Having a budget for any marketing plan is a good start, however if you are pouring your money into an ad campaign that is destined to fail, is not a good plan. There have been a number of occasions we see companies using online ads but are not seeing any success as they are not know to their audiences. Without trust or recognition the cost per click will remain high and will rise.
Generally with every new company campaign whether you are looking at selling something or to get exposure, this is to try to drive visits back to a web page or website and to get conversions out of it. They may go and buy Facebook ads, Twitter, Instagram Ads etc. They may also use the Google Display Network and use the AdWords Service. All of these services will drive traffic to your web page and then to get a conversion.
Generally speaking these ads will get a high cost per click. This will happen as they start out with a high CPP because this is a new campaign. THis is naturally going to happen as none of the platforms will have experience with a new campaign or your company. Until you prove to the platforms that you are getting high engagement, at which point they can bring the cost down per click.
Why Does This Happen
Before we go into detail, when the click through rates are low and no-one engages with your Facebook Ads, Instagram ADs or AdWords Ad then the cost to show these to more people increase and resulting in a campaign that is harder to make profitable.
This mean that exposure to the audience you need to reach is much smaller and the cost to reach the next person and drive each action increases too.
This is down to:
- The audience you are reaching does not know you (reputation)
- They dont like you, or don’t know your company product (trust)
Because of this your campaigns can suffer and struggle.
However, this is not always the case, but more often enough this happens for all new company campaigns.
In essence the solution to this is to try to get your audience to know you before you put your money into advertising.
This means maybe investing into organic channels such as SEO, sponsorships, events or anything to get your brand name and or the names of your product out there.
Another option is to advertise to an audience exclusively that already has experience with you.
This can be done through Google’s retargeting and remarketing platforms. This can also be achieved through Facebook, through email address that you can upload, along with Instagram and Twitter. Through these you will find that you will have better engagement, better click through rate, conversion rate and drive your cost per click down.
If these aren’t implemented, sometimes your investments will be quickly running out of cash. So first, try and invest in these before you start your campaign.