Advertising is an essential part of marketing your online business, but it can become expensive. Before you forge ahead with an advertising strategy that will see you part with much-needed cash for your business, here are three great tactics you can employ to reduce your advertising costs today:
1) Research where your customers hang out
Ever been advised to advertise on Facebook by someone who has had massive success in doing just that? We’ve all been told that more than once. But the reality is that there is no one solution for every business.
The key to successful, low cost advertising is to do your research first. If you can understand as much as possible about your target customer, and where they hang out online, it means that you’ll be advertising to a much more appropriate audience (thereby reducing your overall advertising
This SlideShare [or infographic if you prefer that version] outlines the demographic profile of the major platforms:
If your target audience is female, for example, you can see that they dominate Twitter and Pinterest.
Here’s what to do:
- Start by writing out a detailed profile of your ideal customer. Think
about their demographic, and think about what they do in their spare time.
- Think about how they interact with people in their lives: family, friends, and even work associates.
- You’ll start seeing a clearer picture about who you plan to advertise to. Once you have a detailed profile, you can begin looking online to see where they hang out:
- Do they regularly post to forums?
- Are they on cutting edge social media platforms, or are they into the more mainstream?
- Do they rely heavily on search engines for their information, or are there websites they are particularly loyal to?
The more research you do, the better your advertising campaign is going to perform.
2) Target methodically
Even when you’ve gone to the trouble of figuring out where your ideal customer hangs out online, don’t let your work stop there. Use your ideal customer profile to put in place some extremely detailed targeting when you launch your advertising campaign.
Target specific celebrities or gurus your customer followers, online magazines or blogs they read, or retailers they like.
Here’s what to do:
- Fully research the targeting options on your chosen advertising platform. Some platforms will give you better options than others (Facebook, for example, having acquired such detailed information on their user base, can give you a huge range of options about your customers
preferences and likes)
- Narrow down your targeting until you are advertising to a very small, very specific group. Not only will this help your testing efforts (see point 3), but it will also reduce the amount you are spending as you’ll only be advertising to a very small but highly targeted group of people.
3) Test repeatedly
Always track your advertising campaign performance, and test repeatedly to improve your results. At the very minimum, you should understand exactly what your ROI is for each dollar you are spending on your advertising, and testing will allow you to work on improving this.
Here’s what to do:
- Have a small budget set aside for testing very small campaigns. When a campaign is successfully, increase your budget to expand your campaign.
- Try testing a variety of different variables in your campaign to see what impact they have on the overall performance:
- Different images
- Headline text
- Landing pages
Keep repeating your testing until you start to see an improvement in your ROI. The more you test, the better your campaign will perform in the long run.
These are just three of the ways in which you can improve your advertising performance and reduce your overall advertising costs. In such a competitive online environment, the time and money you spend doing this can sometimes mean the difference between success and failure. So before embarking on your next advertising campaign, remember to do your ground work. It could make a fantastic improvement to your business.
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- Three Ways to Reduce Your Online Advertising Costs - February 14, 2015