big brands spending on digital ads
Despite the large amounts of money spent on digital advertising, some big brands like P&G, Chase, and Uber have turned off millions of dollars of digital ad spending and saw no change in business outcomes. This raises the question of whether digital advertising works or not.
1. When small business owners reduce their digital marketing and the number of ad impressions and clicks to their sites, they saw business activity go up instead of down. This shows that digital marketing works, but the vast majority of impressions and clicks are from bot activity.
2. The problem with digital advertising today stems from marketers' obsession with big numbers. However, big numbers of ads and clicks do not translate into more business activity and sales. Marketers could be spending far fewer dollars and getting the same levels of business outcomes or spending the dollars more smartly in digital and getting even more business outcomes than they are now.
3. When big brands turned off millions of dollars of digital ad spending and saw no change in business outcomes, it suggests that there is more to the story than just the effectiveness of digital advertising. Perhaps, it could be due to other factors such as brand recognition and reputation.
Digital advertising does work, but the vast majority of impressions and clicks are from bot activity. Marketers need to focus on the quality of their digital marketing efforts rather than the quantity of impressions and clicks. Big brands turning off millions of dollars of digital ad spending and seeing no change in business outcomes suggest that there is more to the story than just the effectiveness of digital advertising. Marketers need to rethink their approach and invest their resources more wisely to get better business outcomes.
How Apple and Nike have branded your brain | Your Brain on Money | Big Think
- Consumers choose specific brands over others despite them being the same product
- Brands have the power to influence our behavior beyond the point of sale
- The influence of brands can affect our ability to make rational spending decisions
Factors Affecting Brand Influence:
- Brands can create identity and express affiliation with certain values
- Consumers can identify with a brand like family and defend it when attacked
- Our perception of brands can influence our decisions like our relationships with people
The Power of Brands:
- A study found that being subliminally exposed to the Apple logo improved performance on creative tasks compared to the IBM logo
- Brands can influence our behavior and shape the way we behave
- Brands can hold power in shaping consumers' decisions and have ethical, legal, and societal implications
Making Informed Choices:
- Being aware of the influence that brands hold is important in making informed choices
- It's essential to pause and think about why we're buying a product
- Brands have become pillars of our identity and support systems, but it's crucial to see them in a positive light
- Brands have the power to influence our behavior beyond the point of sale
- Consumers should be aware of the influence that brands hold to make informed choices
- Brands have become pillars of our identity and support systems, but it's crucial to see them in a positive light.
The future of shopping: what's in store?
- The pandemic has forced people to rely on online shopping for their dopamine hits
- Retailers have had to adapt and innovate to keep up with the shift in shopping habits
- The internet has given consumers more power and choice than ever before
- China leads the way in e-commerce, with half of everything bought online in 2021
Historical Shifts in Shopping:
- In the 16th century, personalized service came at a premium price
- The industrial revolution brought mass production but less personalization
- Superstores and out-of-town malls increased choices but still limited options
- The internet gave consumers more power and choice than ever before
The Rise of Chinese E-Commerce:
- China is the world leader in e-commerce, with over $2 trillion in online consumption
- Super app ecosystems give retailers intimate knowledge of their users' preferences
- Chinese consumers are more willing to allow data tracking than in the west
- Some Chinese tech firms use consumers' digital footprints to influence production
Western Retailers Play Catch-Up:
- Western retailers historically had little data about their individual customers
- Amazon wrote the book on individual customer data and uses it to maximize sales
- Some brands are cutting the Amazon cord to focus on direct-to-consumer selling
- Shopify allows anyone to set up their own online store and integrate e-commerce with social media
- The pandemic has accelerated the shift in shopping habits towards e-commerce
- China leads the way in e-commerce with its super app ecosystems
- Western retailers are playing catch-up by harnessing the power of their customers' data
- Shopify allows anyone to set up their own online store and integrate e-commerce with social media.
Make the Most of Your Digital Ad Spend with Rohan Sheth
In a recent conversation between Brad Weimert and Rohan Sheth, they discuss the best platforms for businesses to start paid advertising. They talk about their personal experiences with different platforms and give advice on how to start.
Platforms for Paid Advertising:
1. Facebook: Brad and Rohan agree that Facebook is a good starting point for businesses. It may have a steep learning curve, but it is easier to market to users who are actively searching for products.
2. Google and YouTube: Google and YouTube are great for intent-based marketing. However, lead costs and acquisition costs can be higher on these platforms.
3. Pinterest: Pinterest works well for audience building, especially in the female space. However, it is not seen as a conversion network.
4. TikTok: If businesses can get their hands on an ad account and take the time to learn it, TikTok has insane numbers. Education works well on this platform.
5. LinkedIn: While LinkedIn is great for B2B advertising, the costs can be ridiculous. Rohan suggests focusing on organic marketing on this platform.
Advice for Businesses:
- Brad advises businesses to run their own ads for at least 90 days before outsourcing it to an agency.
- Rohan emphasizes the importance of understanding the platform before investing in it.
- Both agree that businesses should focus on what works for them and their brand, rather than trying to emulate popular trends.
Businesses have a variety of options when it comes to paid advertising. Facebook, Google, YouTube, Pinterest, TikTok, and LinkedIn are all viable platforms, depending on the business's goals and target audience. However, it is important for businesses to understand the platform they are investing in and to focus on what works for their brand.
27 - Should Brands STOP Spending Money On Digital Ads? (with Dr. Augustine Fou)
In this episode of the b2c lead generation podcast, the question of whether brands should stop spending money on digital ads is explored. Ad fraud researcher and digital marketer, Dr. Augustin Foo, joins the hosts to discuss the evolution of digital marketing and the rise of ad fraud.
Foo explains that ad fraud has become a problem as programmatic exchanges have allowed bad actors to automate and scale fraud. This has resulted in unreliable analytics and billions of dollars going to fraudsters instead of being used to show ads to real humans.
Despite this, some brands continue to spend on digital ads without doing the necessary correlation to determine if the ads are actually driving sales. Foo suggests that many large brands use digital marketing for reach and frequency, similar to how they use TV and billboard advertising.
However, many of the low-cost ads that brands buy through programmatic exchanges come from fake websites with no real content. These sites use bots to generate page views and ad inventory to sell through exchanges.
Foo argues that brands should do their homework and determine if their digital marketing is actually driving incremental business outcomes before continuing to spend. However, many are stuck on a hamster wheel of quantity metrics and vanity metrics, and are hesitant to jump off.
In conclusion, while the answer to the question of whether brands should stop spending money on digital ads is not a clear yes or no, it is important for brands to do their due diligence and ensure that their digital marketing is actually driving sales before continuing to spend.
Watching Amazon: SMBs Can Gain From Coming Digital Ad Spending Transition From Google to Amazon
Amazon Making a Dent in Digital Ads
- Amazon is making a big impact in digital ads, with reports stating they are a threat to Facebook and Google's dominance.
- Brands are shifting their digital ad spend to Amazon, making Google and Facebook antsy.
- Amazon stands a great chance of changing the ad model to fit new smart devices.
1. Amazon's strong position as a marketplace is leading people to shop for ads on their site.
- Ads on Amazon are converting well, making them a significant threat to Facebook and Google.
- Brands are shifting their digital ad spend from Google to Amazon.
2. Teens are spending most of their money shopping on Amazon.
- Amazon is the preferred online shopping site for 47% of teens.
- The historical data of this buying generation will accelerate the ad spend into the Amazon model.
3. The location of Amazon's HQ2 is still uncertain.
- The decision was supposed to be made in Q1 2018, but there is still no news.
- Rumors suggest that it could be in the DC metro area, but the cost and competition could make it unlikely.
- Amazon's strong position in digital ads and online shopping makes them a significant threat to Facebook and Google.
- Teens are spending most of their money on Amazon, and this trend is expected to continue as they grow.
- The location of Amazon's HQ2 is still uncertain, but it could be in the DC metro area, Tennessee, or even Ohio.
Digital Marketing In 5 Minutes | What Is Digital Marketing? | Learn Digital Marketing | Simplilearn
Joey discovered the potential in digital marketing a few years ago and has since then seen various opportunities popping up in the field. Digital marketing is a cheaper and more effective form of marketing than traditional methods. In this article, we will discuss the main concepts of digital marketing, including content marketing, search engine optimization, social media marketing, email marketing, and affiliate marketing.
The first step in a digital marketing campaign is to create content based on specific search keywords that Google finds. This content can include blogs, videos, infographics, and case studies. The goal is to target a specific audience and make them interested in your products or services. To improve the ranking of your website, you need to optimize it using search engine optimization (SEO).
Search Engine Optimization:
SEO involves improving your website's ranking on search engine results pages by using various techniques such as creating a sitemap, getting backlinks from other websites, and optimizing your website's content. SEO helps to improve your website's visibility and attract more traffic.
Social Media Marketing:
Social media platforms such as LinkedIn, YouTube, Facebook, and Instagram can be used to promote your products or services. You can use images, videos, and other content to engage your audience and attract potential customers. By using social media marketing, you can increase your brand awareness and build a loyal customer base.
Email marketing involves sending emails to potential customers to promote your products or services. You can use e-mail marketing to nurture potential customers and guide them through the buying process. This helps to increase the chances of making a sale.
Affiliate marketing involves partnering with other websites to promote your products or services. You can offer incentives to these websites for every sale they generate. This can help to increase your brand awareness and attract more traffic to your website.
Digital marketing is an effective and affordable way to promote your products or services. By using techniques such as content marketing, search engine optimization, social media marketing, email marketing, and affiliate marketing, you can improve your website's visibility and attract more traffic. It is essential to stay up to date with the latest trends and technologies in digital marketing to stay ahead of the competition.