Jake Newby and Knute Fosso, both seasoned paid media experts, dive into the whirlwind of the current advertising landscape. They discuss rising CPMs and the challenges posed by an election year, highlighting how competition affects ad prices. Innovative strategies, including AI in ad creative and platform diversification, are shared for optimizing campaigns. The duo emphasizes the importance of user engagement on platforms like Facebook and YouTube, while also offering insights into adapting to evolving ad policies and learning from successful marketing figures.
Rising CPMs and increased competition make effective media buying challenging, especially during politically charged election years with heightened ad demand.
Shifts in consumer purchasing behavior underline the importance of diversifying product offerings to include more affordable items that resonate during economic constraints.
Engaging ad creative and leveraging data analysis are essential for optimizing campaigns, as they can significantly impact impression costs and overall performance.
Deep dives
Challenges in Current Media Buying
Media buying is becoming increasingly difficult due to various market pressures, such as rising costs and competition. Political spending is anticipated to significantly impact advertising costs, particularly during election years when demand for ad placements surges. For instance, it was predicted that political spending on social media would reach approximately $14 billion, contributing to an overall increase in advertising rates. Additionally, promotional spending peaks during the fourth quarter as many businesses allocate more than half their budgets for Black Friday and holiday promotions, further complicating the media buying landscape.
Rising CPMs and Their Implications
Cost per thousand impressions (CPM) continues to rise each year, making it a crucial metric for media buyers to track. As demand rises for ad space, the overall cost to secure impressions goes up, leading to tighter margins for advertisers. Experiences shared by media buyers indicate that CPMs can be heavily influenced not only by market trends but also by external factors like political climates, which distract consumers and affect their purchasing mindset. For instance, as political ads flood social media, the baseline for acceptable CPMs increases, making organic sales harder to achieve.
Shifts in Consumer Behavior and Product Pricing
Consumer purchasing behavior is shifting in light of economic constraints, leading to price sensitivity and changing preferences for products. Recent trends indicate that lower-ticket items, such as digital information products, are experiencing a resurgence, while higher-priced supplements struggle to perform. The data suggests that media buyers are increasingly leaning towards diversifying their offers to include more affordable options, such as products ranging from $27 to $47, which might attract consumers more effectively at this time. This shift highlights the importance of adapting marketing strategies to align with consumer sentiments and economic conditions.
Utilizing Creative Strategies to Compete
Ad creative plays a vital role in ensuring effective media buying, especially in a competitive marketplace. Media buyers are encouraged to produce a greater volume of creative content to test which variations resonate best with their target audiences. It’s essential to create engaging, positive experiences to achieve better costs per impressions and conversions. Additionally, interacting with consumer comments on ads can foster organic engagement, making the ad appear more favorable, thereby enhancing overall advertising performance.
The Importance of Adaptability in Media Buying
To navigate the increasingly challenging landscape of media buying, advertisers must remain adaptable and open to new strategies. A focus on leveraging data analysis and AI-driven tools can enhance campaign effectiveness, especially in optimizing ad creative. Furthermore, diversifying advertising channels can open new opportunities for reaching consumers, as traditional platforms face saturation. Engaging with affiliates and product owners to foster collaborative relationships can also lead to enhanced performance metrics, ensuring sustained success despite market fluctuations.
Paid media is a whirlwind right now - CPMs are rising, traffic has declined, we are in an election year, consumers are distracted, etc... There is a lot happening that is making paid media difficult. So, what can we do about that?
Join ClickBank host Thomas McMahon as he sits down with paid media experts Jake Newby and Knute Fosso to discuss the current landscape of paid media and what media buyers and agencies can do to set themselves up for success despite the current hurdles.