefits from digital developments. There are new advertising methods on the Internet that go beyond the traditional possibilities of outbound marketing. But even in online advertising, direct customer language is inexpensive and success can be measured.
An example :
- Newspaper advertising is associated with high costs. These costs depend, among other things, on the circulation of the newspaper. It is not certain that so many copies will actually be sold. And not all newspaper buyers see the ad.
- Online advertising, on the other hand, can be placed exactly – even on social media. Targeting, for example, is based on people who have already shown interest in a given item. While surfing, these people are always shown a specific item.
Use organic reach, minimize broadcast losses
To minimize outbound marketing waste, local SEO is the ideal solution for online marketing. In traditional advertising, local businesses may also limit cinema advertising to local movie theaters. The same goes for radio and TV ads. This method is particularly suitable for small and medium-sized businesses with relatively small advertising budgets.
The best results in marketing are achieved by combining different channels.
It's possible,
- if, on the one hand, the large reach of the media is used to generate interest in a product,
- and with effective online tools for customers. These tools allow you to get to know the product better.
Selecting the most promising channels for classic advertising placement is also important for the success of outbound marketing:
- TV commercials are shown in programs aimed at specific age groups.
- Internet advertisements appear on blogs relevant to target groups.
- Advertising e-mails are addressed to specific groups of customers.
- Direct mail is distributed regionally.
Classic methods of outbound marketing
One of the advantages of traditional advertising methods (flyers, regional direct mail, or targeted emails) is also their openness. The message is clearly marked as an advertising message. The recipient knows where he is and decides whether the product is relevant to him or not. With outbound marketing, this reaction is usually not visible to other customers. Thus, negative reactions, for example in social media forums, can prevent reputational damage from the outset.
Mass emails are a very inexpensive method of outbound marketing that is generally viewed negatively. They often end up in the customer's spam folder and are usually unopened. To have a chance of attracting attention, topic phrasing is essential.
Telemarketing also has many disadvantages. This type of advertising is restricted by law. There is a danger here for the advertiser to pay penalties in the event of an infringement. Furthermore, telephone marketing, in particular, regularly encounters defensive reactions from customers.
The benefits of outbound marketing are particularly evident in the B2B (business to business) sector. It is precisely here that the information finds potential interest if the target group is selected precisely by a company. When a customer responds to a B2B request, inbound marketing basically begins. Outbound marketing can thus become the trigger for inbound marketing. Particularly in the case of prospecting, the number of cancellations can be reduced thanks to the systematic observation of the competition and professional CRM.
Conclusion
Outbound marketing is still an advertising method that has great importance. Social media and natural SEO techniques haven't really changed everything. Above all, many outbound methods are still suitable for creating brand awareness. Because the notoriety of a brand presupposes a presence in the public, even if the recipient is not specifically looking for it.
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