30% of the Surveyed Businesses Allot More than 75% of their Marketing Budget for Digital Advertising: GoodFirms

82.9% of businesses indicated tremendous competition as a major drawback of digital advertising.

GoodFirms, a universally renowned B2B ratings and reviews platform, released its recent survey research report, “Traditional Advertising Vs. Digital Advertising.” The survey aims to share the benefits and drawbacks of traditional and digital advertising and gather data on current marketing trends, interests, methods, and outcomes.

According to the GoodFirms survey, 64.9% of businesses use digital advertising to promote their products, while 2.7% rely only on traditional advertising, and 32% of the respondents use both equally.

Regarding the budget allocation, GoodFirms survey was able to understand that 59.9% of the businesses allotted less than 25% of their marketing budget for traditional advertising, whereas 33.8% of the businesses allotted 51% to 75% of the budget for digital advertising.

Analyzing the benefits of traditional advertising even today, several businesses still believe that it helps them boost business credibility, enables easy targeting of local audiences, is highly engaging, and helps them easily enhance brand awareness.

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The research also highlights the drawbacks of traditional advertising that  include difficulty targeting and segmenting the audience, higher costs, time consuming, difficulty measuring, and communicating mass information.

Although a small percentage of businesses still rely on traditional advertising, the majority of them are favoring digital advertising due to the fact that  through this method it is easier for businesses to reach their audience globally in real time, enhanced visibility, improved customer base, precise targeting, etc.

Tremendous competition, rapidly changing trends, difficulty in hiring the right talent, security threats, dependency on technology, consumer reactance due to more data gathering, and negative feedback are the few drawbacks of digital advertising.

Further, the GoodFirms survey unveiled the trends in digital advertising that will dominate in the future, such as Hyper-personalization, Increased use of AI, Augmented Reality and Virtual Reality, Data Privacy and Security, and Programmatic Buying for Display Advertising.

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Both traditional advertising and digital advertising have their own advantages and drawbacks. When used together, it can prove more beneficial for the business. Interestingly, most of the survey participants agreed with this statement. But, undoubtedly, AI is going to hold a stronger position in the future of programmatic advertising, concludes GoodFirms.

About the Research:

GoodFirms Survey—” Traditional Advertising Vs. Digital Advertising” queried 760 businesses (national and international) about their adoption of advertising methods and their benefits and drawbacks.

Key Findings:

• 66.5% of businesses are willing to increase their investment in digital advertising.
• 45.7% of respondents mentioned that telephone advertising is still effective for their business, while newspaper advertising is significant for around 38.9% of the survey participants.
• 87.4% of the survey respondents said that traditional advertising makes it difficult to target and segment the audience.
• Traditional advertising costs are higher, according to 79.3% of the surveyed businesses.
• 94.5% of the survey participants opt for social media ads to promote their products.
• According to 78.5% of the surveyed businesses, rapidly changing trends are a drawback of digital advertising.