Where You’re Wasting the Most Money in your Business
And how to fix it
It’s one thing to provide great services as a business and it’s another to get that information in front of the right audience by advertising and marketing.
A necessity to growing a business, advertising needs to be done strategically both behind the scenes and the graphic design that viewers see.
Once you have the great design in place and a stellar set of ads to show off, you need to pay to have them shown in front of your ideal audience. Yet, many ad networks aren’t able to narrow down your ideal customer base on their own. They do it demographically. Which is the single biggest waste of money for your business.
And here’s why:
In this post we’ll be discussing:
- Where your business is wasting the most money
- What you should be doing for your business instead
- Our three remedies to marketing waste
Where is the biggest waste of money in your business?
Advertising to a demographic.
When you pay for online advertising you are advertising to a large demographic, and hoping that a reasonable percentage will click on your ad. And from that small percentage of clicks, another, even smaller amount, will make a purchase or subscribe to your emails.
$500 Ad spend for 25,000 Ad Impressions ->
1,250 clicks/sales page views (5%, fairly high but as this is an example)- >
25 sales/subscribers ->
$20/cost per acquisition
This example is a fair & friendly one and shows a best-case scenario for many businesses. (Keep in mind many businesses are paying much more on their ad spends). This example shows the reach that a basic demographic targeted ad would receive.
What you should be doing instead:
Advertising based on behavior.
Let’s imagine that you were able to spend that same $500 on ads, but you could advertise directly to people who are ready to make a purchase and are looking for your services. That’s an interesting thought; being able to communicate directly with people who are actively seeking what you provide.
$500 ad spend for 25,000 Ad TARGETED Impressions ->
6,250 clicks/sales page views (25% conversion!) ->
938 sales/subscribers ->
$0.53/cost per acquisition
If you aren’t targeting your ads to the right people, then you are wasting money. Literally putting money into the hands of another company that cannot guarantee who they advertise to will even want or need your services.
This wasteful spending slows the growth for your business and it leads to less ownership, as those ad networks keep your customer data for themselves. They do this so that they can learn about the individuals they’re advertising to. They aren’t necessarily learning how to better advertise for you. So, now you’re also giving money to a company who doesn’t have your best interest in mind.
How can you combat this overspending while continuing to advertise and grow your business simultaneously?
Here are our top three ways you can remedy wasting money in advertising:
(1) Identify who is coming to your website
(2) Target your ads to the audience in need of your services
-Targeting the people who have visited your website
-Target individuals who are following behavior patterns leading to your services, instead of the masses or a demographic
(3) Partner with a business who can support you in finding your ideal clients for business growth- Upswing!