A study from The Association of National Advertisers reports that only about 25% of your digital ad spend reaches real people. That means ad fraud by bots costs businesses $7 billion dollars annually.
Page Agency is committed to eliminating wasteful digital ad spend. We’ve cut out many sites that were once called popular advertising spots in order to focus on reaching real people, rather than better looking numbers. High numbers have been able to distract businesses and agencies from the massive waste involved. But not here.
Here are some ways you may be wasting away your budget.
1. You’re losing the battle to bots
Ad-fraud is a billion-dollar industry and the sites don’t have to invest in human labor; just traffic bots that mimic human behavior, cheating customers. Much of the fraud goes undetected. Advertisers are beginning to catch on, though.
Unfortunately, measuring isn’t enough to find out if something is wrong. To take bots out of the picture, use an ad fraud detection tool to monitor your AdWords and Bing Ads campaigns with AI.
2. Your targeting sucks
Poor targeting can result in big losses. With reach at 30% and targeting inaccuracies at 27%, some digital ad campaigns are seriously struggling. Without knowing where, when and to who to send your message, you’re burning through money. A survey on chief marketing officers in 2016, found that fewer than 20 percent of the audience reached by each of the CMOs was the right customer for the product. In digital advertising specifically, only 18 percent of the customers reached were shopping for the products.
This is where Page Agency comes to save the day. We look at various aspects of your target audience, including location, demographics, and where they live online (plus a bunch of other stuff).
3. Not calculating CLV
Customer Lifetime Value (CLV) is what profit has been made by a business for the period of a customer’s retention. It’s how you find out if the customer is worth anything, and if he/she is, what next steps to take.
You can’t beat CLV. This piece of intelligence that can be used all over an organization. It can even help with customer acquisition. We can tell you how much your business can afford to spend when acquiring new customers and work around that budget. This helps control your spend and keep you from making costly mistakes.