How do they decide?
On a recent trip to the United States of America I was absolutely shocked to discover that in the USA, many of the online/digital giants actually advertise all over The States.
For years I have been telling the team “Do you notice Facebook/Spotify/Twitter etc.. don’t advertise?”
Well, this is Australia, and they don’t. You’ve never seen a Facebook ad on the street advertising their new functions have you?
Well, in every city and state I visited in the USA (5 cities in 3 states) I saw billboards advertising Facebook and how to Go Live on your device.
So I asked myself (and now I am asking everyone else) how do they decide where they will advertise? Why do we not see Facebook advertising in Australia but we see it all over the US?
I am intrigued. Could it be our population doesn’t really warrant the expenditure? Could it be that the cost of advertising in Australia is too high to bother? Or, could it be that our engagement with advertising isn’t as high as other countries?
I’d say it’s a combination of all of the above and possibly a lot more. Australia is often a forgotten market in the global scheme of things. We’re kind of small (population wise, not land wise) and so don’t contribute much revenue to global companies. We’re a little bit unique in our ways (seriously, there is no other people who are quite like Aussies) and so can be hard to advertise to (or impress). And we’re also creative and competitive in our marketing (it was an Aussie company that made that phenomenal Doritos ad that played at last years super bowl).
Where am I going with this you might ask? Well, the real question I am asking is, how do YOU decide where and to who you advertise? Do you immediately go national? Do you target various audiences with different ads? And, how do you stop yourself from spending your budget in the wrong place?
Measuring advertising effectiveness is one of the most important part of advertising. Some would say the most important (don’t tell the creatives I said that though!). It can be difficult to work out how to measure some of your advertising, but the experts can tell you how.
There is nothing worse than spending money on your advertising and not knowing if you are making money in return. I mean, you can spend x amount of dollars and then make y amount and as long as y is higher than x, you’re all good right?!?!
Wrong. What you really want to know is, if you spend a on one campaign, and you make b, then b should be higher than a. And, if you spend c on a different campaign, you want to make d, and d has to be higher. And so on and so forth.
Think of it like this.
If you are spending $30,000 per month on your advertising through Pay Per Click Management, and you’re making $50,000 per month, you’re doing great, right?
Well, it could be wrong.
You could be spending $15,000 on Adwords or Search Engine Marketing Management and making $40,000. And spending $15,000 on a search aggregator or directory and making $10,000.
This means, you’d actually be better served scrapping your directory spend and doubling down on your Adwords (or finding another channel because there is no guarantee that doubling down in spend will result in double to revenue).
Ask us how to measure your ROI and get your advertising spend in check through PPC management.
