The Rise of Alternative Marketing

The continued fragmentation of the media industry and rapid increase in the types of vehicles consulted for information are making it increasingly difficult for companies to connect with their customers. With the waning of print media and the weakening impact of television advertisement, alternative marketing vehicles are rising in popularity. Alternative marketing, also known as word-of-mouth or guerrilla marketing, among other names, uses innovative approaches to reach consumers with creative tactics.

While advertising budgets as a whole are growing, money is pouring out of traditional media, according to a recent NY Times article. The article cites figures from Advertising Age and TNS Media stating that the 25 companies that spent the most on advertising over the last five years cut their spending last year in traditional media by about $767 million.

Nike is one example of a company looking to connect with customers on a new level. According to Advertising Age, the company is spending 55 percent less on traditional media than it did 10 years ago, with just 33 percent of its U.S. ad budget allocated there.

The Nike+ initiative is one successful example of the company’s alternative marketing tactics. Runners all over the world log onto Nike’s website, where they can upload data about their runs collected with their iPods and Nike+ sensor in their running shoes. Each time runners log on, they are exposed to the Nike swoosh and other Nike advertising. Customers typically consult the site three or more times each week.

In this evolving media landscape, corporations must continue to seek new ways to create a true dialogue with their customers in order to build loyalty relationships, online communities and strong customer relationships..

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