What happens when you initiate a paid ad on digital? Apart from the algorithms getting triggered across the webpages, and your banner getting displayed in front of your target audience instantly, there is nothing much other than a few click-throughs and some brand recalls if your ad gets connected well.
Unless your product comes under the FMCG category or you create paid ads for brand advertising, there is no reason for doing a paid ad, which on average brings about 6% CTR. Remember, when Procter & Gamble cut $200 million from digital ad spend, their reach was increased by 10%. Yes, you read it right. There are better ways to use your ad budget.
Now, the question becomes simple
Why should a marketing team spend lakhs and lakhs for a 6% CTR? There is a genuine possibility that the problem is somewhere else. Or maybe the very marketing team is conditioned to do the same thing again and again – first-order thinking. It is worth figuring it out so that you can fix the real problem and grow your business effectively at a good pace.
Even after huge spending, the loss is on both sides. Your ads will be stopped the moment your budget gets over. It can never be your digital asset, when you stop paying Google and Facebook, your ad will not be in the ecosystem at all.
Paid ads neither bring you results nor can be used as digital assets
What can be done?
A forward-thinking approach towards creating quality digital assets aka content can do wonders. Considering the digital transformation that’s happening, and will continue to happen, the growth potential that digital assets have is humongous.
Owned media can help you stay ahead in the long-term game and it would be a smart move to invest in it. The sooner you start, the better it is for your business.
On the flip side, the Customer Acquisition Cost through paid media is much higher and it will only increase as time progresses. A detailed article on why people continue to invest in paid online advertising is here.
As the volume of your owned media increases over time, your CAC drops down.
When you have assets that talk about your product and your brand, people naturally trust you, and eventually, the sales happen when they look forward to buying your product.
Do you want to build your video assets for your business?