Are you spending more than you think you should on your ads? Maximizing the return on your marketing investment is vital for your company. As we venture further into the digital age, we also dive deeper into digital-based advertisements. This can range anywhere from social media advertisements to streaming platform ads and more. In 2021, over 500 million US dollars was spent worldwide on advertising, and spending is projected to reach over 800 billion dollars by 2026. Unfortunately, a considerable amount of money spent on digital ads goes to waste. Even if you have an optimized budget, identifying the exact cause of your campaign’s failure can be a daunting and time-consuming task.
So…What is Ad Waste?
Ad waste is when your advertising campaign fails to meet its goal. The typical ratio for a campaign is 5:1. This means that you make $5 for every $1 spent. If your company’s ratio falls below 2:1, it’s not considered profitable due to the high costs of producing and distributing goods/services.
As a result, the spend and returns usually break even.
At MK Marketing, we strive to help companies not only build their brand but also minimize ad waste. In this article, we are going to discuss 5 common causes of ad wastes and 5 techniques your business can use to maximize the return on your marketing.
5 Common Causes of Ad Waste
Ineffective Ad Copy
Copy is key, but when you have an ad that fails to connect to the audience you are targeting, your ad will not convert. A clear and concise call to action is necessary as well as stating the benefits your product or service offers. Your ad copy should also match the keywords you are targeting, or your ad quality will drop and campaign costs can rise, too.
Poor Target Market
Know your audience. Know who you are selling to. Not everyone in the same demographic wants what you have. Google Trends is a great source to help pin-point regions to target-market while Statista is another site that can help you determine the age group you want to target. If your ad is too broad, platform administrators can choose to ignore or even block your ad. Rather than flushing your money down the drain, time spent researching your audience is an investment in itself.
Poor Landing Page
Your landing page matters.Your ad can be a 10, but if your landing page is a 1, people will quickly bounce off your site, causing you to lose money and potential customers. Your landing page should not only reflect the personality of your brand, but it should offer a solution to your audience’s pain point. It should also be easy to navigate as well as entice users to subscribe.
Running misleading or false advertisements can be a costly mistake that puts your entire business at risk of a lawsuit. Building consumer trust is the key to success and brand loyalty, resulting in increased spending. Studies show that seventy-one percent of customers will not do business with a brand that loses their trust. Therefore, it is crucial to ensure that your advertisements are truthful and honest to maintain your brand’s credibility.
Wrong Platform or Placement
Choosing the wrong advertising platform is equivalent to inviting failure and losing potential sales. Your copy won’t deliver if you’re trying to sell candy in a health and wellness magazine, nor would a digital ad do well if it’s blurry or indecipherable.
Placement matters, too. The way you place your copy, and where, matters to your audience more than you may think. Below is a billboard placed in the wrong location.
5 Ways To Maximize Ad Spending
The world of consumers is ever-changing, and your brand is more than just a name or a logo. It’s a culmination of various factors that shape the way people perceive your business. By creating a reliable and robust brand, you can differentiate your business from others and establish a long-lasting relationship with your customers.
Analyzing your data allows you to track your ad campaign in real time. You can track the demographics and identify the patterns in your audience. With these insights, you can better optimize your marketing strategy and adjust accordingly.
Target a Specific Audience
Marketing your ad to a broad audience can lead to your business being overlooked, as a diluted message may not resonate with everyone. To maximize the return on your ad spend, you need a target audience. If you run a lawn service, chances are your audience is going to be different than a candy company’s. Focusing on your target audience allows you to tailor your message to their needs rather than trying to reach out to everyone. Pleasing everyone pleases no one.
Run a Split Test
Better known as an A/B test, you can run a split test to maximize the return on your ad spend. Rather than increasing your ad spend to reach more people, split your audience and send out two variations of your ad. The ad that best resonates can be used to either retarget or implemented into your website (i.e. CTA copy or color). This data can help you maximize your ROI and increase your bottom line.
Hire a Marketing Agency
In today’s fast-paced business landscape, it is essential to optimize your marketing efforts to stay ahead of the competition. Instead of relying on one person in your office to handle all the marketing responsibilities, you can collaborate with a marketing agency. By working with a marketing agency, you can leverage a team of experts who bring a diverse range of skills and experience to the table. This can help you to set your business apart from the competition, enhance your brand image, and create a lasting connection with your customers.
🦋At MK Marketing, we are committed to providing personalized service to every client we work with. We take the time to understand each client’s unique needs and goals. We collaborate closely with our clients to develop customized marketing strategies that can help them achieve business growth.