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It is easier to lose money with online advertising than to make money

It is easier to lose money with online advertising than to make money

Hi guys welcome to The Marketing Techy.
Today we are going to have a look at why people are losing a lot of money
with buying online advertising. Ok, let’s have a look at my screen here.
Basically you need to have leads to make sales to make profit.
Alright. So leads are inquiries about your service or your product. Some of
these leads will turn into sales and sales or a part of your sale will result
in profit for your company. That’s really the only reason to have a business. Okay,
so this is what we are after: leads. One way of generating leads would be online ads.
There are various other ways of generating leads and some in my opinion
are a lot better than others. Online ads in my own business and with most of my
customers: I see that online ads actually is not the bulk of where the leads come
from. In some cases up to about 50% of new leads for my customers or for companies
come from online ads. If you spend a lot on ads then that percentage will go up.
So if you’ve got a business and you are spending a lot of money on online ads,
you could get 80 or 90 percent of your leads from these ads. In my opinion
there are cheaper and better ways and in most cases I find that online ads count
for about five to about twenty percent of new leads for my customers and myself.
Okay so, online ads: you can buy online ads in a lot of different places.
The two biggest ones right now would be Facebook and also Google. So first
let’s have a look at Facebook. What does Facebook do well. Facebook knows
people so because Facebook knows people in the
sense of Facebook knows what my hobbies are, what music I listen to,
where do I live, when am I traveling, what company I work for, all these things
Facebook knows and I could target people with ads based on that. Google. Google does
something that we call timing very well so Google can get the timing really,
really well when it comes to placing an ad in front of someone. So when somebody
is searching for a specific product or service or something related to a
specific product or service then I could show my ads to them. So they could be
searching for a plumber in their area. I could show them an ad for plumbing
services. Okay so the timing in Google is really good. Google knows less about
people than what Facebook does and with Facebook getting the timing correct is a
lot harder than with Google. Some product or services will do
better on Facebook. Other products or services will do better on Google. Now
the issue is: especially on places like Facebook. Facebook will show you things
like: So you’ve posted something about your business, or a photo, or
something about a product. Then Facebook will usually show you something like you
could show this to 20,000 more people for X amount of money. Okay and that’s in
a lot of cases where it starts. Yes, you can show your ad on Facebook and Google
to a lot of people you could potentially show your ad to millions of people if
you wanted to and you have enough money. That’s unfortunately not the only thing
you have to do. Things you have to keep in mind is what your marketing
strategy, who is seeing this ad, are you targeting them correctly, are the correct
people that are actually interested in your product or service seeing your ad.
Otherwise you’re paying for this ad and showing it to people that’s costing
you money and they’re not actually buying. You would often find that
people are buying ads on one of these two platforms and they are not getting
leads or sales. Okay so yeah unfortunately the reality is: I see
companies that are wasting a lot of money with online advertising. Now the
question is: can it work? The short answer is: yes absolutely. If you monitor your ads. If you’ve got a good strategy. If you’ve got a really good
website and landing pages where you’re sending people from your ads. You could
get new leads. So new lead would be somebody either calling you and
inquiring about your product, so that you can actually follow up with them. Emailing
you or filling in the form on your website. Or actually looking at a product
page where they would be able to buy something directly off your website. All
right, so that’s a new lead and unfortunately what we’re seeing is the
trend is people are advertising right here and they’re never getting the lead
and obviously they’re also not getting the sale. Okay so there are spending a
lot more money on this side and not making the money back on the other side.
Allright so that’s a recipe for disaster. How do you do this well? You
look at your analytics. You track these ads. You make sure, that at least on a
weekly basis, you’re monitoring them. Seeing which people are clicking on them.
Which ads are doing better than other ads. Making decisions based on this.
Starting new ads. Stopping some of the older ads. Making sure your wording is
perfectly correct in all of your ads. Changing wording in these ads over time.
Changing photos. Making sure you’re using the correct photos. Making sure basically
that you’re getting the absolute most from these ads that you possibly can and
that along the way you are converting as many people as possible into actual
sales at the end. Okay, so yes, you can make a lot of money by sharing your product or
service to people at the correct time, but the flip side is you can lose a lot
of money if you’re not monitoring these and making sure your strategy is correct when it comes to buying ads online. I hope this helped. If you’ve got any
questions feel free to contact me or comment on the video. You can contact me on
Twitter or by email. I’m happy to answer any question
about this. I’ll see you for the next video. Cheers.

1 thought on “It is easier to lose money with online advertising than to make money

  1. What online advertising is working for you? Do you have any questions for me?

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