Most new companies start off operating on tight margins. The costs associated with starting a business from scratch can be quite daunting, and many inexperienced entrepreneurs have found themselves overwhelmed by just how expensive their first year in business eventually proves. As such, it’s critical for business owners to prioritize their investments early on –– and ensure every penny they spend is done so responsibly. That leads us to the question of the day: is it wise for a new business to implement digital advertising? Below, we’ll examine four key factors and explain why (or why not) investing heavily in paid advertisements is a smart play:
Finding the Right Platform
In truth, there are multiple forms of online advertising, and they cater to different needs. Some businesses decide to pursue pay-per-click (PPC) advertising through a search engine, while others decide to place their ads on other websites. Before you make any decision on digital advertising as a whole, it’s important to determine which payment plan and content type suits your company.
Often, how much time your team can dedicate to improving and managing your ads is just as important as how much money you’re willing to invest. Indeed, PPC ads require constant attention and adjustment to remain effective. Also, it’s critical to monitor the content on websites where your ads appear. If the articles don’t have a connection to your product or service in some way –– you’ll probably struggle to glean a significant return on investment for those ads.
Before you can begin to build an ad campaign with any alacrity, you first have to create appropriate and compelling landing pages on your own website. Remember, digital ads aren’t the final step in the sales process; instead, they act as a gateway to steer potential customers toward content offers or an ecommerce store. It doesn’t make any sense to invest in ads if you’re not also prepared to set aside time and resources to construct complementary landing pages for them.
What your company does –– and what type of product or service you offer –– can have an effect on how much your ads cost. In PPC advertising for instance, one major factor to determining ad cost is the keyword with the ad itself. Naturally, the more sought-after the keyword is, the more you’ll have to pay per advertisement. For example, an ad devoted to an obscure product like a “sodium fluoride tube” will be less expensive than an ad for a more common term like “health insurance.” Depending on your line of work then, you may not have the budget to compete with the heavy hitters in your industry right away. Instead, it may prove more cost-efficient to adopt other marketing techniques like SEO or social-media engagement.