Pouring money into a paid ad campaign that's destined to fail isn't a sound growth strategy. Time and again, companies breaking into online ads don't see success due to the same issue: they aren't known to their audiences. There's no trust, no recognition, and so the cost per click remains high and rising.
In this edition of Whiteboard Friday, Rand identifies the cycle many brands get trapped in and outlines a solution to make those paid ad campaigns worth the dollars you put behind them.
Video Transcription
Howdy, Moz fans, and welcome to another edition of Whiteboard Friday. This week we're chatting about the number one reason so many paid ad campaigns, especially from new companies and companies with new products or new ventures that they're going into, new markets and audiences they're addressing, fail. They just fall apart. I see this scenario play out so many times, especially in the startup and entrepreneurial world but, to be honest, across the marketing landscape.
Here's how it usually goes. You've got your CEO or your CMO or your business owner and they're like, "Hey, we have this great new product. Let's spread the word." So they talk to a marketer. It could be a contractor. It could be an agency. It could be someone in-house.
The marketer is like, "Okay, yeah, I'll buy some ads online, help us get the word out there and get us some traffic and conversions."
Then a few months later, you basically get this. "How's that paid ad campaign going?" "Well, not so good. I have bad news."
The cycle
Almost always, this is the result of a cycle that looks like this. You have a new company's campaign. The campaign is to sell something or get exposure for something, to try and drive visits back to a web page or a website, several pages on the site and then get conversions out of it. So you buy Facebook ads, Instagram ads, maybe LinkedIn and Twitter. You probably use the Google Display Network. You're probably using AdWords. All of these sources are trying to drive traffic to your web page and then get a conversion that turns into money.
Now, what happens is that these get a high cost per click. They start out with a high cost per click because it's a new campaign. So none of these platforms have experience with your campaign or your company. So you're naturally going to get a higher-than-normal cost per click until you prove to them that you get high engagement, at which point they bring the cost per click down. But instead of proving to them you get high engagement, you end up getting low engagement, low click-through rate, low conversion rate. People don't make it here. They don't make it there. Why is that?
Why does this happen?
Well, before we address that, let's talk about what happens here. When these are low, when you have a low engagement rate on the platform itself, when no one engages with your Facebook ads, no one engages with your Instagram ads, when no one clicks on your AdWords ad, when no one clicks on your display ads, the cost to show to more people goes up, and, as a result, these campaigns are much harder to make profitable and they're shown to far fewer people.
So your exposure to the audience you want to reach is smaller and the cost to reach each next person and to drive each next action goes up. This, fundamentally, is because...
- The audience that you're trying to reach hasn't heard of you before. They don't know who you are.
- They don't know, trust, or like you or your company product, they don't click. They don't click. They don't buy. They don't share. They don't like.
They don't do all the engagement things that would drive this high cost per click down, and, because of that, your campaigns suffer and struggle.
I see so many marketers who think like this, who say yes to new company campaigns that start with an advertising-first approach. I want to be clear, there are some exceptions to the rule. I have seen some brand new companies that fit a certain mold do very well with Instagram advertising for certain types of products that appeal to that audience and don't need a previously existing brand association. I've seen some players in the Google AdWords market do okay with this, some local businesses, some folks in areas where people don't expect to have knowledge and awareness of a brand already in the space where they're trying to discover them.
So it's not the case always that this fails, but very often, often enough that I'm calling this the number one reason I see paid ads fail.
The solution
There's only one solution and it's not pretty. The solution is...
You have to get known to your audience before you pour money into advertising.
Meaning you need to invest in organic channels — content or SEO or press and PR or sponsorships or events, what have you, anything that can get your brand name and the names of your product out there.
Brand advertising, in fact, can work for this. So television brand advertising, folks have noticed that TV brand advertising often drives the cost per click down and drives engagement and click-through rates up, because people have heard of you and they know who you are. Magazine and offline advertising works like this. Sometimes even display advertising can work this way.
The second option is to...
Advertise primarily or exclusively to an audience that already has experience with you.
The way you can do this is through systems like Google's retargeting and remarketing platforms. You can do the same thing with Facebook, through custom audiences of email addresses that you upload, same thing with Instagram, same thing with Twitter. You can target people who specifically only follow the accounts that you already own and control. Through these, you can get better engagement, better click-through rate, better conversion rate and drive down that cost per click and reach a broader audience.
But if you don't do these things first, a lot of times these types of investments fall flat on their face, and a lot of marketers, to be honest, and agencies and consultants lose their jobs as a result. I don't want that to happen to you. So invest in these first or find the niches where advertising can work for a first-time product. You're going to be a lot happier.
All right, everyone. Look forward to your comments. We'll see you again next week for another edition of Whiteboard Friday. Take care.
Thanks for checking out this week's WB Friday all. Some items for discussion:
Look forward to your thoughts!
p.s. To preempt a likely question, yes, I'm no longer formally employed by Moz, but I'll still be appearing on WB Friday for some time to come (both through episodes I've recorded prior to my departure and through a few I'm planning to film on occasional upcoming office visits).
This article seems misleading. If I understand correctly, one of the main pillars this argument is resting on is that potential customers that have never heard of a company have a lower propensity to click on their paid ads, but marketers should build their organic presence to entice those same customers once they're in the market and hope that users click their organic result?
Given this is Moz, I'm not surprised that organic is being presented as the only solution ("Meaning you need to invest in organic channels — content or SEO or press and PR or sponsorships or events, what have you, anything that can get your brand name and the names of your product out there."), but there's so much more to consider before dismissing paid media channels in favor of traditional and organic, including:
When appropriate, marketers should use paid media campaigns in tandem with other channels, so as not to rely to heavily on one channel for their business. While paid media campaigns may be expensive for those without a plan, organic strategy can be equally expensive (if not more so) if significant time and effort are invested and it simply never yields results or if search engines simply decide to update algorithms and discount all the hard work.
TL;DR - A diverse marketing strategy is a good marketing strategy; relying too heavily on any one channel will usually yield sub-optimal results.
This is awesome, very well said Rand!
+Great points Andy! I think there's also a lot of opportunity to use paid mediums like Facebook and Instagram to learn more about a target audience as well. Which ads did best? What's the size of a specific audience interested in xyz? What copy got a higher click through rate? Which pictures were more successful?
From my experience, what Andy describes in his response is absolutely true. In particular, the third bullet point he lists should not be overlooked. There's so much more that goes into crafting a successful PPC campaign than simply whether or not your audience is biased to your brand or not.
On a basic level, Rand's article above is saying "you can't have success without a lot of planning and thought, don't just rush into a PPC campaign and expect things to work out." -- I agree, and this is wise to point out.
But beyond that, the article suggests that without brand uplift, you most likely won't have PPC success (outside of a few anecdotal or niche occurrences). -- I find this Misleading. In other words, Rand implies that when doing an autopsy on a failed PPC campaign, you will find the #1 reason for failure is lack of brand exposure.
It's undoubtedly true that retargeting fosters lower CPC's and higher engagement, as does any prior brand exposure for the audience you're targeting. In general, if your team can pull it off, having a more sophisticated and long term funnel will pay off ... even if the costs are much higher upfront to prepare everything.
I am reminded of a Larry Kim article from quite a while back about RLSA (https://www.wordstream.com/blog/ws/2016/11/16/rlsa...) where he describes two kinds of audiences: people who know your brand and people who don't. These behave fundamentally differently, where those who know of your brand result in substantially higher engagement, etc. It's interesting to me because this is essentially describing the same phenomenon Rand describes in the article above, just from a different perspective.
The thing is... it's too easy to say in retrospect, "hey, this campaign failed because, well, see the CPC was too high so the ROI didn't work out. If we had a half the CPC and double the CVR, we would have been successful though." ... "Okay, so if we had more branded traffic we would have had lower CPCs and higher conversion rates, so that must be our problem!"
We're talking about the bottom line, whether a PPC campaign is profitable or whether it's not.
I find it a little bit of a cop out to suggest that the solution to a failed PPC campaign is to literally not use PPC campaigns and invest the money elsewhere. This is to say that, the ad campaigns failed because they shouldn't have ever been run in the first place at that time.
"How do you run a successful paid advertising campaign for a new product? You don't." -- This article.
Yet, there are literally hundreds of tactics to reduce CPCs and increase engagement. Not to mention, PPC ads themselves increase brand exposure and build your retargeting lists, so there's a recursive element to using them. There's so many moving parts. In my experience, I've seen companies bidding on the wrong keywords using the wrong bidding strategies, targeting incorrect audiences, locations, sending traffic to poorly designed landing pages, all of the obvious things you'd think people would get right... To put it in other words, despite branded traffic behaving more favorably, if you're sending customers to a landing page that converts 0% of the time, three times zero is still zero.
Again, it's completely true that branded traffic behaves better than non-branded traffic. But to say that, specifically, the solution for PPC campaign woes is to have more brand exposure completely avoids all of the potential pitfalls related to PPC campaigns, just circumvents dealing with them entirely.
All-in-all, great post by Rand and comments by others -- it's generating some insightful discussion!
Thank you, Rand, for an insightful article. It's true, no longer can you just place ads, describe what the product or service does, and expect a good return on investment.
As you stated in the article, a major failure with paid advertising for new brands with no loyalty, following or brand recognition is to understand the target market. Typically, failed campaigns will either have limited initial research or none at all. It is detrimental to understand your audience and competition completely before you write your first ad.
Research proves most purchases are based on subconscious emotion and are justified by logic. Understand a customer's hot buttons, cognitive bias, pain points or things they love about a similar product.
So how do you develop a marketing strategy?
Research Your Audience. Research Your Competitors
We can dedicate short novel to competitor research and how it relates to neuromarketing and emotional spending decisions. Instead, I will just summarize some of our findings.
The great news about this step is it is used as the first step in any marketing campaign. Research provides great insight such as:
Make a list of a few of the top competitors and a few of the mid-level companies. Find out where they are in relation to the strategies below. Take notes on how well they do things, make a note of some things they do poorly.
Next find all the reviews you can about the products, services, and company. Take note of the good and bad reviews. Both provide insight into just what exactly your customer base is looking for.
One quick example, if you find a lot of negative reviews about shipping costs, you might want to have an ad that offers free shipping. You can just add the cost of the product or offer free shipping over a certain purchase amount. We had major success with several clients using this strategy by including this value in the ad and supporting it on the landing page.
The Customer Journey
Develop a visual sales funnel and go over each step of the funnel from ad to advocate. The focus of this exercise is to understand what questions the end user may be asking themselves and answer the question along the way. A customer already has an idea in their head how the sales process should work.
The ads, keywords (if applicable), landing pages, follow up emails, purchase process, and customer service experience etc. should tell the same story. Each step should support the previous one and motivate the next step. If you are boasting "greatest product since sliced bread" you should have definitive supporting evidence of that in the next step. Social proof helps, guarantees, reviews, and any supporting evidence of your claims will increase conversion.
Offer Multiple Contact Methods
Some people purchase immediately because they already made a decision to buy when they saw your ad you were able to hit all their hot buttons. Some people are still doing research while others will never purchase at all.
By adding multiple, easy to find ways to contact you (Chat, Form, Phone, Text) you allow the customer to communicate with you in a way they are comfortable. Try not to require a lot of personal information, just to ask you a question. During this 'courting' stage it's important that you put our customer first in your approach.
Set Up Conversion Tracking
As stated above, customer like to communicate/purchase in different ways. It is important that you set up conversion tracking for all ways a customer can communicate with you. One way to track calls from different advertising mediums is to use different call tracking number for each. You will also want to tie it all together in a dashboard. We use Google Analytics, however, there are others. You will also need to figure out a value to assign each conversion.
Understand Current Customer Journeys
Often people will research on a phone and purchase either on a PC or through a phone call. To track the conversion paths. In Google Analytics You can see 'Top Conversion Paths' by going to Conversions> Multi-Channel Funnels>Top Conversion Paths. This provides more information about the customer journey. One journey from a client today looked like this:
Paid Search>Organic Search>Paid Search>Direct (5)>Organic Search>Paid Search>Direct>Purchase $247.59
Well I agree with everything you said about lowering the cost and driving a powerful ROAS.
Now if I was getting into the self help industry as an unknown practitioner vs someone like Tony Robbins well yea you better make yourself known through the methods you mentioned.
Yes the seasoning or aging of the campaign plus engagement equals a lowers the ad cost and ultimately drives down the cost per acquisition.
But as one of those"marketers" I will disagree
You know that there is a lot of set up and research before the campaign goes live (Hopefully) its not just "Okay, yeah, I'll buy some ads online, help us get the word out there and get us some traffic and conversions."
"some exceptions to the rule." I don't think there are "some" exceptions to the rule but many. Like you said specifically local businesses. There are so many more small businesses than large corporations, so just looking at it from a pure numbers point of view I think there are more than some.
I could do this all day long.... but I needed to leave the house 5 mins ago
Look at SEO its all about positioning right? 1st result X amount of clicks 2nd result gets X amount of clicks and so on. If someone saw my domain and has never heard of me does that keep them from clicking? No, because we had a meeting of the minds, search and results. Now, do I have the right message or story that will lead to a conversion? That will be determined by my conversion ratio.
PPC or whatever paid search you are using its really about targeting the right audience with the right message at their particular stage in the buying cycle. Then you craft the right message. It falls back to that old saying "you sell the sizzle and not the steak"
So in my humble opinion I think the #1 campaigns fail is you are targeting the wrong people with the wrong message.
I have been doing this for 22 years and never lost a job based on performance, fingers crossed.
I am sad to see you go MOZ was the only place I used my actual real name and that even took a while. lol
Fish, where ever you go I will follow because you are AWESOME, known and I am a stalker. oh did I just unknowingly prove your point? hmm
Good luck to you and your loved ones!
Great topic and insight here Rand! Alot of advertisers fail to understand the relationship between a new campaign and high CPC, especially if the brand awareness isn't there to back up the ads. SEO, Quality Blogging and Inbound Marketing efforts are definitely a good prior to step before investing heavily in Paid Ads.
There's no reason to fail, follow this protocol:
I promise if you follow this protocol you will have very successful search AND display ads.
Thanks for another helpful post Rand!
As a marketer I don’t have much experience with Paid ads but if I put myself at users/visitors place, I rarely click unknown ads. And if I do then before taking any action I used to well research about the company, its products/services, and reviews. If I don’t found it’s somehow a good online presence, I used to leave because I can opt for something better.
So, what comes out is what Rand you have said above. Investing time & money in paid ads will only be worth when it’s done with brand awareness, research and planning.
We've seen this happen time and time again with clients we do SEO for, great analysis Rand! If the branding isn't there and they haven't been ranking highly on Google for relevent keywords for long-enough, paid ads can often fall flat unfortunately, especially if they have someone managing them who isn't a pro. Solid topic and Godspeed in your new venture at Sparktoro!
Hi Rand, this topic really speaks to me. We've wasted so much money trying to advertise on Facebook, Instagram and AdWords and in all fairness we have failed miserably.
After failing I've decided to build our brand first and started to work with bloggers, applied to awards (today morning we've just won one) and started to be more active in and engage with Facebook groups. As a result our audience changed and we started to have requests from very well known magazines as well.
Nevertheless our pages became more SEO-friendly and found more targeted long tail keywords and started to attract more organic traffic. Our next goal is to start advertising in August this year and get ready for the Black Friday-Christmas period.
Your advice is great and could save hundreds/thousands of advertising money and channel that money in building brands and raising awareness to the brand, so thank you!
I think the best way to combat this is to be running campaigns that relevant to the customer on their journey (awareness, consideration, acquisition, service, loyalty). From what I see most marketers tend to focus on awareness or acquisition (conversions) independent of each other, resulting in failed campaigns. But if you have continuous campaigns that are balanced based on these sections on the user journey, you would have much more successful ad spend and a more structured funnel. Exemptions that I have seen are emergency services like locksmiths, roofers, plumbers, etc. In this situation acquisition/ conversion campaigns seem to perform better. However, familiarity of the brand seems to sway the customer's final decision, especially with expensive services.
Knowing your target audience must be paramount before sending any campaign to adwords, you can not send an advertising campaign focused only on men, when you sell exclusive products for women, it is logical.
Very good post, like every Friday. Good weekend and forgive me for my English
One thar was not mentioned was YouTube ads. (Yes, technically they are part of AdWords). IMO I think that they work great to a brand in front of people. Especially through remarketing & in market audiences. Cheers!
Mixed feelings about this WBF A.M. (After Moz), but mostly agree.
As the resident martech person in many circumstances it always amazes me how we’re also typically the ones with the most to say about SEO. [Present company excluded, of course haha] What’s equally amazing is how people tend to clump (good word) marketing and advertising into the same egg-basket.
As interrelated and co-mingled as they are, marketing and advertising are not the same. Their goals are not the same, nor should be their strategies. By extension marketers and advertisers are not the same.
Although it’s been affectionately named ‘search engine marketing’, or as some like to call it ‘SEM’ perhaps to avoid the stereotypical stigma associated with an industry historically riddled with snake oil ‘madmen’ and distrust, the use of ads in search engines is just that -- advertising. Google has fashioned cool ‘marketing’ tools to research those ads and trained our brains to think that we’re doing ‘market research’ when, in fact, we’re doing ADS research.
I say all this to say, that no matter what fancy tool or fancy platform we use … if we fail to do our market research we can only credit our wins to luck (at best) and random acts of buyer ignorance (at worst). While attracting volume interest may be cool for AdWords junkies whose only goal is to turn clicks into leads and ‘hope’ for conversions, this ‘hope as a tactic’ strategy is neither scalable or sustainable. Hell, it’s not even a strategy.
It could be a result of an ‘ad-blocker mentality’, but the best PPC guys we’ve encountered tend to be ultra conservative when recommending PPC ad spend -- completely counterintuitive since many PPC agencies charge based on number of campaigns managed and ad spend budgets. Maybe the best PPC guys fundamentally don’t really believe in clicking on ads? haha A strange and twisted, yet often effective way to regulate otherwise obsessive, often ineffective ad spend.
I’ll go back to my cave now. Thanks for another excellent WBF RandFish. (bow)
Hi Rand! I don´t have any interesting experience to share with you about today´s topic, but I just want to say thanks to you for all the knowledge offered in Moz Blog.
Nice article. In my experience, segmentation problems are the most common thing that generate fail campaigns.
The article leaves me speechless. Thanks for the knowledge
I agree with many of the statements made in this article. There is a lot that goes into organic behavior that many don't realize directly impacts paid behavior. Those engagement actions follow a similar rule across search, social, and other platforms. If people are willing to engage with your content, your relevance score increases and thus once it is shown to more people, with like behaviors based on targeting, we can reasonably assume those 'lookalikes' will take a similar action and engage with the content.
I never knew this before. I use to pay for people to view my website before. But right now, I will stop doing that. I want to use this medium to thank the Moz community for giving this information. Thank you.
I agree with everything from this post. I believe that one of the most important things is people's opinion and activity. Everyone chooses how to attract the audience. I think no matter the method, it has to be done the right way, not the spam way.
Scott Allen
I think that paid ads help to rank higher in google
Hi Rand,
Great WF as usual!
Thinking on, as SEO only, you gave us new arguments for "SEO first and foremost".
I will be nice enough to tell potential clients in advance that do not waste their money on SEM or paid Social Media? or I will explain later when they knock my door asking for a SEO and Social Media audit? Somehow a moral and interest conflict. I might decide case by case.
We still use local radio for Brand awareness.
On regard your partial depart from Moz, what I can say! best wishes and good energy for the SparkToro team.
When it comes to the central point of the article - that knowing your audience will make paid campaigns better - then I don't think anyone could argue.
Where I see divergence is how audiences are defined. In paid social you do best to define the audience by who they are, positioning. Knowing everything about the audience is to increase the value of your offer and an opposite strategy to Search.
In Search every different keyword is a separate audience - it often includes a wide range of people and needs. The most successful offer is one that broadens to meet the needs of more of them - more returns for the same spend. Goldilocks :-)
My view on the primary reason that Search campaigns fail is the competition does a better job of meeting the needs of that particular keyword audience. If 80% of that KA wants an entry level solution and you don't have one, then the competition finds you vulnerable, their investment goes further, and crucially, quicker (time is underated). Ultimately, organisations still ignore the Search Term and how it might inform their product management.
Making a product and then looking at search is backwards.
Promoting high priced long buying cycle products that match only a small part of the KA, (but potentially all of the chosen social audience) but also slows down the investment cycle, ignoring the benefits of compound growth, plus, it is much harder to test an audience that isn't ready to buy.
I appreciate that seo is successful in the long term because it catches people earlier in the buying process and creates trust - but the time involved could burn funds spent on overheads. Spending money on the top of the funnel before making sure the bottom of the funnel works seems super risky - and expensive, and hard to track and measure.
Ok, I see exactly what this is about, Being the head of a web marketing agency, I get this very often, and even more we're in a third world country where web marketing is still "a new thing" and people don't really understand it ... So the thing we do, and recommend to our customers (the vast majority don't even have a website, just a facebook page) we recommend to them to go through the funnel in ads :
first focus with a little budget on awareness, to get the word out there and let them be known, Facebook awareness campaigns do a great work with that, controlling the frequency and reach parameters. AdWords Display campaigns also work wonders in awareness mode.
Then, we launch Trafic campaigns On both (Fb and AW) to get people to the website (when there's one) and engagement campaigns on facebook (promoted posts generally)
While doing that we're building audiences with Facebook Pixel and Analytics & Adwords Retargeting scripts.
If we have databases for these we also create lists and lookalike lists to target those audiences and get good engagement for the campaigns.
With this approach, we have a 99% chance of doing it right each time. The 1% is when the product, content or creatives are out of the scope and we cannot controle them, but we learned to check first since ... :)
Hi Rand!
I'm not sure if I agree with you on this.
We usually work with companies that are not know in their industry or market and (usually) get good results on paid media campaigns.
The way we do this is by building trust in the ad creative. This works well in Latam market, maybe it works different in other markets.
I'm a big fan BTW. Cheers from Mexico
This is probably why referral marketing is so successful. People who know who you are, referring to a friend (usually some benefit/discount is offered to both) and this provides the 'trust' that is otherwise missing.
Hi Rand! I don´t have any interesting experience to share with you about today´s topic, but I just want to say thanks to you for all the knowledge offered in Moz Blog. We are going to miss you Rand, once at week at least!
I wish you the best for your new projects and... may the force be with you ;-)
Great video this week Rand. Congrats on the next chapter with SparkToro. About this WBF:
Homepage
I agree that many brands and especially startups will send traffic to their site/homepage, which is the problem. They should be sending traffic to super focused landing page that tells the right store about the brand and gives more background. When we do this for our clients... usually outside of ecom as those go to product pages... we see a great conversion rate. Plus we can a/b test that landing page and improve it over time.
Competitor Campaigns
I don't agree about the high CPCs, especially if you are bidding on brand in AdWords and Bing. It can high for non-brand and competitor keyword campaigns but that's the risk for increasing you brand awareness. Bidding on competitor keywords is one way we get around the awareness issue for clients. Competitor campaigns work for people searching for XYZ and then see our ad... we stand a better chance of winning their business. For one B2B client in the USA. We are doing this on Bing and are basically convincing an untapped market to use our solution.
The whole point of search is to get business who are unknown to become a known brand as people are searching for a solution but may not know the exact campaign that they want. PR and brand awareness can help but similar to SEO, it can be a long-term project before you see traction.
The agencies who are not making it work are similar to those who can not make SEO work. They don't know what they are doing and have convinced a client that they know what they are doing.
Oh, Rand Fishkin, the first I want to wish you all the luck in the world. Your (formal) departure from MOZ is very sad. I hope everything is well.
I think is very interesting the Friday post. I will leave my opinion about it.
The Internet advertising through channels that are already traditional is saturated. Perhaps it is more useful locally, but at a national and international level, it is difficult to position an unknown brand in that way.
We rely on data and create a profile of buyer persona, which allows us to scale positions thanks to inbound marketing. It is usually less quick than advertising but they are complementary. Today I would invest more money in SEO than in SEM, for example.
Have a good weekend!
Congratulations Rand, I like your post always. The issue of advertising is very complex although it may not seem so. It evolves very quickly and often does not work properly. Personally, Facebook ads work very well for me, but only for brand recognition. Thank you for sharing your experience as always Rand
This is an awesome whiteboard Rand. I can't tell you how many times I've tried to have this conversation with a client and explain how to build digital campaigns. Unfortunately, many think that because these are instant gratification platforms results are instant as well and you can boost a bland post with no target audience or grab a bunch of AdWords and expect to do well.
This ain't Field of Dreams!
I get the spirit of this white board Friday and I think you are 100% right about building trust as one of the best ways to better business. However, I have actually had the complete opposite experience with multiple clients. My experience with Facebook advertising is that it's precisely what you need to do to get known to people and will help get their trust (as long as you have something good to offer).
I just advertised for a client to an audience that had no idea who they were for a book they didn't know existed. The ad campaign on Facebook was my first guess at targeting but was able to target pretty tight. The ad got a relevance score of 9 and at one point during a day had a 12.0% CTR. It since has fluctuated between 1.5% and 2.00% CTR, has a $0.50 CPC and has generated multiple sales to easily pay for the ad campaign while picking up a roughly 3% increase in Facebook page "likes".
Similar things have happened for a bakery client with Facebook advertising targeting engaged females with wedding cupcakes, especially when doing the first few campaigns. If I had to guess why this happened it's because the audience doesn't really care if they know you, they just care if you are providing them value. In both cases, the offer was right, the audience was very targeted, the ad creative resonated with the potential customer and they were in need of that product / service.
I've seen how powerful Facebook advertising can be when done right and believe me, I've done it poorly before and it failed.
I don't think you're really disagreeing with Rand because you point out how you did target audiences and it sounds like you did at least a little bit of research to come up with them. He specifically mentioned that target audience on Facebook is a way to overcome the main problem he's talking about which is the spaghetti approach to buying ads.
I've seen a pretty decent impact on new audiences using LinkedIn, but my customer pool is really low, so anything looks good. On LinkedIn you can search by current or past associations with certain companies, so if I'm looking for architects in a specific building market I can get narrow with a large enough reach.
The main issue, which you touched on, is cost. A lot of "newer" companies (or at least companies new to social media) simply don't have the resources, or the will to allocate resources, for social media. Where a large, modern company might spend a few hundred per campaign, others spend less than 50. So we have to be extremely narrow because every click literally counts. We can't cast a wide net.
Nice to still have you on WBF, Rand. Great topic. I would also say CRM/segmentation system to capture leads and re-engage.
I have to admit that I've never even thought about that. Thank you very much. I'll consider this while creating new online strategies for clients.
So would you say that online advertising is not a good way to work on brand recognition?
Thanks
Interesting to get this a day after selling someone a big package of paid ads and SEO. I like being pushed to consider whether I need to recalibrate my practices, as being kept on my toes is really making me sharper as a writer and a salesman.
Hi Rand,
Nice Post
Different customers have different requirements. Thus, they look out for the same across different social media channels. Thus, it becomes your responsibility to cater their specific needs by utilizing the correct social media outlets for your brand marketing.
Even if you have identified your target audience and have delivered your message correctly, you would still need to keep track of the effectiveness of your marketing strategies. For instance, you know that Facebook is the best social media platform for your brand. However, it is also imperative to realize how your Facebook campaign is performing, how many likes & subscribers you have, and how your posts are performing among the public. This analysis would help you improve the overall social media marketing campaign of your online business. We as a paid advertising service provider, try to make easy and best way to promote on social medias.
The number one reason paid ads (On Search, Social, and Display) fail is most advertisers don't know how to write good ads. Olgilvy, Hopkins, Reeves and all of the old schoolers taught advertising principles that stand the test of time and technology. If more people took lessons from the past, they would succeed in the future.
Makes me wonder if I should just do facebook ads, my followers are the only people that know my brand pretty much. Most massage therapists are struggling, even the more qualified ones (cough cough..) so I am glad I waited long enough to have this article come up before I wast my precious dollars. Thanks Rand.
Andrew Sarasin, Massage Therapist and Personal Trainer
Massothérapie St-Rodrigue
This article shows the real way to start your campaign. In my opinion we can start with a small budget with display campaign that will surely help you in getting into your target audiences.Then after analysis we can switched to text ad with proper keywords and plan to get effective conversion for businesses.
Lots of great comments here. What a Marmite post! I've seen questions about this popping up in the forums a great deal. My personal experience is that we ran ad words when we were new and it didn't work. We also went in the paper and on the radio and it didn't work. Then I decided to learn SEO and we gained some prominent positions in the SERPS. Now the ad words can be used to literally squeeze our competition off the SERP and display and offline is working. So i'd say this is very sound advice and advice that would have saved me about £100,000 if i'd heard it three years ago. To an advertiser everything is advertising. Like to a hammer everything is a nail. But ask an advertiser about SEO and they'll draw a blank. I think SEO is sometimes the *last* thing we small business owners learn when it should certainly be the *first*.
Paid ads fail for many reasons, but the dynamic I see at play most often is that the predictability of paid ads is used to justify a brute-force approach to capturing leads that have no prior awareness of the brand or product.
The conclusion of this video rang true to me so, I did some literal back-of-the napkin math to illustrate this concept to a colleague. I cleaned up those notes a bit and drew out some example campaign metrics to illustrate this concept of how paid ads can fail.
Makes sense, the way i see it, you have a new company or a product, unless you higher an agency that already worked with a similar product/service/company, how would you know who/how/when/where/what to target for best results?you can only guess or target from personal knowledge and some research but its like walking in the dark hoping to hit the target, once you do SEO and content and such you would be able to gather up data and info and know who to target when and where. but then it makes you think, its a cycle, if you are not known you wont get traffic, you wont get traffic you dont get data about your audience, without that data you dont know your audience and without knowing your audience you dont know how to traget them to get traffic and if you dont get traffic... which means the only way to do it so keyword and market research, google trends to learn whats around your brand and product/service, suggested keywords and searchs and terms and market research through blogs and websites who already went through that cycle.
Wow! I did this mistake number of times and still didn't realise it was a mistake. I have launched or been a part of a few startups in my life and every time it was so hard to break the ice. Thanks for your video. Helpful, as always
Hello Rand,
I have been quite active in learning new things each friday with WBF.
About this session, I agree to whatever you said about the audience being aware about the brand before going for Brand Ads. BUT, I am looking for an answer to " How do I start Branding a particular Business without Prior Audience ? "
If the audience I want to target has never heard about me before, What I prefer is, going for small paid promotions for brand awareness along with Organic Result practices.
Rand is a PPC expert! Who knew??
I think it's always good to create quality content before you pay for any channel to advertise.
Why? Because? because when they visit your website they will see that you offer quality content, variety, usefulness.... Also, as they navigate the first time it makes the rebound rate lower, which also improves SEO.
However, it is also important to know which audience you are targeting, because this element is essential both to create advertising campaigns and to create new, original content and adapting to that target audience.
Hi Rand! I do not have much experience on this topic, but I want to thank you very much for all of the information given by you in moz blog. I hope, you have always succeeded.
I have a very bad experience with Paid Ads (Adwords), i got ruined myself, i think is you have 1k of dollars i always i would spend it buying content or links never in Paid ads
Bravo Rand! I have personally been fired for this and I wish I knew THEN what you expressed so well with this Whiteboard Friday! Thank you and please keep making us better Search Professionals!
its great feedback. Thanks for sharing what we actually thought at initial stage of our launching of SurbhiShop platform
and till now, {may be not so fast and high} , but we able to keep us alive organically on internet.
Kindly suggest, if possible, to improve more ranking organically. It will be very helpful for the team like us who are not so wealthy to buy billions to show up at top.
thanks again.
Surbhi Shop Business Marketplace Team
When attempting to start to sell our new services (digital marketing services) I was struck with a harsh reminder, how difficult it can be to sell a product or a service (especially a service) to customers when you have no brand.
We have built our coffee company’s brand (Aquaspresso) up quite nicely over the last 8 years to the point where most customers we interact with on a first time basis have heard of us or know of some company that uses our services. It hadn’t dawned on me how beneficial “brand recognition” can be when you are selling your product or service, until we launched our digital company a few months ago.
When we launched our digital agency (Digital Results) we had ,and still today, have no brand presence - we are essentially a nobody in a VERY flooded space. Digital Marketing must be one of the most saturated industries in South Africa if not the world especially when it comes to reaching one’s audience as all the digital agencies are naturally trying to find their customers online.
I however still have a strong belief that one can build a brand and find customers in the process, in a crowded industry. I’ve been experimenting with a number of distribution/sales tactics over the past few months and here are some of my learnings (mainly from failed experiments)
Every industry is different but in many ways all industries are alike. Cracking the brandless sales pitch is a big goal for me and I continue to learn new things each day in this mission.
Brand building of course is important but you have to start somewhere!
A debt of gratitude is in order for another accommodating post Rand!
As an advertiser I don't have much involvement with Paid promotions yet in the event that I put myself at clients/guests put, I once in a while click obscure promotions. What's more, in the event that I do then before making any move I used to well research about the organization, its items/administrations, and surveys. In the event that I don't discovered it's by one means or another a decent online nearness, I used to leave since I can settle on something better.
Along these lines, what turns out is the thing that Rand you have said above. Putting time and cash in paid promotions might be worth when it's finished with mark mindfulness, research and arranging.
You rock!
Also my opinion ads does not really work
100% correct Rand!
Many of client whom I spoke just talked about their previous Google or Facebook ads that didn't worked from them as they expected. I had cases where the web / business owners started these activities and due to low knowledge they faces these failure.
I have a real time example of one of my client who has Hotel Property in Munnar (Kerala) in India. They wanted to get more reservations from day one, I made them understand its better to initially start with reaching audience, letting them know there is a new property and how does these make difference, we hired a professional photographer who took amazing pictures, that were more attracted and we started with just display ads, optimized Google Business Listing, did SEO from them.
Now today, after 8 months Today, they are receiving great volume of reservations for their property, with more than100+ reviews (Positive) on Google Business Listing.
Web / Service owners always want to get cream leads from day one they hire a marketer, and even many of times the marketer showcase these area like they will start getting leads from the day they opt their services. Which lead to failure of campaign for lot of times.
I in person as marketer always try to let me client learn and see the real fact about their newly launched product or service, so they have a set of mind into what we are going to do as marketer for them and what expectation they can have from day one.
Thanks for such a great topic cover!
Cheers
spoken like a true pro do your research before you spend your money know your targeted group get to know them ask them their opinion