We Don't Create Ads Based On Guess Work
Written by Josh Hines • August 28, 2024 • 4 Minute Read
Digital Media Buying Based On Data
Most agencies that manage your advertising budget look for the keywords, phrases, and audiences with the largest reach, burn through the budget, and then share only a few leads. All their work is a guess. Then they manipulate how they're driving results.
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The Modern Day Advertiser
In the old days, you could tell a good advertiser by their ability to market and sell goods using direct mail. Coupons for everyone.
In today's age, there are still businesses that do direct mail, but the modern-day advertiser is now measured by their ability to gain customers via digital advertising, usually on Google, popular social media platforms, and other digital media outlets.
You're Either Converting Or You're Not
When deciding what agency you want to work with, conversions, meetings, and customer deals are as clear as possible. When it comes down to it, either you're seeing a return on your investment or you're not.
What Results Do You Want To See
Agency 1 | Agency 2 | Agency 3 | |
---|---|---|---|
Fee | 10% | 5% | 15% |
Spend | $3,000 | $5,000 | $2,000 |
MRR | $1,000 | $1,000 | $1,000 |
Return | 3 Months | 5 Months | 2 Months |
If you work with one agency that is marketing your platform that on average generates $1,000 in MRR and spends $3,000 to acquire a customer, it's going to take you three months before you see any profit.
You could also run with an advertising agency that offers a lower management fee but, then come to find out, spends close to $5,000 to acquire that same type of customer.
Finally, you find someone who may charge a bit more for their management fee but turns customer conversions only by spending $2,000.
Compounding Your Advertising Costs
Which agency are you going to go with?
Better yet, if you want to gain 100 customers, now times those costs by 100 times.
Advertising adds up really quick!
This is the same reason why you may think anyone can use your software but, if you want to run effective marketing campaigns, you're going to want to create an ideal customer profile, otherwise, you're going to spend thousands, if not millions, on advertising to target a broad selection of people who might not even be interested in your platform in the first place.
Broad Target Marketing, Creates Broad Advertisements
Furthermore, by having such a broad selection of potential prospects, you're not going to be able to make your advertisements stand out and be personalized to your exact target which will most likely cause them to be overlooked or ignored.
Choosing An Agency That Aligns With Your Goals
Each agency you speak with is going to share different strategies and tactics but will likely be using the same platforms to advertise on.
So when it comes down to picking, it's really about being clear on your goals and asking for examples of the campaigns they had run in the past that drove results.
This Isn't Guess Work
The worst thing you want is to partner with an agency that spends your marketing budget on hunches and guesses. With the technology available today, a good advertiser will understand the keywords, phrases, audiences, competition, costs, and average conversion percentages before even spending a dollar.
Using these variables and the law of averages, after looking at your buyer's cycle and closing percentages, they should be able to give you a ballpark return on investment as well.
Because the advertising landscape is constantly changing, you'll find few agencies that will give you a guarantee on your money but you should feel confident after talking with them, that they know what they are talking about.
What To Look Out For
When conversing with an agency, pay attention to the outcomes they tend to focus on. Some agencies talk about how they'll increase your social media following, increase engagements on your posts, drive more traffic to your website, and many other conversion types.
But you're a business owner wanting to pay the bills. If they never talk about demand generation and converting that demand into paying customers, you're most likely going to get a lot of vanity metrics.
Lastly, besides the outcomes, asking what metrics they tend to focus on, shares a lot of insights as well. If they tend to focus on traffic, engagements, cost per lead, or leads generated, they aren't going far enough and working with their clients to understand if the services they are providing convert into paying customers.
When you are spending money, the expectation should be to gain more money back. If the agency doesn't have a clear process to measure that and leaves it up to you to figure out, find someone else to work with.
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