In this video, the speaker discusses the issue of wasted ad spend in digital marketing campaigns. They highlight statistics that show a significant portion of media spend is wasted and provide tips on how to eliminate this waste. The five strategies mentioned include targeting the right audience, retargeting users at different stages of the sales funnel, leveraging a cross-channel approach, using an ads grader tool for analysis, and running ads at the right time. These strategies aim to ensure that ad budgets are not wasted and maximize the visibility and effectiveness of ads.
Five ways to eliminate wasted ad spend.
You're running tons of ad campaigns,
but how many of them are actually getting you
some kind of return on your investment?
According to Next&Co digital media's waste report,
the numbers on wasted ad spend are simply staggering.
In Q1 of 2022, an average of 40% of media spend was wasted.
You're talking about billions of dollars here.
Google found that more than 56% of ad impressions
are never even seen by customers.
Proxima estimates $37 billion of worldwide marketing budgets
are being wasted on poor digital performance.
So what can you do to make sure that you stand out
from the majority of other advertisers out there?
This sounds tricky, but it's possible to make sure
that you're not just blowing all your ad budget.
Here are five ways that you can do
to eliminate wasted ad spend
and make sure your ads actually get seen.
Strategy one, this one's simple.
Target your audience effectively.
66% of customers expect companies
to understand their unique needs and expectations.
From looking at who your audience is
to doing look-a-like campaigns to uploading your email list
to letting Facebook and Google learn
based on where you're getting conversions,
this all helps you target the right people.
The last thing you want to do
is show your ad to the wrong customer.
Think about your user persona.
Who's your ideal customer?
Only show those people ads and remove everyone else.
Once your ads become more and more profitable,
and as you scale them up, then you can expand your audience.
But first, have laser focus on your ideal customer
before you go more broad.
Strategy two, retarget users
at different points and parts of your funnel.
Consumers are 70% more likely to convert
after clicking on a retargeting ad campaign.
Here's what I mean by this.
Look, if someone comes to your website,
let's say you're selling mattresses,
they add that mattress to their checkout.
They don't buy, though. You're devastated.
You show them a remarketing ad for that mattress,
so whenever they browse the web on different sites,
they see ads for, guess what,
your mattress that you're selling.
And you know what?
That ad also showcases how it's %5 or 10% off.
They click, they buy.
That's a great way to generate more sales
because you're targeting the right type of people.
If someone added something to their cart,
but they didn't convert, you know they're interested.
Or if you're in B2B,
and someone went to one of your lead form pages,
filled it out partially or all the way,
but they didn't click the submit button
because they changed their mind,
remarketing them will increase your odds of converting them.
Strategy three, leverage a cross-channel approach.
Brands using three or more channels in a campaign
enjoy a 287% higher purchase rate
than those with a single-channel campaign.
Plus, here's the beautiful part.
You can take all the learnings
that you have from one channel, like Instagram or TikTok,
and apply it to Facebook and Google, and the other channels.
That's what we do.
That's how you can run so many more ad experiments at once.
And then, figure out what's working
with your ideal audience,
and then fine-tune your campaigns
for all the other channels or platforms,
and get the most ROI.
Strategy four, use my ads grader tool.
Go to neilpatel.com/blog.
In the navigation, just click on tools.
And then I want you to click on my ads grader.
You know, go through the forms and the processes.
It's really easy, you just have to click some buttons,
and boom, you're off into the race,
and it'll analyze all that you're doing with your ads
that are right and wrong and tell you what to fix.
And best of all, it's free.
Strategy five, run ads at the right time.
An ad run at the right time can help you generate sales.
An ad run at the wrong time will just cost you money.
Let's say you're in B2B
and you're trying to get more phone calls
for your call center or your salespeople,
and you show your ads Monday through Sunday,
in essence, seven days a week.
But if your people are only there
to answer the phone calls from Monday through Friday
from 9:00 to 5:00 p.m., well, the rest of the time,
you're paying money,
and no one's there to answer the phone call.
Same with B2C.
If you're advertising for your store or your company
and you're not around 24/7,
then you're going to end up losing money.
This is what's called dayparting.
It's a simple way to save money
if your business is not operating during all times,
especially during times like the holidays
when you should be turning off your ad
if you have nothing to sell during those periods.
Now, if you need help
maximizing your return on your ad spend,
and you don't want that big wastage,
check out my ad agency, NP Digital,
where we won Paid Ad Campaign of the Year.
And if you have any questions, leave a comment below.
We're here to help.
If you enjoyed the video,
like it, share it, tell people about it.
Thank you for watching.
Running ad campaigns is an essential part of marketing, but it's crucial to ensure that your efforts are not going to waste. According to Next&Co digital media's waste report, a staggering 40% of media spend was wasted in Q1 of 2022, amounting to billions of dollars. Google also found that more than 56% of ad impressions are never seen by customers. These statistics highlight the importance of optimizing your ad spend for better results.
Understanding your audience's unique needs and expectations is vital to drive successful ad campaigns. Consider looking at your user persona and identify your ideal customer. By targeting the right people, you can avoid showing your ads to irrelevant or uninterested customers. Utilize techniques like look-a-like campaigns, uploading your email list, and leveraging Facebook and Google's conversion data to improve your targeting strategies.
Retargeting ads can significantly increase your chances of conversion. By showing relevant ads to users who have already displayed interest, you can remind them about your products or services and nudge them towards making a purchase. For example, if a customer adds an item to their cart but doesn't complete the purchase, retargeting them with an ad showcasing a discount can be highly effective in driving conversions.
Using multiple channels in your marketing campaign can lead to a 287% higher purchase rate compared to a single-channel campaign. By utilizing various channels like Instagram, TikTok, Facebook, and Google, you can experiment with different strategies and learnings. Apply successful tactics across platforms to maximize your return on investment (ROI).
Neil Patel offers a free Ads Grader tool that can analyze your ad campaigns and provide valuable insights on what is working and what needs improvement. Simply visit neilpatel.com/blog, navigate to the tools section, and click on the Ads Grader. This tool will help you identify areas where you can optimize your ads for better performance.
Timing plays a crucial role in the success of your ad campaigns. Consider the operating hours and availability of your business. Running ads when your call center or store is not open would lead to wastage of ad spend. Dayparting, which involves scheduling your ads within specific timeframes, can help you save money and ensure your ads reach the right audience when they are most likely to convert.
By implementing these strategies and optimizing your ad spend, you can stand out from your competitors and ensure better visibility and engagement for your ads. Remember, effective targeting, retargeting, cross-channel approaches, utilizing tools like the Ads Grader, and strategic timing are key elements in eliminating wasted ad spend and achieving better results from your marketing campaigns.
Create a flexible marketing plan by building a roadmap instead of a rigid plan. Focus on specific goals, prioritize marketing channels, and track tangible revenue metrics. Adapt and evolve as your business grows.
Discover the power of first-party data and machine learning in digital marketing. Identify your best customers and deliver personalized ads based on their needs and interests. Reach customers where they are in their journeys and use automation for better engagement and results.
Encourage communication between sales and marketing teams to improve lead handoff. Hold weekly meetings and use data to validate claims and drive alignment. Implement a service level agreement (SLA) to define goals and contributions. Define MQLs and SQLs based on customer behavior. Consider implementing a lead scoring system. Utilize sales and marketing software for better collaboration and prospect tracking. Aligning sales and marketing improves lead conversion and business success.
Shift marketing strategy by understanding consumer behaviors, leveraging Google Search, and providing helpful products and services. Maximize reach by selecting the right channels and optimizing SEO efforts.
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