Have you noticed that it costs more to advertise online recently? If this is causing you a bit of a holiday headache, you’re not alone! So, what’s going on? In this week’s Tech News Tuesday, we’re taking a look at advertising costs and why you might be seeing an increase.
It’s That Time of Year
There’s more competition for your audience around the holidays
It’s that time of the year when online advertising costs on some platforms increase. Remember that online advertising is an auction, so when there’s more competition for your audience costs increase.
The Impact of Elections on Ad Spend
We expect this around the holidays, but a recent report suggests that local advertising in the U.S. is expected to increase 8.5 percent next year, largely because of political and issue ad spending.That same report also reveals that political advertising is expected to impact virtually every market in the U.S. in 2024, even those not typically in the political spotlight. It’s not just the presidential and congressional campaigns; it’s also “issue-based advertising.” Now, if we take political advertising out of the equation, local advertising in the U.S. would see a more modest 2.2% increase.
Online advertising costs are expected to increase 8.5% next year
Increased Competition Creates Higher Prices
So, here’s the kicker for small businesses looking to advertise online – it’s getting more competitive and costly by the minute. The advertising landscape has been shifting. Over the past decade, traditional advertising channels like print media, radio, and TV have been losing ground to digital platforms. The pandemic accelerated this shift, pushing more businesses to hop on the online advertising train. As digital advertising becomes increasingly competitive, small businesses need to invest in creative and data-driven strategies to stand out.
Having a Strategy in Place is Key
It’s more important than ever to have a strategy and measure your return on ad spend so you are investing wisely
Online advertising can still be a great investment, but it’s more important than ever to have a strategy and measure your outcomes so you are investing wisely.
Nurturing your own list of prospects and customers using direct email marketing is also a must have in this environment. Owning your own list of contacts and growing that list is like having a golden ticket. It’s one of the best ways to build a relationship with your audience that is not dependent on the platform’s algorithm changes and increased costs. As the saying goes, “The money is in the list.” So, don’t neglect building those email relationships, and you’ll be in a strong position to connect with your audience.
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