How to Develop a Paid Media Strategy
“How to grow my company in terms of revenue and profit?” is the main question you have in your mind as a company owner, leader, marketing or sales director. Most probably you organize different strategy meetings with key employees, run workshops outside the office and spend many late night hours in front of the whiteboard. This all has been done for only one reason – to meet the company’s growth targets.
Developing a waterproof strategy, planning the best tactics and implementing the plan may not be as easy as it seems. It’s rather like trying to complete the puzzle game of 100 000 pieces but having only 10 000 out of them to use. There are many pieces missing and some of them are most probably from other puzzle game.
So, what are your next steps? Many businesses give up sooner or later and close down. Many leaders leave their job. Only few of them find short term and long term solutions which provide the desired results. From my experience I dare to say that Paid Media is exactly the strategy which helps companies to grow in terms of revenue and profit.
What is Paid Media?
Digital Media can be divided into three groups: OWNED, EARNED and PAID.
Owned Media is all the company’s digital assets like the official website, landing pages, blogs etc. Earned Media is all the comments, likes, shared and ratings you receive online. Paid Media is all the digital advertisements including search, display and remarketing.
Traditional Marketing is Not Working. Period
The reality is that the traditional sales channels like TV, outdoor, radio etc are not producing the same results as they were before. The cost has gone up and the results are going down. Even more – it’s very difficult, not to say impossible, to measure the real results. Competition is high and it’s getting more and more harder to stand out from the crowd. So, STOP IT! Stop spending your money! Invest your marketing and sales dollars to channels that bring more back. Otherwise it just doesn’t make sense.
Paid Media Planning
It’s not only the short term sales campaigns (2-3 weeks) which could be considered as Paid Media planning, it’s rather the whole digital advertising with short and long term (6-24 months) strategies to meet company’s business goals (sales, branding, launching a new product, entering the new market etc). Digital advertising is growing faster than you think. See the article in eMarketer about how US media and entertainment digital ad spend passes $6 billion in 2015.
Paid Media Goal
The first question you need to answer is “What is the goal of using Paid Media for my business?”. It’s usually growing the sales. Still, branding should not be forgotten! Doing branding right in Paid Media will increase your short term and long term sales!
Other than that Paid Media is one of the cheapest and quickest ways entering a new market and doing the marketing research. Even less than 10 000 dollars could give you an insight about the new market potential. The other and more traditional way when entering a new market is to hire a business or local consultant, go to trade shows, hire employees, rent an office etc and hope it will succeed. And the investment for that is several times bigger compared to what could be achieved with Paid Media.
Paid Media Strategy
Company’s position on the market, challenges, opportunities, budget, short term and long term business goals should be taken into account while developing the right Paid Media strategy. There is always a way to beat your competitors with even lower marketing budget. You have to be smart and know what you are doing. Or at least know someone who knows what he or she is doing.
There are few questions you need to answer to develop a strong Paid Media strategy:
- What are the main products or services I would like to sell more? Should I start with all my portfolio or with my best sellers?
- How much I’m ready to pay for a new customer? CPA (Cost Per Action)? CPL (Cost Per Lead)? 10$? 50$? 200$?
- What is the average Lifetime Value of one client? On other words, how much profit one clients brings you on it’s lifetime? This gives you great insight for CPA.
- Who is my Buyer Persona? Additionally to demographics how I would describe him or her? Interests? Problems? Hobbies?
- What is my company’s Unique Selling Proposition (USP) and how to communicate it?
- What should be on banner or in ad text? Which banner sizes works the best? Which banner format should I use? Normal .jpg or dynamic .gif?
- What are the marketing channels I will use? Facebook ads? Facebook Remarketing? Google Search? Google Display? Google Remarketing? YouTube video ads? Gmail ads? Bing? LinkedIn? …
- What is the marketing budget I will start from? 2 000$? 5 000$? 20 000$? 100 000$? What is the annual budget?
- How I will divide the marketing budget between the different channels?
- What my competitors are doing? What are the keywords the bid on? Which are the visuals they use? Can I do R&D (Rob and Duplicate :))?
- How to measure the results? AdWords Conversion Tracking? Analytics Goals? Facebook Conversion Pixel? Who sets up the tracking and tests those?
- What it the long term (6-24 months) Paid Media strategy and what are the goals? (How many new sales? How much recurring revenue? What is the % of marketing budget that goes to branding?)
- How many times per year I plan short terms campaigns?
- What are the main Key Performance Indicators (KPI’s)?
- What is the optimizing strategy of Paid Media campaigns (incl. adding keywords, changing ad copy, adding negative keywords, redefining targeting, pausing the higher CPA campaigns, renewing the banner visuals)?
- How and how often I analyse the campaign results (incl. overall results, making conclusions, changing the strategy, trying new approaches, optimizing the budget)?
Paid Media is the fundamental of online campaigns success. You have to understand that even the very best plan needs to be flexible enough to change according to the real world and competition out there (your competitors are not sleeping).
So, if you do not use Google Adwords, Facebook ads, haven’t tried to promote your content with Paid Media, haven’t won any new clients with remarketing, haven’t heard of GSP ads (Gmail) better performance from traditional display ads or know that you only pay pennies for one video view then it’s last time for you to take action!
If you need help in developing a Paid Media strategy or have any other questions please feel free to contact me directly [email protected] or fill the contact us form. We can help with smaller (1000$/mo) or larger budgets (50 000$+ /mo).
You can also read our other blog posts about Paid Media.