In this edition of Whiteboard Friday, Rand identifies the cycle many brands get trapped in and outlines a solution to make those paid ad campaigns worth the dollars you put behind them. This week we're chatting about the number one reason so many paid ad campaigns, especially from new companies and companies with new products or new ventures that they're going into, new markets and audiences they're addressing, fail. The marketer is like, "Okay, yeah, I'll buy some ads online, help us get the word out there and get us some traffic and conversions." "How's that paid ad campaign going?" When these are low, when you have a low engagement rate on the platform itself, when no one engages with your Facebook ads, no one engages with your Instagram ads, when no one clicks on your AdWords ad, when no one clicks on your display ads, the cost to show to more people goes up, and, as a result, these campaigns are much harder to make profitable and they're shown to far fewer people. They don't know, trust, or like you or your company product, they don't click. The solution is... You have to get known to your audience before you pour money into advertising. So television brand advertising, folks have noticed that TV brand advertising often drives the cost per click down and drives engagement and click-through rates up, because people have heard of you and they know who you are. Through these, you can get better engagement, better click-through rate, better conversion rate and drive down that cost per click and reach a broader audience. But if you don't do these things first, a lot of times these types of investments fall flat on their face, and a lot of marketers, to be honest, and agencies and consultants lose their jobs as a result.
Pouring money into a paid ad campaign that’s destined to fail isn’t a sound growth strategy. Time and again, companies breaking into online ads don’t see success due to the same issue: they aren’t known to their audiences. There’s no trust, no recognition, and so the cost per click remains high and rising.
In this edition of Whiteboard Friday, Rand identifies the cycle many brands get trapped in and outlines a solution to make those paid ad campaigns worth the dollars you put behind them.
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Howdy, Moz fans, and welcome to another edition of Whiteboard Friday. This week we’re chatting about the number one reason so many paid ad campaigns, especially from new companies and companies with new products or new ventures that they’re going into, new markets and audiences they’re addressing, fail. They just fall apart. I see this scenario play out so many times, especially in the startup and entrepreneurial world but, to be honest, across the marketing landscape.
Here’s how it usually goes. You’ve got your CEO or your CMO or your business owner and they’re like, “Hey, we have this great new product. Let’s spread the word.” So they talk to a marketer. It could be a contractor. It could be an agency. It could be someone in-house.
The marketer is like, “Okay, yeah, I’ll buy some ads online, help us get the word out there and get us some traffic and conversions.”
Then a few months later, you basically get this. “How’s that paid ad campaign going?” “Well, not so good. I have bad news.”
Almost always, this is the result of a cycle that looks like this. You have a new company’s campaign. The campaign is to sell something or get exposure for something, to try and drive visits back to a web page or a website, several pages on the site and then get conversions out of it. So you buy Facebook ads, Instagram ads, maybe LinkedIn and Twitter. You probably use the Google Display Network. You’re probably using AdWords. All of these sources are trying to drive traffic to your web page and then get a conversion that turns into money.
Now, what happens is that these get a high cost per click. They start out with a high cost per click because it’s a new campaign. So none of these platforms have experience with your campaign or your company. So you’re naturally going to get a higher-than-normal cost per click until you prove to them that you get high engagement, at which point they…