One of the biggest issues facing advertisers (and mainly their agencies), is that any new campaign which is meant to drive traffic to a landing page/offer will inevitably start out with very high click costs. This is partly due to PPC algorithms, and partly to do with name recognition. The famous Moz Whiteboard Friday expands upon this in their latest article.
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.
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..