Digital Advertising's Skyrocketing Costs: 3 Strategies to Stay Ahead

Digital advertising spending is skyrocketing, expected to hit €676.8 billion by 2024, marking a 78% jump since 2020.

Alongside this increase, the cost to advertise on big platforms like Facebook, Google, and YouTube has also surged.

Facebook's advertising cost per 1000 views (CPM) jumped by 89% in 2021, and the cost to advertise on Google and YouTube went up by 108%.

But what's fuelling this steep climb?

The answer lies in competition. An ever-growing number of businesses are turning to platforms like Facebook and Google to reach their customers, driving up costs in the process.

So, how can businesses adapt to stay competitive without continuously raising their marketing budgets?

‍Let's look at 3 strategies to stay ahead.

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Embrace Customer Feedback to Forge Deeper Connections

In an era where customer loyalty is gold, building and nurturing relationships with your audience has never been more critical.

Opening up direct lines of communication and actively listening to your audience offers invaluable insights that can guide your marketing strategies, and overall product development. This can be done through surveys, feedback forms, popups or just picking up the phone.

A loyal customer base not only improves lifetime value but can also enhance your brand's resilience against market fluctuations.

Learn what they want, align with their needs and in return, you will have more loyal customers, better retention and wont have to spend so much to acquire new customers.

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Invest in Conversion Rate Optimisation (CRO)

With the cost per visitor reaching new heights, ensuring that your website visitors convert into paying customers is paramount. CRO is no longer a nice-to-have—it's a must. By optimising your website, you can significantly boost your conversion rates, making every website visit count.

CRO is about using data to identify where your customers are dropping off and then implementing solutions that drive conversions. It involves testing different elements of a website, like layout, content, and navigation, to determine what works best.

By continuously testing, and using the results to make decisions, you get to learn what works (and do more of that). CRO removes the guess work and guides you in the right direction.

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Diversify Your Marketing Channels

Don't put all your eggs in one basket. In an environment where paid media costs are surging, integrating a mix of marketing channels can reduce dependence on any single platform and mitigate risks.

Consider bolstering your content marketing, SEO, influencer collaborations, and even exploring emerging platforms to reach your audience through multiple touch points.

Each channel offers unique advantages and reaches different segments of your audience, creating multiple touchpoints for engagement and conversion.

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Looking Ahead

The digital advertising landscape is evolving rapidly, with costs likely to continue rising as competition intensifies. By focusing on building stronger customer relationships, optimising conversion rates, and diversifying marketing channels, businesses can navigate these challenges and emerge stronger.

Embrace these strategies to maximise your digital advertising effectiveness and ensure a healthy ROAS, even in a high-cost environment.

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Accelerate your growth in 2024

Interested to see how CRO can unlock growth for your business? Book a free strategy session with us here.

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