- In order to determine the best marketing strategy for your business in 2017, you need to truly understand both types.
- What is the Difference?
Outbound marketing is considered the more classic form of marketing. It is dependent on a sort of in-your-face type of marketing. This is typically done by billboards, television, or printed advertisement. Outbound marketing has been around for a long time and out dates the formation of the USA. It is considered “interrupted marketing.” Inbound marketing is considered“permission marketing.” Inbound marketing uses social media, blogging and paid advertisement. It is a much more focused marketing.
- Outbound History
- Way back in 1704, the first newspaper advertisement was made in the Boston News-Letter. There was an ad for an estate for sale in Oyster Bay, Long Island. The first billboard that was leased was in 1867. AT&T released the first radio advertisement in 1922. Then came the first TV ad in 1941 which reportedly cost $9. Now an ad that last 30 seconds cost $5 Million--what a change!
Outbound marketing has some disadvantages over inbound. The first thing it lacks is personalization. Nowadays, people are using social media more and more to connect and find information, which makes it hard for less personable marketing such as outbound. Secondly, it is a shotgun approach. It is thrown out there for all to see even though most will not be interested in the product or service. Last but not least, it is very expensive. Outbound marketing usually costs 61% more than inbound marketing.
- Increased Demand for Inbound Marketing
Inbound marketing is becoming more and more popular. The reason is because it is more focused on people who will likely be interested in your product or service. They came to your site or are looking on social media related to what you have to offer. You are targeting the “right people.” The rise in social media has really increased the demand for inbound marketing. People want what they want now and this allows them to search for products, services, or information instantly. One other nice thing about inbound is that you pay for those who click on your ads—i.e. people who are interested in your brand verses paying out big bucks for billboards that the majority of people who see it will not be interested.
Last but not least, the conversion rate for inbound marketing is approximately 14.6% verses outbound at 1.7%. This is a significant difference. The main difference is that those who come to your site are more likely to be interested in purchasing compared to throwing out market ads to all consumer groups. That said, there are strategies for when to air television commercials and which interstates are helpful to place billboards, depending on the type of business.
- What is Right for You?
There is not one right answer. You have to look at your business and its needs and who your customers are. There are definitely advantages to inbound marketing, but that does not mean outbound marketing does not have a future. Outbound will continue to be around and will play an important role, but inbound marketing will continue to grow and be an ever increasing force in the marketing world.