In recent months, advertising costs have experienced significant growth to the point that by investing the same amount of money, companies get half the results. In other words, right now, businesses need to double their investment in advertising to obtain the same results that they achieved a few years ago.
The main reason for this price increase is that, during the pandemic, many offline businesses were forced to make the leap to the digital world to maintain their sales. Which, in turn, made online competition between brands grow so much that, now, advertising strategies, which many companies developed before the pandemic, do not work in the same way.
Given this, brands have to manage to develop more creative advertising, which places them ahead of their competition and strategically invest in their campaigns. And this is key because we cannot forget that the future of business is on the Internet and depending on the advertising that we carry out, we will or will not be successful.
The digital transformation of businesses is one of the reasons that has led to the increase in advertising costs, but it is by no means the only one. The latest updates to Apple’s iOS system have also revolutionized the advertising sector, since one of its most important changes has been the reduction of interest in audience segmentation.
As a result of this update, quality has been lost in similar audiences, which are groups of like-minded people that are created from those who have already purchased a certain product or service, who have interacted with a specific website and its social networks, Or they just know the brand.
So, if the custom audiences are smaller because Meta is not able to collect enough data about their behavior, the quality of the lookalikes is greatly affected, and therefore the campaigns do not target as fine-tuned an audience as before. .
Another factor that has affected the increase in advertising prices is the elimination of third-party cookies announced by Google. This will make it increasingly difficult for brands and advertisers to personalize their campaigns and know where each person is in the buying process.
As a consequence of these changes in iOS and Google, the possibilities of collecting data to analyze them and make decisions for improvement are infinitely less, because by complicating the measurement of metrics, it is more difficult for advertisers to know if they are going in the right direction and if their strategies are paying off.
Another of the most important factors that affect the increase in costs is the fact that more and more advertisers are competing for people’s attention. Advertising works by bids and, if more and more companies invest in online advertising, it means that there are more brands competing for those advertising spaces. In such a way that, if the demand rises, the prices in the bids also.
Fine-tuning the audiences, calculating the budget well and distributing it in the different sets of ads in an appropriate way, designing highly impactful and eye-catching ads… are some of the elements that businesses have to take into account when developing an advertising strategy.
From now on, the copywriting and creativity of these advertising strategies will make the difference when it comes to deciding on investment, since users have become very demanding when it comes to paying attention. For this reason, we must take more care than ever of the message and its design, in addition to knowing the target audience very well.
Finally, we cannot ignore that the future of profitable brands will be in the combination of channels in a strategy. In not depending on a single advertising platform, nor a single social channel, nor a single means of attracting customers, but using several that end up coinciding in the generation of their own database.
Also Read: The Benefits Of Online Advertising