Paid ads: are they worth it?

Sep 10

Because you asked, we discuss.

Let’s be real, social media marketing over the last 18 months has been one hell of a rollercoaster. When we look back we can see that it started in 2020 with the Covid lockdowns. Businesses that weren’t yet looking closely at e-commerce started to take it very seriously, and for good reason.

We saw hospitality businesses pivot to take away and delivery models. We saw brick and mortar retailers move to an online model. We even saw beauty salons becoming storefronts to claw back some of their losses.

Couple this with the Apple iOS rollout in 2021 which has disrupted analytics and reporting and you get the picture: it’s more competitive than ever, and it’s more challenging than ever to rely on social media advertising (as in paid social ads) to grow your business.

It’s no wonder small business owners are asking the question: are paid ads still worth it?

Of course, we’re biased. Yes, the cost of advertising on social has increased. Generally speaking. Of course there are some businesses who haven’t been impacted all that much but by and large, it’s more expensive now, and less reliable.

But the benefits still far outweigh the challenges:

1. You can quickly reach more people.

When you’re starting or scaling a business, it’s a numbers game. You need to be seen to be heard. Social media is where people are spending their time. Australians spend 12 hours per person per week on YouTube, 8 hours on Facebook, 7 hours on Instagram, 6 hours on Snapchat and 4 hours on Twitter. So if you want to be visible, social media is still a GREAT way to go.

2. It’s cost-effective.

Yes, even since the price increase, online advertising is still very affordable. You can start advertising on Facebook for as little as $10 per day and increase your budget as you grow. You can analyse, test, and streamline to maximise your return on investment.

3. It works fast.

Some marketing techniques - especially more traditional techniques - take time to see results. But paid advertising generates interest and leads pretty much straight away. Generally speaking, it’s pretty quick to start a campaign. Once the content is created, you can launch across multiple platforms almost immediately.

4. You have more control.

You’re able to monitor key metrics such as cost-per-click, site traffic, bounce rate, impressions, conversions, and even cost-per-conversion. This allows you to learn from the data and adjust your ad as needed.You’re also able to update, change, or remove ads instantly. You can run a last-minute sales ad and then take it down when you run out of stock.

5. It’s specific and targeted.

With paid ads, you’re able to target specific customers when you use data collected by a social media platform. You can run 4 different ads that target 4 different types of customers. Each customer only sees the ad that is most relevant to them. This strategy allows you to get your company and brand in front of potential customers. And, since most advertising platforms only charge you per click, you’re only paying for successful ads.

So the question isn’t so much: is it still worth it? It’s, how do I make social advertising work harder for my business? And now you’re talking! If you’re up for the challenge, we’d love to help you take things to the next level with these three focus areas:

Be savvier
Be leaner
Be better(er)

Be savvier: When we talk about being ‘savvier’ we’re really talking about starting to work ‘with’ the algorithms, not against them. Many businesses are still employing outdated organic and paid strategies. So, start by taking an objective and critical review of what you’re doing and ask yourself the question: is this working?

Read our blog on how to improve your Instagram results.

One thing pretty much all businesses can do to improve their Return On (Social Media) Investment is prioritise video content. Simply pivoting from photos (stills) to videos will give you better results in both the paid and organic side of your strategy.

Being savvier also means sharpening your storytelling pencil. If you’ve not yet explored this as a strategy to create a point of difference, you’re missing opportunities. It’s time to revisit your purpose and your ‘why’ for being in business.

Question for your homework: how can you use video to tell your story and create a stronger point of difference in your market?

Over the six weeks build a plan for creating more video content. If you’re unsure where to start find content creation partners that can help you.

Be leaner. Every dollar counts. It’s time to call to account where your money is going. Get clear on the costs at each level of your funnel and then optimise like crazy. Challenge your results. Don’t be ok with same-same results. It’s the time to strive for more.

Again, work with the algorithm and test new channels and ad types to see whether they perform better.

Be better. It’s competitive out there so it’s time to level up your game. Which means being more competitive. Start looking more closely at what your competitors are doing. What ads are they running? What messaging are they using? What content are they sharing? When do they go on sale?

Set up systems that help you keep an eye on what’s going on so you can make informed decisions about how you position yourself going forward.

Social media may be more challenging than ever, BUT, it’s still a very effective tool. Used well it delivers bottom-line results better than most other channels. Your 6 week challenge, should you choose to accept, is to step things up. You’re going to need to dig deep. It’s going to demand your all. The winners will be the ones who push the hardest.

Don’t forget, we’re here to help you at each stage of your journey.

Set up systems that help you keep an eye on what’s going on so you can make informed decisions about how you position yourself going forward.

Don’t forget, we’re here to help you at each stage of your journey.

Rachel Callan