Should I invest in advertising or not?
Is it necessary to have a large company to invest?
Why should I do it?
First of all, it is important to make it clear that when the subject involves financial expenses, it is never easy. However, there is a big difference between an expense and an investment . We should consider it an expense when there are no defined goals for each action.
We have already written an article on our blog where we talk about 4 reasons to invest in social media if you have a business . When well-managed, social media is also a real asset for a company that adds reputation and authority, however there are still companies that do not have this mentality.
In this article, we present 10 reasons why your company, even a small one, should invest in advertising .
1. A FACEBOOK PAGE IS NOT ENOUGH
A Facebook page is not enough, and neither is a website. A good number of Azorean websites are almost abandoned, with not even one visit per month or even very few.
Have you ever seen a page and had very linkedin data little interaction? It's not uncommon! This happens because organic, non-paid reach is decreasing and, unfortunately, it's only going to get worse.
Here is an example from our page that shows the difference between investing in ads and not investing in them.
The orange color shows the reach that is achieved by investing in ads. The publications with a lighter orange are those for which we do not invest in paid ads. In the publication on 12/01/2020, the post celebrating the restoration day reached 631 people; in comparison, the post on 12/03/2020, the interview given to Correio dos Açores reached around 16,000 people.
invest in paid and unpaid advertising
2. MEASURING RETURN ON INVESTMENT
Someone said: “ I believe in God; others bring numbers.”
In traditional media such as newspapers, television or magazines, it is not possible to measure the return on investment in a linear way and therefore there are major limitations when it comes to measuring results.
When investing in ads on both Facebook and Google, you will have metrics so you can decide what is or is not bringing results.
An A/B test allows us to test two variations of the same ad, whether it be images, texts, buttons, etc.
In the image below, we have 2 ads running on Facebook and we can see that CBO-TRAFFIC-CARROSSEL-V1 is showing better results with the clicks objective (332) . With this data, we know which ad should be disabled and which one we should allocate more money to, as it is bringing a better return on our investment.
Despite the cost per click being €0.03 and both ads, we know that people are interacting more with version 1 of our ad. There is a need to analyze several metrics together and not just how much you pay for an ad. In short, this is a big difference between creating professional ads and simply clicking the “PROMOTE” button to reach more people.
Below you can see another example of an online store where we can find out how many people visited our website, added products to their cart and even requested customization of existing products in the store. These are personalized events .
3. HUGE AUDIENCE
Facebook already has around 2.5 billion active accounts. The table below produced by Hootsuite reveals which social platforms were most used in 2020.
most used social platforms in the world 2020 hootsuite
In the Azores archipelago, Facebook counts around 170,000 people aged between 18 and 65+ on its platform.
Do you still feel like your potential customers aren't there?
These people on social media may be potential customers or people interested in your company. In addition, you can always sell to any country as long as you respect the respective legislation.
Your company in the middle of the Atlantic Ocean, located in a small parish on the island of São Miguel, will be able to sell and communicate to thousands and thousands of people. This is the new reality available to companies.
4. MUCH FASTER RESULTS
Using the old business success model, how long would it take for a company to reach everyone in the Azores archipelago?
Did you know that it is possible to reach 1000 people for around €1.50?
The example below shows an ad for people who have already interacted with our company on social media and visited our website. We are paying 0.75 to reach 1000 people who already know AcoresPro:
In short, think about distributing flyers to communicate your new product or even your new store that will open, for example, in the city of Ribeira Grande.
How much do you need to invest in flyers?
Who will distribute?
Are all the people who receive your flyer genuinely interested? Will they visit your store?
How long does it take to organize all this?
Still have doubts about whether your business should invest in advertising?
5. HIGH SEGMENTATION POWER
Imagine a company that sells animal feed or products in Ponta Delgada. It doesn't make sense to show your ads to people who have no interest in such products or items. Through ads, we can target people who are interested in this market or any other.