Friday, February 05, 2021

Should We Be Spending So Much on Digital Advertising?

We’ve seen just how much money is being dumped into the digital marketing channels over the last several years, and the chart below doesn’t predict a slow down any time soon. A recent article, Why SMEs Do Better Digital Marketing Than The Biggest Brands” from Forbes discusses how most digital media spend is wasted and argues that some businesses could reduce their spend by 90% and still see the same results. They argue that while reducing spend 90% might decrease your traffic, it won’t decrease your actual sales. Do you think we’re spending too much on audiences that will never convert? 



“Remember that small business that reduced the number of ad impressions they bought on Facebook by 90%? The clicks to their website also dropped by that amount. But their sales went back up. That’s because 90% of their ads were shown on longtail sites and apps outside of Facebook (on Facebook Audience Network - “FAN”) and the vast majority of clicks never even arrived on the website — the discrepancy between Facebook reported clicks and Google Analytics pageviews was 90%. That discrepancy vanished when the small business owner turned off FAN. So why buy such large numbers of impressions, and get large numbers of clicks, when those are not real customers anyway? Smaller numbers led to better outcomes in this case.”


https://www.forbes.com/sites/augustinefou/2021/01/13/why-smes-do-better-digital-marketing-than-the-biggest-brands/?sh=78c9629329d6

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