We’ve all seen it. You’re bored one day, and you start thinking, “Hmm, maybe I need a new phone.” You get on Google and explore a few models you’re interested in. You’re just browsing, 15, maybe 20 minutes. You put a phone in your cart, but you’re not quite serious about buying yet, so you close the page before you get to the checkout. You open Facebook, start scrolling and the next thing you know phone ads start popping up. It’s the exact phone you wanted, but this time the ad says there’s a sale. 20% off? How could you pass up 20% off? You click the ad, purchase the new phone, and somewhere a marketing strategist is celebrating. You got what you were looking for and bumped up his conversion rate. Everyone is happy.
This exchange is a great example of how effective targeted marketing can be. We know that advertising can sometimes be a hit or miss. If you throw out a product to a general audience, reception rates can vary depending on your product. That’s just the reality of running a business, some people like your product and some people don’t. What if you were able to eliminate those who had no interest in your product? What if you were able to invest your advertising budget solely into your target market? Luck has nothing to do with it anymore.
Targeted marketing has revolutionized the way businesses advertise online. With Facebook and Google Ads offering the ability to target an individual by their specific needs, likes and dislikes, the value of your lead goes up tremendously. You no longer have to accept the fact that you are wasting part of your budget on leads with no potential for purchase. Instead, you can do almost the exact opposite and invest in remarketing, which consists of placing ads in front of a defined audience who have already browsed your website for a specific product. Remarketing allows you to invest in customers who have the most potential for purchase, giving you the most bang for your buck.
The truth is when it comes to setting an advertising budget, it all comes down to crunching the numbers. How much money can you waste on dead end leads in order to make a sale? Would you be willing to spend a little more on targeted ads if it meant you could cut out a chunk of your profitless advertising? If this is you, it might be time to update your advertising efforts. Why show 22-year-olds an advertisement for a boat they can’t afford to buy? Stop wasting your time trying your luck with an ad campaign. This year invest in targeted marketing.