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Why You’re Probably Underspending on Your Digital Advertising

by | Mar 4, 2021

Advertising, a tricky one, right?

If you’re like most businesses it feels so difficult to track if your ads are working. And worst still, you’ve no real idea what you should be investing in them.

 Most business owners know they need to advertise. That’s a given. 

The problem is they don’t know which of their adverts work and how to maximise their investment. It feels out of control, alien. And no business decision-maker likes to feel out of control.

Finding control of your advertising

We work with many businesses who come to us in this exact frame of mind. Their marketing feels out of control. It’s a gamble. And they don’t like it.

One such organisation was a small business manufacturing and selling high end clothing. They’d used Google Ads and Facebook Ads to try and drive traffic to their e-commerce website.

However, sales were volatile and unpredictable. Some days they felt really good and other days they seemed unusually bad.

They didn’t know what traffic was good traffic and they didn’t have a clue how to monitor conversions from their advertising. They were wholly reliant on their website but it all seemed like feast or famine.

We put some ads in place that not only allowed them to track sales, but also allowed them to see how much each of those sales cost in advertising. Clear accountability on results.

As it turned out for every seven pounds they spent on advertising they made a sale averaging fifty three pounds. In other words, for every one pound invested in advertising they made seven pounds and fifty pence back!

Now, if I walked up to you in the street and offered you seven pound fifty in return for every one pound you gave me, you’d take it. They were happy to be able to see the numbers.

Prior to speaking to us they were spending thirty pounds a day on advertising, nine hundred pounds per month. Not an insignificant number. With their new ads that would return them a very profitable six thousand seven hundred and fifty pounds per month.

The problem was they had targets of thirty thousand pounds revenue per month. It dawned on them they were spending five times less than they should on advertising. Now they had the maths in-front of them, it didn’t feel like a gamble anymore. They could scale their business with far more certainty than ever before.

By being able to track their ads, link them to their sales and monitor them, they’d regained control. They could make business decisions based on their new marketing know how.

See the numbers that matter

Imagine the difference if you could see your advertising this way. For every one pound spent you know how many new signs up you’ll get, or how many new members, or exactly how many sales.

Imagine the clear decision making you’d have if you could turn your marketing on like a tap and dictate the pressure of the water. That is possible.

Take a look at your ads. Stop thinking about them in terms of likes or clicks and start thinking about what’s directly attributable. Be results focused.

Think about your revenue targets. Will your advertising spend realistically help you achieve them? Or are you just dabbling with ideas that have zero accountability?

If you’d like to know more about Marketing That Sells book a Discovery Call today. We’d love to talk to you about results focused marketing.

Codebreak - Stay Hungry - Direct Response Marketing

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Andy and Joel, co-founders of Codebreak