Instant Feedback From Campaigns
The best thing about digital advertising is that it happens in real time and it gives you almost instant feedback. When you make a decision to expose internet users to your brand via digital ads, your agency puts together a comprehensive strategy based on your strengths, your competitors and your potential clients’ behaviour. The end result is usually a set of campaigns on various advertising platforms (AdWords, Facebook, Bing, etc.). Each of these campaigns consists of ads (banners, text ads, etc.) and targeting methods (keywords, audiences, demographics, locations, etc.).
Via digital measuring tools, you can get instant feedback from your campaigns.
By default, your agency wouldn’t know EXACTLY which parts of the campaigns will work; you need to accumulate a decent dataset for that. To identify the performance of the campaigns, they will have to analyse incoming data and decide based on your business goals (brand awareness, lead generation, online sales, etc.). Once they have identified what’s working, they usually transfer budget from the weaker parts of your campaigns to boost results and/or expand your set of campaigns.
Based on your historical data, your agency is able to react to changes in your market quickly and efficiently.
Adjust Your Budget
Your agency should tell you if you need to increase your budget on the best performing parts. Unfortunately, most of them won’t tell you to reduce your spend as it’s their core agenda to actually make you spend more. The way these agencies charge is based on media spend as a relative fee (15-20%). Worry not, though, you still have options:
- You trust your agency
- You get an outside audit
- You interpret the data yourself
The latter requires the most effort and time (do not forget the learning curve) on your end but it’s also the most reliable. Whoever you work with, make them explain thoroughly what they do and how its performance can be measured. Be sure that those numbers support your business goals (e.g.: if you need online sales, then the metric “impressions”, or “click-through rate” will be only secondary).
Use your historical data to identify – either by your agency or yourself – opportunities and leaks. That information will help you decide on your ad spend budget.
Cost Are Never Linear
The concept that business owners need to understand is that expansion is almost never linear. That means if you have made £40,000 from £2,000 ad spend, then by increasing the budget to £4,000 you should not expect a £80,000 return. This is based on about a million different factors that influence the performance of your campaigns (e.g.: competitors getting more aggressive, users getting tired of you, no more room to grow, penetrating a new segment, Google changing something, expanding to a new ad platform, etc.). Things can either go up or down.
If You Feel Confused, Hire An Ad Agency
This is where the expertise and responsibility of your digital advertising agency come in. They will have to provide proposals and different plans to expand without having to worry about an exponential increase in costs. That doesn’t mean, everything is going to work, it means that an efficient company handles your online presence which knows how to measure digital performance, able to interpret data and can act accordingly. They will stop you bleed money if it comes to that.
You will not find a nicely paved concrete route in digital, it’s rather like a swamp. Remember, if it was easy, your competitors would already be doing it right. It’s quite hard, which can – with the right strategy – give you an advantage over them.