Table of Contents
- 1 Your advertising strategy plays a vital role in your promotional mix
- 2 Ultimate Online Advertising Guide
- 3 What is an advertising strategy in marketing plans?
- 4 Get Better Ad Responses
- 5 Calculating ROAS
- 6 WANT TO OUTRANK YOUR COMPETITIORS?
- 7 Setting Advertising Objectives in Budgeting
- 8 Facebook’s Campaign Planner
- 9 Media and Ad Programming Strategy
- 10 How to Select the Best Digital Marketing Agency
- 11 Executing the Advertising Strategy and Measuring its Effectiveness
- 12 Tracking Advertising Performance
- 13 Methods of Measuring Advertising Effectiveness
- 14 Application Illustration
- 15 Advertising Statistics
- 16 Pay-Per-Click (PPC) Advertising
- 17 Wrap-up for an Advertising Strategy
- 18 General FAQ
Your advertising strategy plays a vital role in your promotional mix
Your strategy in advertising should be to drive high-quality traffic to your website and capture leads. These leads will be nurtured with an omnichannel workflow.
Failed. A poorly thought-out advertising strategy is bound to fail. Although it’s hard to admit, you’re not the first one to fall victim to a bad advertising strategy and you won’t be the last one either.
Perhaps more companies should have listened to John Wanamaker, a 19th-century American merchant, who said: “I know that half my advertising dollars are wasted…. The problem is…I don’t know which half.”
So the question is how do you create an effective advertising strategy? Here are some thoughts main points to bear in mind when creating your own advertising strategy.
Did you know?
- Only 17% of marketers use landing page A/B tests to improve conversion rates. (HubSpot)
- 45% of U.S. Millennials use voice assistance when shopping online. (Statista)
During the advertising strategy planning, you must decide on an advertising budget and set specific objectives and how to select their creative strategy.
Here are charts from our friends at HubSpot.
It determines how the objectives will be accomplished. Advertising media and programming schedules are used to implement a creative strategy. The final step is implementing the strategy and evaluating its effectiveness.
At times your promotion and advertising strategy can be combined. For other organizations, they must keep these as separate marketing strategies. Your advertisement strategies may determine if you burn your money or make it!
The article will cover types of advertising strategy, have ad strategy examples, a Facebook ad strategy, and explain the Facebook ad strategy tool.
Here is a typical client sales funnel. There are industry benchmarks for conversions. But it is your real-time data that we use to optimize your marketing and sales funnel. With a customer data drive model, it is hard not to improve.
Before you can start an advertising program or any marketing campaign, you need to know your numbers. How are your goals and objectives?
Ultimate Online Advertising Guide
Learn how to generate leads, drive website traffic, and build brand awareness with online advertising.
If you want to create a successful advertising strategy then ask yourself: What is the problem that you want to solve, what are the people’s characteristics that you want to satisfy, and what do you want them?
What is an advertising strategy in marketing plans?
An advertising strategy is a plan to reach and persuade a customer to buy a product or a service. Your strategies of advertising require creative thinking and testing.
A practical product assessment, market definition, media analysis, and budgetary choices result in an excellent advertising plan, which is part of your ultimate marketing plan.
Your advertising creative strategies must be mapped to the buyer’s journey and your sales cycle.
Advertising is not always directed to the end-user.
Ad agency models are breaking. Pre-roll ads are useless. Measurement models are outdated. The ad industry lacks diversity. And the phrase digital marketing should be dumped.
The steps in developing an advertising strategy include:
- Identifying the target audience
- Determining the role of advertising in the promotional mix
- Setting advertising objectives and budget size
- Selecting the creative strategy
- Determining the media and programming schedule
- Implementing the advertising program
- Measuring its effectiveness
Estimating advertising’s impact on buyers helps marketing management decide advertising’s role and scope of ineffective marketing programs. Marketing management perception of what advertising can contribute to promotion objectives as an important influence on advertising’s role.
An advertising strategy of Amazon is different from an advertising strategy for a new product, like marketing automation software.
A study of the PIMS (profit impact of marketing strategy) databank identifies factors that determine advertising’s role in marketing strategy. The study also provides research support for several of the factors shown in Exhibit 1.
A sample of 798 businesses with at least 0.01% of sales on advertising and promotion. It was found that firms with higher ratios of advertising and promotion to sales display the following characteristics:
- Standardized products
- Many customers
- Small purchase amount
- Add-on services
- Sales through channel organizations and partners
- Premium price product
- Manufacturers contribution margin
- Small market share
- A higher ratio of sales from new products
The study describes existing relationships rather than indicating what should be but provides a useful guide.
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Gross Revenue from Ad campaign
ROAS = _______________________
Cost of Ad Campaign
For example, a company spends $2,000 on an online advertising campaign in a single month.
In this month, the campaign results in revenue of $10,000. Therefore, the ROAS is a ratio of 5 to 1 (or 500 percent) as $10,000 divided by $2,000 = $5.
___________________ ROAS = $5 OR 5:1
Every dollar that you spend on its advertising campaign generates $5 worth of revenue. When did last calculate this?
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Setting Advertising Objectives in Budgeting
Exhibit 2 shows alternative levels for setting advertising objectives. The most general level (exposure) toward the most specific level (profit contribution).
The objectives are increasingly closer to the purchase decision. For example, knowing that advertising has caused a measurable increase in sales is more useful to the decision-maker.
In contrast, saying that advertising exposed a specific number of people to an advertising message. The question is which of the objectives in Exhibit 2 or link to purchase behavior.
To what extent will people who are more aware of a brand be more likely to purchase it? Exposure and awareness can be measured whereas the sales and profit impact of advertising is very difficult to measure. Attitude change measurement is difficult but feasible.
The value of exposure measures of advertising effectiveness is subject to much more debate. They are more useful in guiding media allocation decisions than engaging the value of advertising to a business.
I’ve discussed marketing budgeting methods before and budgeting methods for the advertising budgets are no different. Budgeting guidelines indicate how the following factors are related to advertising and sales promotion expenditures for a company are:
- Market share
- New products
- Market growth
- Utilization of company capacity
- The unit price of a product
- Product purchase mix
- Product pricing
- Product quality
- Breath of product line
- Standard versus custom products
When used in conjunction with marketing management experience, the guide can indicate current ad spend with PIMS norms.
The creative strategy guides the advertising campaign.
Two factors affect strategy selection:
- The campaign is intended to maintain or to change market conditions
- The campaign will communicate information or imagery and symbolism
Maintenance and reinforcement strategies are used to support an established brand.
A strategy for changing market conditions may:
- Reposition a brand
- Expand the market for the brand
- Launch a new product
Information messages communicate product benefits or are image messages that seek to either reinforce or create change using symbolism and imagery.
The Wall Street Journal asked several of the advertising Industries, top executives, their opinions on the best and the worst advertisements.
And Infiniti automobile series of Zen-inspired nature scenes featuring pussy willows and rocks. Some of the highest-rated and lowest-rated ads were created by the same agency. Television dominated the high ratings, but a print and billboard campaign also received high ratings.
With today’s digital environment, it’s easy to set up a Facebook ad campaign or Google AdWords campaign and see your results. The hard part is developing an intriguing creative copy and sales funnels to support those advertisements.
Creativity can enhance the effectiveness of advertising by selecting a unifying concept that binds various parts of an ad campaign.
Advertising and digital agencies, who typically receive 15-20% of corporate clients’ gross billings or experts in designing creative strategies.
They may design unique themes to position a product or company in some particular way. Or use comparisons with competition to enhance the company’s brands.
Choosing the right creative theme for the marketing situation can make a major contribution to the success of an ad program.
We typically use multi-variant tests and experiments to evaluate creative and online advertising approaches.
Moreover, these tests and experiments are more of an art than a science. The data from the advertising online platforms make it more of a science than it has been in the past.
Facebook’s Campaign Planner
Campaign Planner is a standalone tool for media planners to draft, compare, share and buy media plans across Facebook, Instagram, and Audience Network.
Campaign Planner lets you:
- Create and save reach and frequency predictions
- Create multiple versions of a plan, and compare them to find the best settings for your campaign
- Share your plans in various formats including email, a preview link or .csv format
- Buy your plan in the updated Ads Manager
Media and Ad Programming Strategy
A company’s digital marketing agency should guide media and programming decisions. The digital agency has the experience and technical ability to match media and programming to the target audience. The choice of media, timing and programming are influenced largely by two factors:
- Access to target audiences
- Cost of reaching the target groups
Let’s say management is interested in communicating with business executives through online media. Some possible advertising platforms may include Facebook ads and Google AdWords.
The costs are determined by the search traffic volume, competitiveness of the keyword, and the quality of the ad score. The higher the quality score the lower the cost per click.
In deciding which medium to use, the company should evaluate the cost per exposure to the characteristics of subscribers or users.
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Executing the Advertising Strategy and Measuring its Effectiveness
Before an advertising strategy is implemented, it is important to establish criteria for measuring its effectiveness. Advertising spends can be wasted if firms spend too much or allocate expenditures properly.
Measuring effectiveness provides useful feedback for future advertising decisions. And the quality of advertising can be as instrumental as the quality of getting results.
Tracking Advertising Performance
Assessing advertising’s impact on sales is difficult because other factors also influence sales and profits.
Most efforts to measure effectiveness focus on objectives such as attitude change, awareness, or exposure. Comparing objectives and results helps companies decide when to stop or alter advertising campaigns.
The advertising strategies of Nike and the advertising strategies of Apple are great examples of B2C successes. They are worth reviewing the advertising strategies over the years.
Methods of Measuring Advertising Effectiveness
Several methods can be used to evaluate advertising results. Analysis of historical data identifies relationships between advertising expenditures and sales using statistical techniques such as regression analysis.
Recall test measures consumers’ awareness of specific ads programs by asking questions to see if people remember an ad.
Longitudinal studies track advertising spending and sales results before, during, and after an advertising campaign.
A controlled test (aka A/B testing) is a form of a longitudinal study in which extraneous effects are measured and or control during the test. Test marketing can be used to evaluate advertising effectiveness.
The effort/results model uses empirical data to build a mathematical relationship between sales and advertising efforts.
An effective method for measuring advertising effectiveness is the use of consumer panels and cities with cable TV. A panel is a group of consumers that agree to provide information about their purchases on a continuing basis.
Point-of-sale scanning of the purchases of panel members provides data on the brand purchase, prices, and other information. Samples of consumers can be split into groups exposed or not exposed to advertising on cable television.
Using equivalent samples, the influence on sales of factors other than advertising can be controlled. The difference in sales between the control and the experimental groups over the test.
Measure the effects of advertising. This technique is appropriate for certain types of frequently purchased consumer products such as health and beauty aids and food products.
Advertising research is not restricted to measuring the effect. Research can be used for various activities and advertising strategies. These include generating and evaluating creative ideas and concepts, and pre-testing concepts, ideas, and specific ads.
But we develop Facebook advertising campaigns, we may be running up to 48 tests to determine the right ad set.
It can be difficult to evaluate single ad effectiveness. Therefore, we concentrate on assessing campaigns in particular business areas such as SaaS software. The model is implemented at the beginning of the creative development process.
Effectiveness involves pre-testing and post-introduction tasks. A company’s owned marketing database, monitoring changes by tracking studies, conducting buyer impression studies, and sometimes we use focus groups.
Note the early use of the campaign tracking benchmark in the pre-testing of advertising concepts. This approach uses evaluations and adjustments before and during the campaign.
Setting objectives are critical to determine the effect of advertising and to decide when to stop or alter a campaign. Marketing management should follow through by tracking results to measure effectiveness. An advertising strategy is rarely constant over time and is adjusted to changing conditions.
Exceptional advertising attracts customers, improves brand awareness, and generates revenue. These advertising statistics will help you understand how customers view paid media and what advertising tactics are working for businesses — like yours — that are looking to attract new customers.
- In 2018, U.S. advertisers spent nearly $50 million on programmatic digital display advertising. (HubSpot, 2020) Across social channels, photo and imagery posts are the most-used content type to increase audience engagement. (HubSpot, 2020)
- 68% of marketers stated that paid advertising is “very important” or “extremely important” to their overall marketing strategy. (HubSpot, 2020)
- 33% of marketers use paid advertising to increase their brand awareness. (HubSpot, 2020)
- The Google Display Network reaches 90% of Internet users worldwide. (Google, 2019)
- The company Purple saw a 34.6% boost in brand consideration for their mattress orders by using Google Ads audience targeting on YouTube. (Google, 2020)
- By using Google Ads, Schmidt Naturals saw a 48% uptick in brand awareness for its vegan products on YouTube. (Google, 2020)
Pay-Per-Click (PPC) Advertising
- The average cost-per-click (CPC) in the legal industry is $6.46 and the most expensive legal industry keyword CPC is $1090. (HubSpot via Ahrefs and WordStream, 2020)
- The average cost-per-click (CPC) in the medical industry is $2.62 and the most expensive medical industry keyword CPC is $90. (HubSpot via Ahrefs and WordStream, 2020)
- The average cost-per-click (CPC) in the marketing industry is $3.33 and the most expensive marketing industry keyword CPC is $165. (HubSpot via Ahrefs and WordStream, 2020)
- The average cost-per-click (CPC) in the software industry is $3.80 and the most expensive software industry keyword CPC is $95. (HubSpot via Ahrefs and WordStream, 2020)
- The average cost-per-click (CPC) in the real estate industry is $2.37 and the most expensive real estate industry keyword CPC is $95. (HubSpot via Ahrefs and WordStream, 2020)
- The average cost-per-click (CPC) in the home improvement industry is $6.40 and the most expensive home improvement industry keyword CPC is $320. (HubSpot via Ahrefs and WordStream)
Wrap-up for an Advertising Strategy
Advertising strategies are developed in the following steps:
- Identifying the target audience
- Determining the role of advertising in the promotional mix,
- Indicating advertising objectives and budget size,
- Selecting the creative strategy,
- Determining the media and programming schedule,
- Implementing the advertising program
- Measuring its effectiveness.
Advertising objectives may range from audience exposure to profit contribution targets. The PIMS study indicates useful guidelines for Budget analysis.
Digital marketing agencies offer specialized services for developing creative strategies, designing messaging copy, and developing media and programming strategies.
You don’t need Nike or the advertising strategy of Apple to reach your sales goals.
Are you not getting the results you had hoped for with your current marketing agency?
Let the experts at Matrix Marketing Group help you generate more web traffic, convert more leads, and close more sales.
We provide a full array of digital marketing services, including SEO services, content marketing, social media, PPC advertising, and website design services. These digital marketing services are typically paired with customer relationship management and marketing automation platforms.
What components do you use to develop your advertising strategy?
And don’t forget to share this with a friend.
What is an advertising strategy?
An advertising strategy is a plan to reach and persuade a customer to buy a product or a service.
How does your advertising strategy play a vital role in your promotional mix?
Advertising strategy development begins by identifying and describing the target audience. Next, marketing management should establish the role and scope of advertising. They must decide on an advertising budget and set specific objectives and how to select their creative strategy.
What do you set advertising objectives and your advertising budget?
The most general level (exposure) toward the most specific level (profit contribution). The objectives are increasingly closer to the purchase decision. For example, knowing that advertising has caused a measurable increase in sales is more useful to the decision-maker.
What are some advertising strategies?
7 Types of Advertising Strategy
Ad Strategy and Tracking. The practice of tracking the performance of an advertisement according to factors such as media, target audience, context, and behavior.
1. Advertising Campaign.
2. Advertising Channels.
3. Advertising Copy.
4. Advertising Jingles.
5. Cause Marketing.
6 Celebrity Branding.
7. Comparative Advertising.