New signs point to slower than anticipated growth for global advertising spend in 2023.
This according to two new forecasts revealing much of the slowdown is fueled by economic uncertainty:
While it’s important to note that not all geographic regions or industries will respond the same — for example, entertainment, travel, and betting will continue to grow ad spend for 2023 — those of us that decide to cut back also need a plan to make the most of what we do invest.
In this article, we will explore several strategies you can put in place to help you navigate the uncertainty.
Put Automation in Your Rotation
Have you tried automating your ads yet? If not, the next year is a prime opportunity to try it out. Not only does it reduce the amount of time you’ll spend on ads, but automation also finds what works best without the need for intervention.
Google’s Performance Max campaigns, for example, extend automation and machine learning to your ads across all channels and inventory – from a single campaign.
And they’re having a big impact. From an average increase of 12 percent in conversion value (at the same or better ROAS) to finding new customers for you and optimizing your budget and bids across channels in real time, Performance Max is already showing lifts in impressions, conversions, and customers.
That being said, if you’re not ready for this robust of a solution, you might consider Google’s Responsive Ads for Search or Display. With these ad types, Google’s machine learning model tries out different combinations of assets to determinate what works best for your audience. This also allows you to focus your advertising spend in 2023 on preferred areas, and then switch things up if your data proves it necessary.
Finally, another cost-effective ad solution is Google’s new Creative Studio. What sets this tool apart is that it allows advertisers to reach audiences with creative that’s dynamically personalized for location, language, or context — with the ability to use hundreds of versions of a single display or video ad. Plus, assets can be shared out to Ads, Display and Video 360, and Campaign Manager 360 for activation.
Gather and Apply Your First-Party Data
If you’re feeling a bit shaky about advertising spend in 2023, another way to make the most of it is with first-party data. This includes all the information you collect about your customers on your own, rather than depending on third-party data from other websites or companies.
Not only is first-party data a more accurate reflection of your target audience (since it’s derived from real, actual customers), it’s also a collection of information about people who are already familiar with you and likely want to hear from you.
Plus, there’s the option of creating lookalike audiences for ads based on your own data, which – again – is likely a better representation of ideal buyers and clients.
Prioritize Existing Customers
Keeping the next year profitable will mean prioritizing your existing customers. It costs less to advertising to customers you already have than to acquire new ones, so to set yourself up for success it’s wise to create strategies around the “known audience.”
For example, ad retargeting may take center stage in 2023, given it can leverage behaviors such as those who have already purchased from you before or, better yet, your first-party data. If you have a list of customers who purchased your basic subscription package, why not target them with an upsell to the higher plan?
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Getting it Right in the New Year
We all want to be successful with our ad spend next year. It’s going to take some flexibility to navigate the uncertainty, but with these strategies you can make a real impact even if your investment is smaller. Try out automation, first-party data, and focusing on existing customers — you might just find these methods are a better fit for your brand no matter what the economy has to say about it.
Also, to learn how to leverage the tools and technologies needed to get the most of your digital advertising spend in 2023, check out Simplilearn’s Advanced Pay Per Click Certification course. Aligned with Micosoft and Google, and approved by OMCP®, this course will teach you everything you need to know to drive significant ROI through your paid marketing campaigns.