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Advertising costs are skyrocketing - how will you adapt?

April 7, 2022

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Digital ad prices are skyrocketing, forcing founders to rethink their entire marketing strategies. For a start-up, this is a really tough time - with lean marketing budgets you need returns on those investments.

In this week’s Edit, we delve into combating the diminishing returns from online advertising. We explore how you can adapt and try new techniques such as:

  • Diversifying channels
  • Prioritising existing customers
  • Adapting to the loss of third-party cookies

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How will you adapt?

Advertising costs are skyrocketing across platforms. At the same time that digital ads are getting more expensive, they're also getting harder to target, creating big barriers to entry for start-up brands trying to find their first customers.

What’s happened? It’s another example of how the pandemic has changed how we do business. For most advertisers, pricing is the highest it’s ever been. What’s more, Zenith predicts global ad spend will expand by 5.7% in 2023 and 7.4% in 2024.

How can you adapt? You’re almost sure to gain more results if you allocate your budget strategically.

But don’t just take our word for it; explore how companies are rethinking advertising with this article by Axios.

Inspired? See how you can put this thinking into action with our top tactics today. See below 👇

Apply these tactics today.

Here are our top takeouts to apply to your business.

🔀 Diversify your channels

To reduce your reliance on advertising, diversify your channels and communicate directly with customers by email and owned channels. In addition, you can get more out of your marketing budget by using strategies that complement each other. For instance, content marketing and SEO could feasibly be separated; but if you invest in both of them together, each will help the other see better results. Wondering where to start with your organic content strategy? Here's a good place to begin.

🍪 Adapting to the loss of third party cookies

The removal of third-party cookies doesn’t change the fact that advertising works and has its place. There has always been a need to evolve your marketing strategy continually, but now more than ever, this is crucial. In an interesting turn of events, older marketing techniques may be on the return - think tv, podcast or physical adverts, in-person events and direct mail. It’s vital that you keep experimenting. Try different tactics, different content, and make sure you measure and compare the results at a revenue level.

🤝  Prioritise existing customers

You’re 40% more likely to sell to an existing customer than a new one. That’s why we recommend that in 2022 you can prepare for advertising uncertainty by prioritising retention and making your best customers even more valuable. Not only will higher customer retention increase your profits through repeated sales, you’ll also save money by not having to invest so much in customer acquisition.

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