UNDERSTAND THE CONCEPT OF ADVERTISING FIRST
Advertising is an accelerator to something that already exists but can't create success from anything; therefore, you need to understand this straightforward concept to ensure you get all the money.
My purpose with this blog is to help you understand how ads work and what you should focus on to help you expand your business in the online world. If you need to contact me to help you scale your business, please do so here. Now, let's continue.
What advertising can't do is take a new offer, a new idea, a new product, or a new service that hasn't yet been proven and magically make it sell. However, advertising can help you get something that you already have that is selling well in front of even more people, just like your best customers. Are you starting to see the picture?
Yes, if you introduce a new product to the market, it can sell out straight away. These are the stories that all advertising experts want to scream from the rooftops or maybe on other YouTube channels.
You hear things like how The money dude sold out in 24 hours because of a straightforward ad he wrote in a couple of minutes from his parent's basement or how Katy Bank made a million dollars from his first launch.
These things do happen, don't get me wrong, but they are the exception, a once-in-a-million gamble rather than the rule. The truth is that marketing is more technical, and your ability to succeed with ads and make big money depends on only a few straightforward variables, which I'll explore in just a moment.
Unfortunately, most people are unaware of these facts or disregard them entirely. They then start pouring money into ad platforms hoping that something will magically click.
Yes, some dude from a crazy place may buy what you're selling, but if you spent $200 to get $70 back in my book, that's a loss.
The odds are not in your favor, especially if you are new to online advertising, and that is not marketing; that is gambling.
Let me now explain how things operate. The majority of online advertising is auction-based, and three factors determine the ad auction's winner:
BID
It is the amount the marketer is prepared to spend to get the desired result. The more you are willing to pay because you are convinced that you will recover your costs, the better chances you have of reaching audiences by taking it from the competition.
AVERAGE ACTION RATES
This predicts how likely someone who views the advertisement will respond to it. In other words, this is the ad platform ensuring that you are reaching the appropriate audience, preventing them from blocking or unfollowing you, or, even worse, leaving the platform altogether.
QUALITY AD
measures several quality factors based on algorithms to display the best ads, such as feedback from users who watch or hide the advertisement.
The winner is determined by adding the three scores together and determining which has the highest overall score. This is why you need to invest enough money to outbid your rivals if you want your adverts to be effective. It takes time to build ad credibility. If you don't have that kind of budget, don't even spend it.
To develop a highly focused market and have a relevant ad that talks directly to your ideal customer, you must also ensure an adequate budget to give your advertising enough time to optimize and work out any glitches.
Finally, ensure your advertisement is intriguing, captivating, and worthwhile to the user.
Make sure you are familiar with your numbers, such as your customer lifetime value (CLV), which will demonstrate the lifetime value of a customer to your company.
While getting all of these things right is possible, even if you've heard of clv before, it's also more complex than you may have been led to believe, especially today, when advertising costs have increased significantly.
Keep CLV in mind because this system will allow you to determine what you can and cannot afford to spend on ads. Now, let's talk about cookies.
Spending On Ads & Retargeting
Retargeting cookies and tracking have become increasingly difficult to use. Still, competition is at an all-time high, and plenty of individuals are prepared to participate and pay whatever the ad platforms ask.
In fact, if it's any indication of how much consumers are spending on advertisements, Facebook made 114.93 billion on advertising last year, Google made 209.49 billion on advertising, Amazon made 31.16 billion on advertising alone, and even tick tocks expects its ad revenue to triple this year to 11.64 billion.
So what do you need to do? What is the alternative if you want to expand your clientele, increase sales, and expand your company? The answer, my friend, is to employ a combination strategy known as PESO, which stands for:
P-AID
E-ARNED
S-HARED
O-WNED
So let me now explain those to you.
Any form of media that costs money is considered paid media, so consider banner ads, display ads, social media ads, and anything else that contains the term "ad."
Advertising will always be there in the marketing world in some shape or form, and it's a fantastic method to expand your reach and expose your brand to new audiences just by purchasing advertisements.
Some drawbacks include that when you stop paying for ads, search engines will stop showing them, so you must continue running your ads to maintain constant traffic. Additionally, as we've seen, it's becoming more expensive to continue using major players like Facebook and Instagram due to increased competition. Earned media comes next.
Relationships, word-of-mouth, and your network make up earned media. This is where having a good product or service, cultivating a solid customer base, and investing in your brand can pay off handsomely. However, because it's challenging to implement and measure, many digital marketers ignore it. Don't be one of them.
If your entire business depends on shared media, such as through one social media platform, it takes a few tweaks and changes to the algorithm to wipe you out completely.
Shared media is organic social media and any partnerships or communities you have. Shared media is valuable, but it's also a little sketchy and similar to building your house on rented land.
Owned media should therefore be your next task.
Owned media are those over which you have total authority. These include your website, podcast, and email list, among other things.
For example, this blog represents my attempt to build up my media as quickly and effectively as possible with all of my marketing, whether for my clients or me.
The key marketing approach I've been utilizing and recommending is content marketing, which is the one thing that all of these subjects have in common.
I'm looking for content marketing that I can utilize for sharing on social media, interviews, other public relations chances, and content that can obtain natural backlinks.
Owned media since I can publish my content on my website and email list and share it with the general public.
Yes, paid media is finally necessary since, after developing material for my website, social media accounts, podcasts, videos, and other platforms, you have a decent sense of what will resonate with your audience and what won't.
It turns advertising from a risky business decision into a measured, strategic approach. Likely to produce a real return on investment. In other words, your money on advertising will positively impact you if done correctly.
The key is to create content your audience will find valuable, use it across earned, shared, and owned media, and then pick the best of those to convert into paid media like advertisements.
Ensuring you have a strong content marketing strategy is the best thing you can do to boost your content. So, to help understand everything mentioned in this blog better, your business has a process, and paying ads is not the first step; hopefully, this blog can help you out.
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