Is It Time to Ditch Responsive Search Ads for Performance Max?
If you’ve been running ads on Google recently, you’ve probably noticed the introduction of Performance Max. This new campaign type has made waves in the marketing world, leaving many advertisers wondering: should I stick with Responsive Search Ads (RSAs), or is it time to switch to Performance Max?
Each option has its strengths, and there’s no universal answer. The choice between RSAs and Performance Max comes down to your advertising goals. Are you aiming to capture customers who already know what they want, or do you want to reach a broader audience that might not be actively searching? Let’s break down the features of each to help you decide which is the best fit for your needs.
What Are Responsive Search Ads?
Many Google advertisers use Responsive Search Ads (RSAs). The appeal? They let you create an ad that changes based on what users are searching for. You create multiple headlines and descriptions to give Google’s AI phrases to play with. Then, the AI combines headlines and descriptions to find what each user likes.
Suppose you advertise a local gym. Someone nearby searches “best gym near me” or “affordable gym memberships.” RSAs ensure that your ad appears with the messaging most likely to grab their attention. Google’s algorithm optimizes ad combinations based on real-time testing. The result? Relevant, personalized, and timed ads that grab attention.
RSAs are a good choice if you want to connect with people interested in your offering. RSAs are effective for businesses targeting “high-intent” customers—people who know what they want and are ready to act. Conversion-focused brands use them to turn searchers into leads, subscribers, or buyers.
For insights on how to create effective Google Ads campaigns, look at this beginner’s guide to Google Ads.
How Exactly Do RSAs Work?
Setting up RSAs is straightforward. Google lets you create up to 15 different headlines and four descriptions for each ad. While that might sound like a lot, the idea is simple: the more options you give, the more combinations Google’s AI can test. The goal is to cover your bases by having headlines that speak to various aspects of what you offer.
For instance, if you run a coffee shop, one headline might read, “Award-Winning Local Coffee.” Another might say, “Freshly Brewed Coffee Near You.” The descriptions can be just as varied, covering everything from your special drink menu to the fact that you offer free Wi-Fi. With all these options in play, Google’s AI can mix and match to serve up the perfect combination, customized to what a person is searching for.
As your ads run, the AI learns which combinations are the most effective, showing them more often. This ongoing optimization makes sure your ads stay relevant, engaging, and impactful, making RSAs a great choice if you want to reach customers who are already on the hunt for what you offer.
Enter Performance Max: The New Multi-Channel Ad Option
Launched by Google to give advertisers a broader reach, Performance Max campaigns go beyond search results to include placements on YouTube, Gmail, Google Maps, Display Network, and Google Discover. This means your ads can show up in multiple places where people spend time online.
The main appeal of Performance Max is its automation. You set your goals—like driving sales or boosting website traffic—and Google’s AI takes care of the details. It decides where, when, and how to display your ads, making real-time adjustments to optimize performance.
For brands looking to expand their reach and build awareness, Performance Max is an appealing option. It’s especially useful for businesses that want to engage potential customers who aren’t actively searching but might be interested if they come across the brand in other contexts.
This overview of Performance Max campaigns by Google Ads Help has more details on Google’s automation in advertising.
How Does Performance Max Work?
Performance Max campaigns rely on machine learning and “audience signals” to place ads. Rather than just using keywords, Performance Max uses browsing behavior, user interests, and online activity to reach people who might be a good fit for your brand. This broader targeting is particularly valuable if your goal is to increase brand recognition across platforms.
Imagine you’re running ads for a fashion label. Performance Max might display your ads to people who have watched fashion-related videos on YouTube, visited style websites, or even searched for similar items in the past. This approach helps you reach audiences who might not be looking for your product directly but could be interested when they see it.
Another advantage of Performance Max is its ability to manage budget allocation. If certain placements—like YouTube or Gmail—are performing better, Google’s AI will automatically adjust your budget to focus on those high-performing channels.
Targeting: Which Audience Do You Want to Reach?
Responsive Search Ads for High-Intent Customers
RSAs are highly effective for targeting people who already know what they want. Picture someone searching “emergency plumber near me.” They’re not just browsing—they need a solution fast. RSAs let you reach high-intent users at the moment they’re most likely to convert, making them ideal for capturing ready-to-act leads.
For businesses that rely on specific customer intent—like local services, e-commerce, or products that people search for directly—RSAs can deliver the right message at the right time.
Performance Max for Broader Reach
Performance Max, on the other hand, targets potential customers based on interests and online behaviors. This allows your ads to reach people across different Google platforms, even if they aren’t actively searching for your product or service.
For example, if you’re launching an energy drink, Performance Max can strategically place your ad where it’s most likely to be seen, like during YouTube workout videos or in health-related articles. This approach helps create brand awareness and keeps your product in front of people who may become customers later.
Goals: What Are You Trying to Achieve?
RSAs for Direct Conversions
RSAs are specifically designed to drive conversions. They’re great for businesses that want people to take immediate actions, like signing up, making a purchase, or booking a consultation. Since RSAs target people actively searching for something, they tend to convert at a higher rate.
For instance, if you’re promoting a natural cleaning product, RSAs can target specific keywords like “eco-friendly cleaning supplies.” This approach connects you with users who are already interested, increasing the likelihood of clicks and conversions.
Performance Max for Brand Awareness
Performance Max excels in campaigns where the goal is building brand awareness. By reaching users across multiple platforms, Performance Max helps you stay top-of-mind, ensuring your product or service is seen in different contexts. It’s ideal for companies looking to make a lasting impression and stay visible throughout the customer journey.
Control and Customization: How Much Freedom Do You Want?
RSAs Let You Control Your Message
One of the main advantages of RSAs is the control they provide over ad copy. You can choose specific headlines and descriptions and “pin” certain elements, so they appear in every ad. This is helpful if you want to maintain brand consistency or emphasize key messages, like “Free Shipping” or “Limited Time Offer.”
Performance Max Relies on Automation
Performance Max offers a hands-off approach. Instead of customizing each element, you upload a set of assets—text, images, and videos—and Google’s AI decides how and where to place them. This can be a big time-saver, but it means you have less control over how the ads look in each setting.
For businesses that prefer a more automated approach, Performance Max’s streamlined setup could be a perfect fit. However, if you prefer a more hands-on strategy, RSAs provide the customization you need.
Data Insights: How Much Information Do You Need?
RSAs Offer Detailed Data
RSAs provide detailed insights into which combinations of headlines and descriptions perform best. Google’s Ad Strength score helps you gauge the relevance and effectiveness of your copy, allowing for data-driven adjustments to maximize results.
Performance Max’s Reporting is Less Granular
While Performance Max offers metrics like impressions, clicks, and conversions, it doesn’t provide the same level of detail as RSAs. You won’t see which specific assets performed best, which can make optimization harder if you rely on detailed performance data.
When to Use Responsive Search Ads
Responsive Search Ads are ideal if:
- You’re targeting people who know what they’re looking for.
- You want more control over your messaging.
- You rely on detailed performance data to refine your strategy.
When to Use Performance Max
Performance Max is a great fit if:
- You want a broader reach across multiple channels.
- You’re focused on brand awareness and engagement.
- You’re comfortable with automated ad management.
Bottom Line: Which One Should You Choose?
Should you drop RSAs in favor of Performance Max? Not necessarily. Each ad type has unique strengths that can serve different purposes. If you want to capture high-intent customers actively searching, RSAs are a great choice for driving conversions. But if you’re focused on expanding your brand reach and building awareness across platforms, Performance Max could be the way to go.
For many brands, using both ad types together can be a powerful strategy. Running RSAs for direct conversions alongside Performance Max for brand-building allows you to target people at every stage of the customer journey, from initial awareness to final purchase.
Ready to take your advertising strategy to the next level? Contact us to find out how we can help you optimize your digital ad campaigns and maximize your reach.
Choosing the Best Call to Action: Phone, Email, or Both?
A call to action (CTA) can be presented in many ways, all with the same goal: to get your customers to do what you want. But how do you decide on what method works best for you and your business?
Every business is unique and, subsequently, will require unique marketing solutions. Today, we’ll be exploring the pros and cons of calls to action via phone and email.
Your product or service usually speaks for itself, but sometimes, you need to talk to your customers directly. So, which do you choose? A call to action by phone, email, or both?
Let’s explore.
What is a Call to Action?
A call to action, as a marketing concept, means prompting your customers to take action—usually involving either signing up for a service or purchasing a product. Whether it is a newsletter, a tangible product, a subscription, or the like, ideally, you want them to take action to connect with you and your business.
It exists as a persuasive element embedded into an email, advertisement, or website. For example, you may have a “Sign up” or “Buy now” button embedded into your landing page, or a hyperlink in a blog that leads back to a contact page. Certain ad formats, like Google call ads and Meta lead ads with calling, include a “Call now” button that makes it easy for mobile users to call your business straight from the ad.
If you’re exploring a website, imagine you see in bright, bold letters: “BOGO: Buy one get one free”—and when you click it, it takes you to a sale page with discounted items. This call to action is to buy one item and get one for free. Ideally, they’ll maybe even buy a few sale items because the deal is just too great.
For nonprofits and the like, a call to action could be donating to a specific cause, in case you wanted another example. News articles sometimes call you towards a cause.
This results in a happy customer who got a great deal and money in your pocket from the sale. This is the primary function of a call to action.
Phone Calls to Action
A “Call now” call to action can be a highly effective way to connect with potential customers.
Think of it this way: your website, your ads, your social media presence—they all serve as platforms to initiate a conversation. Asking customers to call is the invitation to start that dialogue.
Here are some examples of how you can incorporate “call now” into your marketing materials:
- “Call now for a free consultation!”
- “Limited time offer—call now to secure your discount.”
- “Have questions? Call now to speak with an expert.”
- “Call now to schedule a demo and see [product/service] in action.”
- “Don’t wait! Call now to reserve your spot.”
Or, in the case of many ‘call ad’ formats, it’s simply a button under the ad itself that says, “Call now!”
All these examples provide a smooth transition into actionable steps that have a desirable result.
What Are the Benefits of a Call to Action Over the Phone?
Phone calls are direct and to the point. They allow you to make a more personal connection with your customers, for starters.
But let’s explore some more of the benefits of phone-based calls to action.
- Encourages Immediate Action
- It prompts potential customers to engage with you right away, increasing the likelihood of conversion (you’re striking while the iron is hot.)
- Creates a Sense of Urgency
- A “Call now” CTA implies there’s a limited-time opportunity or immediate action that customers should take.
- Clarifies Next Steps
- Calls provide clear next steps for what the customer should do next to reduce confusion.
- Establishes commitment
- Phone calls allow the customer to verbally commit to the next step, increasing follow-through.
- Builds Trust and Rapport
- Creates an opportunity for further conversation and relationship-building, showing that you’re invested in their journey.
- Provides a Chance to Address Objections
- If there’s hesitation, you can immediately address concerns or provide more information, encouraging good communication and commitment.
- Increases Engagement and Responsiveness
- Phone calls turn a passive conversation into an active one, making it more memorable and impactful.
Email Calls to Action
When someone sees your ad, you don’t always want them to call you right now. Sometimes, the better approach is to collect their email address so you can follow up later. This sets the stage for you to build a relationship and share information at a more deliberate (and often more manageable) pace.
The best way to encourage sign-ups is to offer something in return, like a lead magnet, a newsletter, a free quote, or a product demo:
- “Schedule your consultation today!”
- “Don’t miss out—reserve your spot now!”
- “Join our community—sign up here!”
- “Download your free guide today!”
- “Get your exclusive discount—redeem it here!”
- “Secure your place in our next webinar—register now!”
- “Get started with a free trial here!”
All of these examples are excellent prompts to encourage your customers to take tangible action.
Why Focus on Email Sign-ups?
- Reduce Incoming Calls
- Not everyone has the time or the workforce to handle a higher-than-usual volume of phone calls, especially when those calls require you to work your sales magic to ‘close’ potential customers. In that case, asking customers to fill out a form makes it more feasible to manage those incoming leads.
- Target Your Messages
- Depending on the form fields you include, you can learn more about your audience’s interests and use that to create stronger promotions, advertisements, emails, and more.
- Automate Your Sales Funnel
- Email marketing platforms like ActiveCampaign, Mailchimp, and Constant Contact make it possible to automate parts of your sales process. At a basic level, this could be a simple confirmation email that lets customers know you’ve received their message. Beyond that, you can build entire automated email sequences that gradually guides the customer towards taking a bigger action (like making a big purchase.) It all starts with capturing that email address!
So, Which Do You Choose?
Choosing the right call to action for your ads depends on your business goals, your target audience, and the nature of your product or service. Sometimes, a direct “Call Now” is the best approach, and other times, capturing an email address for follow-up might be more effective.
When to Use “Call Now”
- Great for industries where customers are more likely to connect with calls than email, especially if you have an older demographic.
- Great for industries such as IT, finance, insurance, banking, telecommunications, education and training, hospitality and tourism, construction and contracting, and more.
- Excellent when direct communication is more beneficial, rather than relying on someone responding to an email.
When to Use Email Capture
- Great for busy customers (and busy businesses!) who might not have the time to make/receive calls throughout the day.
- Excellent for digital, on-the-go customers who prefer to interact with businesses online.
- Great for industries such as retail and e-commerce, health and wellness, nonprofits and charities, software and technology, marketing, online learning and education, and more.
- If your sales process requires more than one touchpoint or building a relationship over time, capturing emails allows for follow-up.
When it comes to choosing which is right for you, it’s important to weigh the pros and cons of each approach and choose what works best for your business. Ideally, you want a balance of both and choose the option that’s appropriate for the scenario.
Hopefully, this blog post has helped clarify your options!
The Psychology of ‘Free’: How Digital Free Samples Hook Customers
Getting something for free, like a sample at a grocery store or a trial of a favourite streaming service (a ‘digital free sample’, so to speak), feels awesome. But ever wonder why that is? Well, it turns out that the idea of “free” has a significant effect on our choices.
What’s the secret behind our love for “free,” and why do businesses give things away without asking for a cent? The word “free” has much more power over our decisions than we might realize.
From physical freebies to digital free samples, the psychology behind getting something for free dramatically impacts how we behave as consumers. And for businesses, it’s one of the most powerful tools for turning potential customers into loyal, paying ones.
This article will explore the irresistible world of free stuff and unpack why it’s such a big deal, especially in the digital age. You’ll also see how savvy businesses use this tactic to grow their customer base and generate long-term loyalty.
The Power of Free: What’s the Appeal?
Have you ever wondered why we get so excited about free stuff? It’s not only about saving money, although that is a big part of it. At the center of this behaviour is a psychological idea called the zero-price effect. This principle explains why we often prefer something for free over something cheap, even if the price difference is small.
For example, imagine being offered a choice between a chocolate bar for 1 cent and another completely free. Most of us would go for the free one, even though the difference is tiny. Why does this happen? The idea of “free” suggests there’s no risk involved.
We see it as a win-win situation: a gain with minimal downsides. Even if the free chocolate is bad, we didn’t spend even 1 penny of our hard-earned money. So, no love lost.
This behaviour isn’t just about physical products; it also applies to the digital world. Free trials, downloadable content and app subscriptions all take advantage of our natural desire for a good deal.
Even when we know there might be limitations or conditions attached, we’re still drawn in by the feeling that we’re getting something for nothing. And that’s where businesses take advantage of this psychology. Although we may appreciate the initial offer, we often spend more money than we intended because we feel compelled to continue.
The Rise of Digital Freebies
Free samples have been a cornerstone for decades, but the digital era has elevated this concept. From free trials and “freemium” models to downloadable eBooks and guides, digital free samples and freebies have become one of the most effective ways for businesses to engage potential customers. Let’s explore how these tactics are used and why they’re so effective.
Free Trials and Demos
One of the most common types of digital free samples is the free trial. Whether it’s a 30-day trial of Amazon Prime, a 7-day free access to Netflix, or a temporary subscription to a fitness app; free trials lower the barrier to entry and allow potential customers to experience the total value of a product or service without any upfront cost.
The psychology behind free trials is simple but effective: businesses encourage users to try out their product in a low-pressure setting by removing the financial risk. During the trial period, the goal is to impress users enough that they’ll continue with a paid subscription once the free period is over.
Consider Spotify or Apple Music, which offer extensive free trials to new users. Many users become accustomed to the convenience and variety offered after using the service for a few weeks or months. By the time the trial ends, losing access to ad-free listening or curated playlists becomes unappealing, and users are willing to pay to keep the experience going.
Freemium Models
The freemium model is a popular strategy and is widely used in services and apps where basic features are available for free while advanced or premium features cost the user money.
Take Canva, the popular graphic design tool. Its free version gives users a wide selection of tools and templates for basic design needs. However, to access advanced tools such as premium images, or the ability to export files in certain formats, users must upgrade to Canva Pro.
This strategy works because users get a real feel for Canva’s core features. Once they realize how useful the free version is, many choose to pay for premium features to improve their experience. It’s a clever way to turn free users into loyal, paying customers over time.
Duolingo, the language-learning app takes a similar approach, The app provides free language lessons but offers users the option to upgrade to Duolingo Plus for an ad-free experience, offline access, and extra features. The free version draws users in, while the premium option enhances the learning journey for those ready to take it further.
To better understand why businesses, rely on these tactics, this detailed guide on Lead Magnet Types explores how free content plays a crucial role in customer conversion.
Downloadable Content as Lead Magnets
Not all digital freebies are apps or subscription services. Some businesses offer content, like eBooks and guides, to attract customers by providing valuable information when users provide their contact details, like an email address.
For instance, a digital marketing company might offer a free eBook titled “10 Steps to Improve Your Website’s SEO.” To download it, users provide their email addresses, which enables the company to send follow-up emails related to marketing campaigns or special offers.
This basic interaction establishes a bond with clients by keeping them interested and leading them step by step through the purchasing process. If you’re curious about how email marketing works, check out this blog on Email Marketing Essentials—it dives deeper into this process and why it’s so effective.
Lead magnets are particularly powerful in industries where trust and value need to be established before a sale. By providing free content companies can highlight their knowledge and reputation increasing the chances that customers will explore their premium offerings down the line.
The Psychology Behind Digital Free Samples
So, what is it that makes these free digital offers so appealing? It all comes down to a few key psychological triggers that tap into our innate human behaviour:
The Concept of Reciprocity
Reciprocity is a factor when it comes to free offers. The idea is that when we receive something for free from someone else, we naturally feel compelled to reciprocate in some way. This dynamic frequently comes into play in business settings, where customers tend to be more likely to make a purchase or opt for a paid service following the receipt of an item.
For example, if you download a free guide on social media marketing from a company’s website and find it helpful without any charge; you might appreciate the business for sharing information with you at no cost.
And when you decide to hire a media marketing service in the future, you might feel inclined to choose the company, because of the guide they offered earlier. This feeling of reciprocity can greatly impact how you make decisions.
Building Trust and Reducing Risk
Offering freebies is a way to establish trust and ease the apprehension of trying something new. When you offer potential customers a free trial, demo, or piece of content, you’re giving them an opportunity to experience your product without any financial commitment.
This lowers the risk of disappointment and allows users to make an informed choice before making any financial commitments.
This trust-building is particularly important for businesses that offer complex or high-cost services. Establishing trust is crucial, for companies providing expensive services; By offering a digital free sample, they can prove the value of their product upfront and ease any concerns the customer might have.
The Fear of Missing Out (FOMO)
Another psychological factor that businesses use to their advantage is FOMO—the fear of missing out. They create a sense of urgency limiting the availability of offers or exclusive to certain users, businesses create a sense of urgency that makes them exclusive to groups to encourage people to act quickly.
For instance, if a company offers a 7-day free trial of its premium service, users might feel compelled to sign up right away to avoid missing out. Once users begin using the service during the trial period businesses can showcase the value of the product which may increasing the likelihood of converting those users into paying customers. What starts as a digital free sample becomes a paid subscription.
Long-Term Benefits for Businesses
While offering digital free samples or trials may seem like a short-term tactic, the long-term benefits for businesses are significant. Here’s how:
Lead Generation
Free digital samples, particularly downloadable content, are excellent for generating leads. By using lead magnets to collect contact information, businesses can build a list of potential customers who have already shown interest in their products or services. From there, businesses can nurture these leads through tailored marketing initiatives, like targeted campaigns and personalized email newsletters, to help steer them towards making a purchase.
Customer Conversion
The goal of giving out digital samples is to turn individuals who enjoy the freebies into paying customers. By allowing potential customers to experience the product’s value firsthand, businesses increase the chances that they’ll want to pay to continue enjoying the benefits.
Whether it’s upgrading from a freemium model to a premium service or subscribing after a trial, the conversion feels natural since the customer has already had a firsthand experience with the product and knows its value.
Wrapping It Up: Why Free is Powerful in Digital Marketing
The digital age has really upped the game for freebies. From “try before you buy” trials to apps that offer cool features at no cost (but tempt you with even cooler paid ones), these strategies are all about getting us hooked and happy.
By making it easier to get started, building trust, and creating a sense of urgency, businesses can leverage digital freebies to attract leads, build relationships, and convert users into long-term paying customers. So, the next time you come across a free offer, remember there’s a lot of psychology and clever marketing behind it. It’s all about businesses building a friendly relationship with us, the consumers, and making us feel like we’re getting a great deal.
How ‘Perfectly Imperfect’ Marketing Can Make Your Business Relatable
Nobody’s perfect, and neither is your business. While we all may try to be the best version of ourselves, our flaws are what make us human – and relatable. Same goes for your business; people are more likely to connect with your marketing efforts if they relate to them.
How do you make your business relatable? By making your marketing perfectly… imperfect.
Stay with us, we’ll explain.
Trying to be Perfect is Exhausting and Causes You to Overthink
You’re writing a blog, a social media post, or making a video you want to share to Twitter (X). But you’re obsessing over every little thing being absolutely PERFECT! You’re building tension in your shoulders, you’re getting a dull ache in the side of your head, and your eyes are drying out from staring daggers into a screen.
You’ve “perfected” the content, but it took you twice as long to get it out there, and you agonized over the process. It makes you NOT want to be an active participant in your own marketing efforts because it simply mentally drains and exhausts you. And you know what? That’s no way to market.
Listen, we’re not telling you to publish content with loads of spelling errors, but what we are telling you is that by relaxing and being OK with “good enough” over perfection is freeing. You may even find that you get more done in a few hours by easing up on the perfecting process.
Besides, seeing that you’re human helps your customers relate to you. Think of it like posting a slightly unflattering photo of yourself. Sure, you don’t look perfect, but everyone has a bit of a double chin at a certain angle, or their belly folds in when they crouch over.
People appreciate someone who seems like a real person, not a perfect model. Your customers will feel the same. Sure, maybe you could have done 10,000 more edits on that blog – or you could edit it once, maybe twice, and be happy with what you created.
Doing this allows your personal tone to come through, rather than a piece that seems like it was AI generated to be “perfect.”
Besides, overthinking something is a good way to miss out on the simple things that work. Instead of trying to be unique and perfect, you can make your business relatable by creating content people care about. To further make your business relatable, you can also consider showcasing the process behind your content creation.
An Example of How ‘Perfectly Imperfect’ Makes Your Business Relatable:
Imagine writing a cooking blog. There are millions of them, so trying to stand out and be “different” is nearly impossible. Instead of overthinking it and trying to iron out every wrinkle, you write the content you enjoy.
You share a fun recipe about taco dip and write it from the heart, maybe even including some of the pitfalls and oopsies you had when you developed the recipe.
Maybe your blog has images of the process that aren’t perfect; the bowl has smears on it, there’s cheese on the countertop, and you can see a few dishes in the background.
Who cares? You post it anyway because going back to take new photos would be double the work. Besides, who doesn’t make a mess when making taco dip?
Your client base reads it, and rather than scoffing at your lack of inhuman perfection – they LAUGH. They RELATE. They SHARE THE CONTENT.
Your client base grows because your efforts are relatable. This is also true in marketing. Show your audience that you’re just like them, and you’ll make your business relatable in the process.
As the Saying Goes, Comparison is the Thief of Joy… and Success
Did you ever consider that trying to be perfect is getting in your own way? Not likely, but it’s true. You could be blocking you from great success because you’re spending more time trying to be perfect.
Ask yourself this: when did I start putting all my efforts into being perfect? It isn’t serving you, and perfecting every little conceivable thing doesn’t make your business relatable. You’re creating more work for yourself, you’re doing things over and over, and you’re stressing yourself out to the max.
Just like your mum or dad when you were young, we’re going to give you some schoolyard advice: stop trying to be like “the others” – AKA, your competition. You can take notes, but just like school kids, it’s easier to make genuine friendships by being yourself. Not trying to be someone else.
The same goes for business. Comparison is the thief of joy – so stop trying to emulate everyone else just as much as you shouldn’t stress about being endlessly unique. Just allow your business to be your business and highlight the things that you think make you valuable to your customers.
Humanizing commerce by being perfectly imperfect makes people want to choose you over your competition. The over-produced and perfectly polished marketing is difficult to trust, because it just doesn’t seem personal or real.
Being TOO PERFECT is actually obnoxious, and people don’t trust those who seem disingenuous. And yes, being perfect all the time doesn’t translate as genuine. It seems scripted, developed, planned – not real.
Consumers are smart, and they have little tolerance for “b/s” (bad scripting). The last thing you want is for them to go to a review site and leave remarks on how unrelatable and obnoxious your marketing is. Even worse, they don’t trust you because your over-produced and polished marketing seems fake. To make your business relatable, avoid this trap and go for authenticity instead.
Being Imperfect Gives You Opportunities to Interact
Have you ever been on LinkedIn and seen a representative of a business posting these long, diatribes about their business that just sound…
Phony? Phony bologna?
OK, maybe not phony, but just way too polished and frankly obnoxious. They post constantly, and every post is perfect, so it seems like they must have worked on it like an essay. Only you don’t receive grades on LinkedIn posts – you get interactions.
And you know what I noticed? A lot of these posts get minimal genuine interactions. Maybe they get likes from other business moguls who follow them, but you don’t see many people in the comments having conversations.
Do you know what I see getting LOADS of interactions on LinkedIn? People who post about themselves and subjects that actual people care about. This could be issues they face in their profession, personal experiences, or even just their general thoughts about their business.
They discuss with people in the comments and engage with their audience.
Humanizing yourself to the people you want to do business with makes them feel more comfortable talking to you. The more discussion they have, the more they interact, the better the marketing.
If you’re posting over-processed, perfected posts – people aren’t going to be compelled to interact. The content seems like it either wasn’t written by a real person, or the person who wrote it isn’t relatable enough to have a conversation with.
It’s like trying to have a conversation with a “know-it-all” – sure, they’re knowledgeable, but they’re boorish about it. They almost make you feel stupid for asking questions or trying to engage.
Over-polished marketing can feel the same way very much, where someone won’t engage with you because your “perfected content” is standoffish.
If you seem like a real, imperfect person or business, people will want to talk to you. That interaction boosts your engagement and creates a level of trust.
What “Perfectly Imperfect” Looks Like:
- Don’t oversell your product as a fix-all, that’s unrealistic. Instead, highlight elements of it that integrate seamlessly into everyday life.
- Show real people doing real things. Posts with people are a lot more relatable than just product image after product image.
- Own up to imperfections. This is big for new businesses especially. If your product has minor hiccups and you receive a complaint, don’t be afraid to talk about it and own up to it. This is how things get better – by acknowledging inadequacies and not making excuses.
- Keep it real. Write your content in a tone that is authentic to you and your voice. Just like we do over here at Traffic Soda, you can tell that a real person is behind the words on the page.
- Keep it consistent. Don’t be quick to drastically change things up, especially once you find something that works. It can be read as disingenuous if your client base is used to a certain kind of content and then that content is suddenly unrecognizable.
- Have discussions. Talk with your client base, engage with them regularly. See what they have to say and if they have suggestions. Find out what they like and what they don’t like.
- Trial and error – everything is trial and error. Be open about your hiccups and don’t stress yourself out when you make mistakes. To error is to human, and people find other humans relatable.
Stop the stress and ease up, perfectly imperfect marketing is the new-age way of relating to your client base. No need for filters, scripts, and over-polished content; just be your perfectly imperfect self.
Should Your Website List Pricing? The Benefits of Price Transparency (Even When Competitors Hide)
Many businesses, especially those selling to other businesses (B2B), are hesitant to display their prices online. But there are real advantages to price transparency, even when your competitors are playing hide-and-seek with their pricing.
Let’s talk about Dan, a small business owner I’ve known for decades.
Dan runs a business manufacturing building material. A pretty standard product in a competitive industry. His product isn’t something you needed much of a sales pitch for – you either need it or you don’t.
For decades, Dan followed the unspoken rule: never list prices on the company website. None of his competitors did it, so he didn’t do it, either. After all, he didn’t want someone swooping in with lower prices and stealing his customers.
But one day, while trying to find ways to help his sales team handle the endless stream of customer calls, Dan had a revelation.
He realized a huge chunk of those calls were simply people asking about prices.
So, Dan took a leap of faith. He decided to break the mold and put his prices right there on his website.
He figured, “If competitors want to undercut us, let them. We’re not winning on price alone anyway.”
The result? Surprising and rewarding.
As Dan expected the number of calls from people simply asking about prices dropped dramatically. No more tire-kickers wasting his team’s time.
But what he didn’t expect was the surge in new business.
When Dan added pricing to his website, his search engine rankings skyrocketed. Turns out, a lot of people were searching online for the exact products he sold, specifically looking for pricing information. And since his competitors were all keeping their prices secret, Google sent those searchers straight to Dan’s site.
Suddenly, Dan was getting emails and calls from contractors all over Canada, even from the US. He was busier than ever, leading to more hires and continued growth.
I share this anecdote because one of the things we see time and time again in digital marketing is a reluctance on the part of many companies – particularly those doing B2B – to put anything resembling pricing on the website.
In my experience, the standard arguments against price transparency are as follows:
- “If I show my prices, my competitors will just lower theirs to steal my customers!”
- “I need to talk to customers to explain the value behind my prices.”
- “Every project I do is unique, so it’s impossible to put a standard price tag on my services.”
- “If people see my prices upfront, they’ll run for the hills!”
- “Nobody else in my industry lists their prices. If I do, it’ll ruffle some feathers.”
- “I want to build relationships with my customers, so I need them to call us.”
- “My prices change all the time, so it’s not practical to keep updating my website.”
All of these are completely valid concerns, and I’m going to address them one-by-one momentarily.
But first, I want to talk about the reasons for price transparency. Because I firmly believe that the benefits of listing pricing on your website (or at least a ballpark figure or ‘starting at’ price) far outweigh the drawbacks in most cases.
The Case for Price Transparency: It’s More Than Just Numbers!
There are three huge advantages of being upfront about your pricing:
1. Price Transparency is Outstanding for SEO
Many of the most popular search terms for any given product or service are directly related to pricing.
Think about how you search for things online. When you’re interested in a product or service, you probably include words like “cost,” “price,” or “rates” in your search query.
If your website doesn’t mention pricing at all, you’re missing out on a massive on-page SEO opportunity to attract potential customers who are actively looking for this information.
2. Trust is the Cornerstone of Good Customer Relationships
Being upfront about your pricing builds trust with potential customers.
Customers value price transparency. They don’t want to waste their time contacting a company only to find out the price is way outside their budget.
You’re showing them that you respect their time and that you have nothing to hide. This builds credibility and makes them more likely to choose you over a competitor who’s being secretive about their costs.
3. Pricing Helps Customers Decide (and Decide Faster)
The customer journey is a process, and a part of that process is price research.
Even if someone isn’t ready to buy right away, they might still be interested in your pricing. They could be in the early stages of research, gathering information to create a budget or compare different options. Helping them make informed decisions by way of price transparency positions you as a helpful resource and a trustworthy supplier.
Why Price Transparency is Nothing to Be Afraid Of
The market is tough and breaking with tradition is daunting. But when you look deeper into some of the most common concerns about price transparency, it becomes clear that the benefits outweigh the drawbacks.
Here’s my take on each of the common objections:
1. “If I Show My Prices, My Competitors Will Just Lower Theirs!”
This is a valid concern, but let’s be realistic. Chances are that your competitors already have a pretty good idea of what you charge. It’s incredibly easy for them to pose as a potential customer and get a quote.
Plus, customers talk. They share their experiences, including pricing, both online and offline.
Have you ever searched for reviews of a business and found people discussing what they paid? It happens all the time. When you don’t list your prices, you’re missing out on controlling the narrative.
Price transparency builds trust. If a potential customer sees that you’re upfront about your pricing, they’re more likely to see you as honest and trustworthy, even if your prices are slightly higher than a competitor’s.
2. “I Need to Explain the Value Behind My Prices.”
We hear you. Your pricing reflects the exceptional value you provide, and you want to ensure potential customers understand that. But hiding your prices isn’t the solution.
Instead, let your website do the talking. Use clear, compelling copy to explain your value proposition.
Highlight the benefits of your product or service, the problems it solves, and the unique advantages you offer. Show potential customers why your pricing is justified.
If your business relies heavily on personal relationships and rapport, consider adding videos or webinars to your website. This allows potential customers to “meet” you virtually and get a sense of your personality and expertise before they even pick up the phone. It’s a great way to establish a connection and pre-qualify leads, ensuring that when someone does reach out, they’re already invested and understand the value you bring.
Effective communication is key. Showcasing your value and building rapport through your website justifies your pricing and attracts customers who appreciate what you offer.
3. “Every Project I Do Is Unique.”
It’s true that not everything fits neatly onto a price tag. But even with highly customized offerings, there are ways to provide potential customers with valuable pricing information:
- Start with a Baseline. Mention a starting price or a price range to give visitors a general idea. You can add a note explaining that the final price will depend on their specific needs and choices.
- Showcase Past Projects. Share examples of previous projects you’ve completed, along with their associated costs (anonymized, if your customers don’t want that information out there.) This allows potential customers to see real-world examples and get a sense of how your pricing scales with different levels of customization.
- Offer Interactive Tools. Consider adding an online calculator or configurator to your website. This allows visitors to select different options and features, seeing the price adjust in real-time. It’s an engaging way to demonstrate how customization impacts the final cost and empowers potential customers to explore their options.
The goal is to provide enough information for potential customers to make an informed decision about whether to contact you for a more detailed quote.
You don’t have to reveal every pricing detail upfront, but giving a ballpark figure or a sense of how your pricing works goes a long way in building trust and attracting the right leads.
4. “If People See My Prices Upfront, They’ll Run for the Hills!”
If a potential customer is solely focused on finding the cheapest option, do you really want them calling you in the first place? These price-sensitive customers are just going to jump ship if they find a slightly lower price elsewhere.
Listing your prices acts as a helpful filter. It allows you to weed out those who aren’t a good match early on, saving you and your sales team valuable time and effort.
Instead, you’ll attract customers who understand and appreciate the value you provide, even if it comes at a slightly higher price point.
You’re not just selling a product or service – you’re selling a solution, an experience, and a relationship. Focus on attracting customers who value those things, not just the lowest price tag.
5. “It’ll Ruffle Feathers in my Industry.”
Let’s be honest – this one’s a bit of a non-issue. You’re not here to please your competitors. You’re here to serve your customers and grow your business.
If your competitors are upset because you’re being transparent, that’s their problem, not yours.
Focus on what’s best for your business and your customers. If being upfront about your pricing helps you attract the right clients and build trust, then it’s a smart move, regardless of how your competitors feel about it.
6. “I Want to Build Relationships with my Customers.”
While it’s true that withholding pricing can prompt inquiries, it doesn’t necessarily lead to quality leads.
You might end up spending a lot of time on the phone with people who aren’t a good fit or can’t afford your services.
Instead of using pricing as a bait-and-switch tactic, focus on providing valuable content and resources that genuinely attract potential customers. Offer free webinars, demos, or other lead magnets that showcase what you offer and provide solutions to their pain points.
This helps you build an email list of interested prospects and establish yourself as a thought leader in your industry.
You can nurture leads and build relationships without relying on the mystery of hidden pricing.
7. “My Prices Change All the Time.”
We understand that fluctuating prices can make it tricky to keep your website up to date. But don’t let that stop you from being transparent. There are solutions:
- If your prices change frequently based on factors like inventory, demand, or even competitor pricing, consider implementing a system that automatically updates your website in real-time. This eliminates the hassle of manual updates and ensures your customers always see accurate information.
- Even if you can’t automate everything, use clear language on your website to explain that prices are subject to change. Be upfront about the factors that influence your pricing, like seasonality or fluctuations in raw material costs to manage expectations.
- If exact prices are constantly in flux, consider listing a “starting at” price or a price range. This gives potential customers a general idea of what to expect while acknowledging that the final cost may vary.
Tip: Make it Easy on Yourself with the Right Tools!
A user-friendly content management system (CMS) like Webwizard can make updating prices on your website a breeze. It’s a great option for businesses that need more flexibility than a simple online store platform like Shopify, but still want to showcase their products or services and their associated costs.
Exception: Regulatory Restrictions
Sometimes, regulations might prevent you from displaying prices directly on your website. Industries like healthcare, legal services, and financial services often have specific rules about advertising pricing, and price transparency might not be feasible (or even possible).
If that’s the case, you’ll need to get a bit more creative with your marketing:
- Focus on showcasing your expertise, building trust, and offering valuable resources to potential customers.
- Consider using testimonials, case studies, or detailed service descriptions to highlight the value you provide.
- You can also offer free consultations or assessments to start building relationships with potential clients.
If you’re in a regulated industry and unsure how to navigate these restrictions, don’t hesitate to reach out to us! We have experience working with companies in several regulated sectors and can help you develop effective marketing strategies that do it by the book.
Price Your Products or Services with Intention
So, the answer is a resounding yes: you should absolutely list your pricing whenever possible. The benefits of price transparency largely outweigh the potential drawbacks.
But don’t stop there. Take the time to really understand how your pricing affects buyer behaviour.
There’s a whole field of study dedicated to price psychology, exploring how even subtle changes in pricing can influence purchasing decisions.
For example, did you know that ending a price with .99 can make it seem significantly lower than a rounded number? Or that offering three pricing tiers can guide customers towards the middle option? It’s fascinating stuff, and it can have a real impact on your bottom line.
We’d love to delve into this topic in a future blog post, but for now, we recommend checking out this great article from HubSpot on the psychology of pricing.
Take that leap of faith and add your pricing to your website. You might be surprised at the positive results.
And if you need help navigating the process or have any questions about pricing strategies, don’t hesitate to reach out to us. We’re here to help.
Lead Magnet Types That Still Work Like a Charm in 2024
Remember the good old days when a simple checklist or eBook could reel in leads? Well, those days are gone, my friend. Generative AI is here, and it’s handing out free information faster than you can say “Regenerate Response.”
Lead magnets – those enticing, digital freebies you offer in exchange for a lead’s contact info – can still be just as effective as ever. But in the age of AI, they need to be really valuable. We’re talking honey-glazed, irresistible offers that make folks willingly hand over their precious email addresses. And not all lead magnet types can readily deliver that.
If you’re a small or mid-size business owner, don’t panic. We’re here to guide you through the lead magnet maze, helping you work through the best lead magnets types that still work well in 2024.
Why Lead Magnets Work (And Why AI Makes Them Trickier)
For the most part, we humans are wired in predictable ways. Lead magnets tap into those instincts to help convince leads to buy in via their contact information.
Three of the most important psychological ‘tricks’ behind lead magnets are Reciprocity, Authority, and Instant Gratification.
1. Rule of Reciprocity
Humans are wired to feel a sense of obligation when someone does something nice for them. Offer someone a valuable piece of content for free, and they subconsciously feel indebted to you thanks to the Rule of Reciprocity.
This subtle nudge makes them far more likely to reciprocate by giving you their contact information or considering your services.
2. Authority Bias
People have a natural tendency to weigh the opinions and judgements of authority figures higher. Offering a lead magnet that showcases your expertise positions you as a trusted source of information, which builds credibility and makes potential customers more likely to listen to what you have to say.
3. Instant Gratification Theory
We live in a world of instant downloads, streaming services, and two-day shipping. People crave immediate rewards. A lead magnet that provides instant access to valuable content or resources satisfies this desire, making them more likely to act and engage with your brand.
How AI is Changing the Game
Generative AI is an instant gratification machine. It can churn out basic info and even generate personalized advice in a heartbeat. And while it can’t compete in terms of reciprocity or authority (at least not yet), the sheer speed of its answers is an incredibly powerful draw.
Why hand over your name and email address for a How-To Guide when ChatGPT can whip one up faster than you can download a PDF? That’s the hurdle that we as marketers have to overcome now.
Your audience now expects more bang for their buck, more uniqueness, and more value in exchange for their email address. Often, a simple checklist or how-to guide just won’t cut it anymore.
Lead Magnet Types that Still Work in 2024
To stand out, you’ve got to up your game and offer lead magnets types that AI can’t easily replicate. And these lead magnet types have still got it.
1. Webinars
A packed theater, the spotlight shining on you, the audience hanging on your every word. That’s the power of a webinar!
Okay, so maybe it’s not exactly like a Broadway show (unless you’re really good…or bad), but webinars offer something even AI can’t replicate real-time interaction with similarly real human beings.
It’s your chance to connect with your audience, answer their burning questions, and show off your expertise in a dynamic, engaging format.
You can weave in demonstrations, captivating visuals, and even tell a few stories to keep folks glued to their screens.
Plus, with limited time offers and exclusive sneak peeks, you create a sense of urgency that makes people eager to sign up. FOMO (fear of missing out) is real, folks!
Why Webinars Still Rock
- High Conversion Potential: We’re talking 25-56% of attendees turning into leads on the tail of a truly excellent webinar. And with targeted offers and killer follow-up, you can boost those numbers even higher.
- Qualified Leads: Unlike those random clicks on an ad, webinar attendees are actively seeking information. They’re interested in what you have to say, making them prime candidates for nurturing into loyal customers. One survey found that 73% of B2B marketers consider webinars the best way to generate high-quality leads.
- Cost-Effective: Compared to other lead-generation tactics, webinars are relatively cheap to produce. You don’t need a fancy studio or a Hollywood budget, just your knowledge, a webcam, and a video conferencing platform like Zoom or Google Meet.
Where Webinars Fit in the Funnel
Webinars shine brightest in the middle of the funnel (MOFU). Your audience is already aware of their problem and is hungry for solutions. Your webinar is where you step in, educating them, nurturing those leads, and positioning your business as the answer to their manifesting.
But don’t underestimate their power at the top of the funnel (TOFU) either. A well-crafted webinar on a broad industry topic can draw in a crowd, capturing leads and sparking initial interest in your brand.
2. Original Research
In a world overflowing with AI-generated content, original research is like a breath of fresh air. It’s your unique data, your insights, something no fancy AI can conjure up on its own.
Decision-makers crave this kind of insider info. They’re not interested in generic fluff. They want data-backed insights to guide their choices. Your original research can be the compass that points them in your direction.
Just look at how often we refer to original research throughout this article! And we’re giving them free backlinks in return.
Why Original Research is a Lead Magnet Powerhouse
- Uniqueness: Original research is your golden ticket to standing out in the sea of sameness. It’s content that can’t be easily replicated, making it incredibly valuable to those seeking in-depth information.
- High Conversion Potential: When done right, original research can boast conversion rates of 20% or even higher. That’s like turning every fifth curious click into a potential customer.
- Attracts Decision-Makers: Data-driven insights are catnip for decision-makers. They’re looking for evidence, not just opinions. Original research gives them the confidence to take action.
Where Original Research Fits in the Funnel
Original research is your ace in the hole for the middle of the funnel (MOFU). Prospects are actively seeking solutions, and they need solid proof that you’re the real deal. Your research provides the credibility and evidence they need to solidify your position as a potential solution provider.
3. Free Trials
Free trials are like those tempting samples at Costco – a taste of the full experience without the commitment. They let potential customers take your product or service for a spin, risk-free. It’s a low barrier to entry, and hey, who doesn’t love free stuff?
But it’s not just about enticing folks with a freebie. Free trials offer a behind-the-scenes peek into how users interact with your product. What I love most about free trials is that it’s like having a free focus group, giving you valuable data and feedback to improve your offering.
And, of course, generative AI is nowhere near delivering an experience that replicates a free trial.
Why Free Trials Are a Lead Magnet Goldmine
- Conversions Galore: The numbers don’t lie. The average conversion rate for free trials ranges from 15% to nearly 50%:
- Opt-in Trials (Email Only): Around 18.2% conversion. Easy to sign up, but users might not be as committed.
- Opt-out Trials (Payment Info Required): A stellar 48.8% conversion rate! Users are more invested, but the barrier to entry is higher.
- B2B vs. B2C: B2C trials generally have higher conversion rates, but B2B trials can lead to bigger fish (and higher customer lifetime value) in the long run.
- Data-Driven Insights: While users are busy test-driving your product, you’re collecting valuable data. This helps you understand their needs, pain points, and behavior, allowing you to tailor your marketing and improve your product like a boss.
Where Free Trials Fit in the Funnel
Free trials are your secret weapon in the middle of the funnel (MOFU). Prospects are interested, they’re evaluating their options, and your free trial is the perfect nudge to tip the scales in your favor.
- Post-Demo or Webinar: Solidify that spark of interest with a hands-on experience.
- Post-Content Download: Reward engaged prospects who’ve already shown interest by downloading your whitepaper or case study.
4. Quizzes
I love a good quiz. Who doesn’t? They’re interactive, they’re engaging, and they tap into our natural curiosity.
AI can answer almost any question, but quizzes offer something unique: a personalized, shareable experience that leaves people wanting more.
Quizzes can provide leads with entertainment, insight, or even product suggestions. Plus, they’re great for gathering valuable data about your audience, helping you fine-tune your marketing strategy.
Why Quizzes Are a Lead Magnet Must-Have
- Interactive & Engaging: Forms are boring, but quizzes are fun, they’re shareable, and they leave a lasting impression. On average, quizzes have a massive 40.1% conversion rate! That means nearly half of those who start your quiz will happily hand over their contact information.
- Data Collection Powerhouse: Quizzes reveal user preferences, pain points, and interests, giving you a treasure trove of insights to segment your audience and personalize your marketing.
- Shareability & Viral Potential: While the heydays of Buzzfeed Quizzes are long gone, a well-crafted quiz can still spread like wildfire on social media. Right now, there are over 177 million quiz posts on TikTok alone.
Where Quizzes Fit in the Funnel
Quizzes can work their magic at every stage of the funnel:
- Top of the Funnel (TOFU): Attract new leads with fun, informative quizzes that offer valuable insights.
- Middle of the Funnel (MOFU): Help users evaluate their needs and discover solutions with personalized recommendations.
- Bottom of the Funnel (BOFU): Nudge those hesitant prospects towards conversion with quizzes that offer discounts, limited-time offers, or exclusive access.
Less Effective Lead Magnets (and How to Improve Them)
Some classic lead magnets have lost a bit of their luster in the AI era. But don’t write them off just yet. With a few tweaks, you can still squeeze some juice out of these old favourites.
1. Basic How-to Guides and eBooks
AI can whip up a decent how-to guide in the blink of an eye. You know they’re not as good as the real thing, but your leads – who may not be as familiar with your industry – might not.
How to Make Guides and eBooks Stand Out
- Niche Down. Instead of a generic “Social Media Marketing 101” guide, try something laser-focused, like “Instagram Reels for Vegan Pet Groomers.” The more specific, the better!
- Unique Insights. Share your own experiences, case studies, or insider tips. AI can’t replicate your unique perspective or those hard-won lessons.
- Actionable Steps. Don’t just tell people what to do. Actually show them how to do it, because that’s something AI can’t do. Include step-by-step instructions, templates, or worksheets to make it easy for people to implement your advice.
2. Basic Reports and Whitepapers
AI can crunch numbers and generate reports like a good thing, but they’ll always be lacking in the depth, context, and expert interpretation that made these lead magnet types a hit in the first place.
How to Make Reports and Whitepapers Stand Out
- Original Research: Do your own surveys, experiments, or case studies to uncover unique insights that AI can’t access. Original research is as valuable as ever (if not more so).
- Proprietary Data: Share data that you’ve collected from your own business or clients. Hubspot and Moz are great for this – they publish new marketing and SEO stats all the time based on data they gather from their huge customer base.
- Expert Insights: Go beyond the numbers and provide analysis, commentary, and predictions from industry experts. Include direct quotes and headshots – putting a face to the information adds credibility.
The Future of Lead Magnets is Bright (and AI-Proof)
Lead magnets are still the lifeblood of lead generation, even in this AI-dominated world. But the game has changed. To truly captivate your audience, you need to offer something AI can’t replicate – unique value, expert insights, and an irresistible experience.
Whether it’s a dynamic webinar, groundbreaking original research, a risk-free trial, or a personality-packed quiz, the key is to go beyond the basics and deliver something truly special.
At TrafficSoda (now better than ever as part of the REM Web Solutions crew), we’re lead generation experts. We’ve navigated the ever-changing marketing landscape, and we know what it takes to create lead magnets that convert. Contact TrafficSoda today and let’s make some magic happen!
Why Scaling Back Marketing in Hard Times is a Costly Mistake
One day, your business is cruising along smoothly, when BAM – the economy takes a nosedive.
Your first instinct might be to batten down the hatches, cut costs wherever you can, and ride out the storm.
Marketing, with its oft-seemingly-intangible returns, often becomes the first budget line to get the axe.
At first glance, this seems like common sense. Sacrifices must be made somewhere, and the short-term effects of scaling back marketing seem comparatively minimal.
But like a lot of things, once you scratch beneath the surface, you’ll find that there’s more nuance to this decision than it first appears.
Marketing as we know it – not just as the concept of promoting goods and services, but as a formalized discipline – has been around since before the Great Depression. According to the history of marketing, since then, it’s been around for plenty more difficult economic times: the 1970s Stagflation, the recession of the early 1980s, the Great Recession that peaked in 2008, and the brief but gruelling disruption of the COVID-19 pandemic.
And what we see, time and time again, is that when the going gets tough, marketing isn’t a luxury – it’s your business’s lifeline.
To put it simply, cutting marketing in a downturn is like switching off your headlights on a winding road. You might save a bit on gas, but you’re also setting yourself up for a potentially serious crash.
On the other hand, there are surprising ways that maintaining (or even increasing) your marketing efforts can not only help your business survive a recession, but thrive in the aftermath.
Let’s explain.
In case you missed it, TrafficSoda has joined forces with REM Web Solutions to bring you even more comprehensive digital marketing expertise. Check out REM’s Small Business Blog for more useful marketing resources or get in touch today for a free consult.
1. Customer Psychology Shifts in a Downturn
The conventional wisdom is this: “We’re hurting. So are our customers. So why waste money trying to convince them to buy stuff they can’t afford?”
Fair point. But what’s really going on in your customers’ minds during a recession isn’t quite that simple.
Research shows it’s not as cut-and-dry as, “less money = less spending.” Sure, people are watching their bank accounts more closely, but their desires and needs don’t disappear overnight.
In fact, when the economy gets shaky, consumers become more emotionally invested in their purchases. They’re not just buying products or services – they’re seeking reassurance, stability, and a sense of control.
During tough times, people tend to gravitate towards familiar brands or products during tough times. That’s because consistency fosters trust. Studies have shown that customers who have a strong emotional connection to a brand are more likely to stick with it through thick and thin.
When a company continues to market itself during a downturn, it sends a powerful message: “We’re here for the long haul. We believe in our products, and we believe in you.”
On the flip side, disappearing from the scene can be disastrous for your brand image. When consumers see a company scaling back on marketing, they might start to wonder, “Are they struggling? Are they going out of business? Should I even be buying from them?”
When you slash your marketing budget, you’re not just cutting costs. You’re potentially severing ties with your most asset – your loyal customers.
2. Your Competitors’ Retreat Is Your Marketing Opportunity
When the economy takes a downturn, it’s not just consumers who change their behavior – your competitors do too.
Many businesses make the knee-jerk reaction to cut marketing budgets, figuring it’s an easy way to save money. We’ve already touched on the dangers of this.
But here’s where the savvy business owner can make a power move. While your competitors are retreating, you have a golden opportunity to step up and claim some of their market share. Every dollar they cut from their marketing budget is a dollar you can use to amplify your voice, reach new customers, and solidify your brand’s presence.
To give a real-world example, that’s exactly what Kellogg’s did during the Great Depression.
While most cereal companies were slashing their advertising budgets, Kellogg’s boldly doubled theirs. They launched radio ads, introduced new products like Rice Krispies, and relentlessly promoted the nutritional value of cereal, positioning themselves as a reliable source of sustenance during tough times.
The result? A 30% increase in profits during the Depression, while their competitors struggled to stay afloat.
Even in recent economic downturns, companies like Amazon and Apple thrived by maintaining (and even increasing) their marketing investments. They understood that a recession isn’t just a threat, but a chance to gain a competitive edge.
Studies have shown that the cost of marketing in a recession drops due to decreased competition. This means your marketing dollars can go further, giving you a higher return on investment.
So, while your competitors are busy hunkering down, you can be out there building brand awareness, generating leads, and positioning yourself for a major rebound when the economy recovers.
3. Your Brand’s Reputation Is Worth Playing the Long Game
Okay, let’s say you’re still skeptical. Maybe you’re thinking, “Alright, I get it. Marketing is important, but when times are tough, I need to focus on the bottom line. Can’t I just ramp things back up when the economy gets better?”
Not so fast.
Think of your brand like a tree. You can prune a few branches to save resources in the short term, but if you cut back too much, you risk stunting its growth and weakening its foundation.
Marketing isn’t just about driving immediate sales. It’s also about nurturing a long-term relationship with your customers.
Brand equity – that all-important mix of awareness, loyalty, and reputation – is the fruit of your marketing labour. It’s what makes your brand more than just a name or a logo. It’s what makes people choose your product over the competitor’s, even if it costs a bit more.
Brand equity isn’t built overnight. It’s the result of consistent, sustained effort over time.
Think about your favourite brands – the ones you automatically turn to when you need something. How long have they been around? How often do you see their ads, hear their jingles, or interact with their social media?
Now, imagine if they suddenly went silent. What would happen to your perception of them? Would you still feel the same way?
Scaling back on marketing during a recession is a risky move. Sure, you might survive, but you won’t thrive. And when you make it out the other side, it’ll take a lot longer to recover than if you had continued to market and nurture brand equity.
There are plenty of cautionary tales out there:
- General Motors significantly reduced its advertising budget during the 2008 recession, hoping to cut costs. This led to a decline in brand awareness and sales, while competitors like Hyundai and Kia, who maintained their marketing efforts, gained market share. GM eventually filed for bankruptcy, and though they recovered, the brand suffered lasting damage.
- Starbucks temporarily closed hundreds of stores and reduced marketing in the recession. This move alienated customers and led to a decline in sales and brand perception. Starbucks eventually recovered by refocusing on customer experience and innovation, but it took time and effort to rebuild their reputation.
- While not solely due to recession cutbacks, Blackberry’s decline was exacerbated by their failure to adapt and invest in marketing when the smartphone market shifted post-2008. They didn’t effectively communicate their value proposition against newer competitors like Apple and Samsung, leading to a loss of market share and relevance.
Brands that slash their marketing budgets during previous downturns often struggle to regain their footing when the economy bounced back. Some even fade into obscurity. Why? Because they lost touch with their customers, their brand awareness dwindled, and their competitors swooped in to fill the void.
So, while it might be tempting to seek short-term savings by cutting back, think about the long-term cost. Your brand’s reputation is worth far more than a quick buck.
4. It’s Not About Spending More, It’s About Spending Smarter
We’re not going to sugarcoat it: marketing in a recession requires a bit of a balancing act. You want to keep your brand in the spotlight without breaking the bank.
The good news is, you don’t have to choose between staying visible and staying profitable. It’s all about adapting your strategy to the new economic reality.
During a recession, it’s time to ditch the flashy tactics and opt for a more practical, value-driven approach. What does that look like in practice?
- Emphasize Value: Instead of focusing on aspirational messaging, highlight how your product or service can help customers save money, reduce stress, or improve their lives in tangible ways.
- Double Down on Loyalty: Your existing customers are your most valuable asset. Offer them special deals, exclusive content, or personalized experiences to show you appreciate their business.
- Get Creative with Content: Don’t just talk about your products; offer valuable insights, advice, or entertainment that resonates with your target audience.
- Embrace Digital: Digital marketing channels are often more cost-effective than traditional advertising. Explore social media, email marketing, and SEO to reach your customers where they’re spending their time.
Take Ford, for example. During the Great Recession, they launched the Drive One campaign, which invited potential customers to test drive their vehicles with no obligation to buy. This low-pressure approach resonated with consumers who were feeling cautious about spending money.
Or consider P&G, who during the 2008 recession shifted their focus to promoting the value and affordability of their everyday products. This resonated with consumers who were looking for ways to cut costs without sacrificing quality.
The key takeaway? Marketing during a recession isn’t about throwing money at the problem – it’s about being smart, adaptable, and customer-focused.
Rethink Scaling Back Marketing
Recessions are like uncharted waters. It’s easy to get swept up in the panic, to focus on the immediate threats, and to forget about the long-term destination.
But remember, a ship without a course is at the mercy of the storm. Your marketing strategy is that course – it’s what will guide you through the rough seas and lead you to calmer waters.
Don’t make the costly mistake of abandoning your marketing efforts when you need them most. Instead, embrace the challenge, adapt your approach, and seize the opportunities that a downturn presents.
Recession Proofing Your Sales Funnel: The Benefits of Awareness Advertising in 2023
Dive into the ways that awareness advertising can recession-proof your sales funnel and get insights on how to use it effectively.
A recession may seem like the time to cut back on advertising, but it’s actually the perfect opportunity to increase your visibility and come out even stronger.
In fact, study after study has shown that cutting back on advertising during a recession actually hurts your brand, sales funnel and bottom line in the long run.
If you want to stay top-of-mind during a recession, you can’t afford to go dark. Brands that cut back on their ad spend during a recession put themselves at risk of losing customers and market share, as the data clearly shows.
- McGraw-Hill Research looked at 600 companies from 1980 to 1985 and showed that those that maintained or increased their advertising spend during the 1981 recession had sales that were 256% higher than those that didn’t by 1985.
- In 2008, Millward Brown shared evidence that 60% of the brands that went ‘dark’ during an economic downturn saw a significant decrease in brand use and brand image.
- More recently, Kantar Group estimates that brands who went dark to save costs in the early part of 2020 will see a 39% reduction in brand awareness and delay recovery.
If you want to ride out a recession and emerge on top, you can’t afford to skip awareness advertising — a type of advertising designed to make a brand or product more familiar to consumers at the top of the sales and marketing funnel.
Don’t let a recession make your brand fade into the background. Keep reading to learn the benefits of awareness advertising during a recession, along with tips and best practices for adapting your marketing strategy to tough economic times.
Highlights:
- Historical data shows that advertising during a recession can give businesses a competitive edge and lead to success when the economy rebounds.
- During a recession, sales cycles become longer, and awareness advertising can help businesses connect with potential customers earlier in the buying process, create a larger pool of prospects, and increase brand recognition and reputation to build trust and loyalty.
- By understanding your target audience, telling stories that connect, and being authentic and transparent, you can create campaigns that resonate with your audience, build trust, and help your business succeed in difficult economic times.
Why Awareness Advertising is Key to the Recession-Proof Sales Funnel
During tough economic times, sales cycles tend to become longer as customers become more careful in deciding what and when to buy.
Your customers spend more time in the consideration phase, conducting more research, comparing products more closely, and taking longer to decide on a purchase during an economic downturn.
In other words, the sprint becomes a marathon — and your business has to keep prospects engaged and interested throughout the process.
But in some ways, a longer sales cycle is a blessing in disguise. It gives you more opportunities to connect with customers and demonstrate the value of your product or service.
One of the best ways to keep a longer funnel flowing during a recession (without increasing ad spend) is to reallocate more budget to awareness advertising aimed at the top of the funnel (TOFU).
Awareness advertising is designed to create a lasting impression that keeps your brand, products or services front and center. These ads are typically aimed at a broader audience to attract potential customers who may not yet be familiar with your brand.
By casting a wider net and reaching more people earlier in the sales cycle, you can create a larger pool of prospects to warm up and convert into customers over time. Awareness ads help you connect with potential customers earlier in the buying process so that, once those prospects are ready to make a purchase decision, they are more likely to turn to your brand over others since you have already established a relationship with them.
In addition, awareness advertising can help businesses to build brand recognition and reputation, increasing consumer trust and loyalty.
By allocating more of your advertising towards TOFU awareness-based campaigns, you lay the groundwork for a more effective sales funnel that helps warm prospects and close more sales — even in the midst of a recession or other economic challenges.
Awareness Advertising vs. Other Types of Advertising
The primary objective of awareness advertising is to enhance brand recognition and promote customer engagement, in contrast to direct response advertising, product advertising, and promotional advertising, which serve different goals.
- Direct response advertising: Direct response advertising is designed to elicit a specific response from the consumer, such as making a purchase, filling out a form, or calling a phone number. Unlike awareness advertising, which is focused on building brand recognition, direct response advertising is intended to drive immediate sales or leads.
- Product advertising: Product advertising is focused on promoting a specific product or service. While awareness advertising can be used to support a particular product or service, its primary goal is to build brand recognition and customer engagement. Product advertising, on the other hand, is designed to showcase the benefits and features of a particular product or service to potential customers.
- Promotional advertising: Promotional advertising is focused on promoting a specific deal or offer, such as a discount or free trial. While awareness advertising can be used to support promotional advertising, its primary goal is to build long-term brand recognition and customer engagement.
In general, awareness advertising is most effective when used in conjunction with other types of advertising. By building strong brand recognition and customer engagement, businesses can position themselves for long-term success and increase their chances of success with other types of advertising.
Does It Work? Case Studies on Advertising During a Recession Say Yes
The numbers don’t lie – history shows that advertising during a recession can be a game-changer for businesses looking to gain a competitive edge.
In fact, some of the most successful companies in history have continued to advertise during tough economic times and emerged even stronger once the recession ended.
Take the recent public health crisis. When COVID-19 forced people to stop traveling, VRBO and Airbnb responded in very different ways. While Airbnb scaled back its advertising, VRBO saw an opening and increased its spending to $90.8 million in advertising from January to February 2021. The strategy paid off, with VRBO seeing a 61% recovery in bookings while Airbnb’s bookings dipped by 15%.
In a sea of struggling travel businesses, VRBO found a way to come out on top – by investing in advertising when others held back.
Another well-known example comes from the recession of 1990, in the responses of three fast food giants: McDonald’s, Pizza Hut, and Taco Bell. When times were tough, McDonald’s cut its advertising budget, while the smaller competitors Pizza Hut and Taco Bell strengthened theirs. As a result:
- Pizza Hut increased sales by 61%.
- Taco Bell increased sales by 40%.
- McDonald’s sales decreased by 28%.
Want to grab a bigger slice of the market during a recession? Follow Pizza Hut and Taco Bell’s lead and ramp up your advertising efforts, while the competition holds back.
Then there’s Amazon. Even during the Great Recession, Amazon continued to innovate with new products despite the slumping economy, most notably with the new Kindle products – supported by millions spent on advertising. When the rest of the economy hit its nadir, Amazon’s sales rose by 28%.
When the going gets tough, the tough get innovative. Amazon proved this during the Great Recession by continuing to invest in new products and advertising, and reaping the rewards with a surge in sales.
These are just a few of the countless examples demonstrating that companies that invest in advertising during a recession can come out ahead when the economy rebounds.
By keeping their brand top-of-mind for consumers and continuing to offer value and promotions, these companies were able to maintain or increase their market share and build customer loyalty.
Awareness advertising during a recession can pay off in spades, as the historical data demonstrates.
Benefits of Awareness Advertising During a Recession
When times get tough, businesses need to get creative to maintain or grow their market share. That’s where awareness advertising comes in.
Here are a few reasons why awareness advertising can be a powerful tool for businesses during a recession:
- It strengthens brand recognition: Awareness advertising can help businesses build strong brand recognition, keeping them top-of-mind throughout a longer sales cycle so that customers remember the brand when they’re finally ready to buy.
- It increases customer engagement: By communicating with customers through advertising, businesses can create a stronger connection with customers, showing them that they are still here, still providing value, and still committed to serving their needs.
- It leverages lower competition: When other businesses are tightening their belts and cutting back on their advertising spend, there is a unique opportunity for companies to take advantage of awareness advertising and gain an edge over their competitors.
By building brand recognition, increasing customer engagement, and positioning for long-term success, businesses can emerge from a recession as stronger players in their respective industries.
1. Strengthen Brand Recognition
One of the most important benefits of awareness advertising during a recession is its ability to build and strengthen brand recognition.
During tough economic times, many consumers cut back on their spending, making it more challenging for businesses to compete.
However, by keeping their brand top-of-mind through awareness advertising, businesses can increase their chances of being chosen over their competitors when consumers do decide to make a purchase.
In addition to helping businesses stand out in a crowded marketplace, building brand recognition through awareness advertising can also lead to increased customer loyalty.
When consumers have a positive association with a brand, they are more likely to choose that brand over others, even when there are cheaper or more convenient options available. In a crowded market, positive brand associations are worth their weight in gold.
As well as building brand recognition, awareness advertising can help businesses establish themselves as thought leaders. Awareness ads provide businesses with the chance to show customers that they are knowledgeable and experienced in their fields. It’s not enough to be good at what you do – you also need to show it. By doing so, your business can build trust and authority which pays off in the long run.
The ability to keep your brand at the top of people’s minds and establish yourself as an industry leader will provide your business with a position to emerge from a recession as a strong player.
2. Increase Customer Engagement
In a time of financial uncertainty, customers need more than just a sales pitch.
Many consumers feel nervous about their finances during a recession, so they’re more cautious about their spending. In this environment, it’s important for businesses to find ways to engage with their customers and demonstrate the value they can provide. This is where awareness advertising comes in.
By sharing stories and experiences that resonate with their target audience, businesses can create a sense of community and belonging that can keep customers coming back. For example, a restaurant might use awareness advertising to showcase its commitment to using locally sourced ingredients, or a clothing brand might use awareness advertising to highlight its commitment to sustainability.
Through awareness advertising, your business can show customers that you are still here, still providing value, and still dedicated to serving them, even in the toughest of times. In a world of faceless corporations, that kind of connection and authenticity makes a world of difference.
3. Leverage Lower Competition
As businesses cut back on their advertising and marketing spend during a recession, competition for customer attention goes down as well. This can be a valuable opportunity for you to take advantage of awareness advertising and gain a stronger foothold in your industry.
- With fewer businesses vying for ad space and airtime, advertising costs may be lower during a recession. This can be especially beneficial for small businesses that may be operating on a tighter budget — more bang for their buck.
- With less competition for ad space and airtime, businesses may be able to increase their ad exposure and get their message in front of more people. This can be especially valuable for businesses that are looking to build brand recognition and increase customer engagement.
- With lower advertising costs and increased ad exposure, businesses may be able to achieve a better return on investment (ROI) with their awareness advertising efforts during a recession.
By taking advantage of lower advertising costs, increased ad exposure, and improved ROI, your business can position itself for long-term success and emerge from a recession stronger.
Don’t wait for the storm to pass – make your move now. Use awareness advertising to seize the opportunities that a recession presents and come out on top, stronger and more successful than ever.
Strategies for Effective Awareness Advertising During a Recession
In a time of economic uncertainty, your advertising needs to work harder than ever.
So, how do you create an awareness advertising campaign that will stand out and make an impact during a recession?
- Know your audience better than anyone: To create an effective awareness advertising campaign, it’s essential to understand your target audience. Who are they? What are their needs and pain points? What motivates them to make a purchase? By understanding your target audience, you can create messaging and content that resonates with them and helps build a sense of familiarity and trust.
- Tell stories that connect on a deeper level: To create a strong connection with your target audience, it’s important to use storytelling and emotional appeals in your advertising campaigns. By sharing stories and experiences that resonate with your target audience, you can create a sense of community and belonging that can keep customers coming back.
- Be real and transparent: During a recession, it’s more important than ever to be authentic and transparent in your advertising campaigns. Be honest about the challenges that your business is facing, and communicate with your target audience in a way that shows that you care about their needs and are committed to serving them.
Use these tips to create campaigns that resonate with your audience, build trust, and help you weather the storm.
1. Know Your Audience Better than Anyone
When the economy is down, it’s imperative to understand how the spending behavior of your target audience may change. Harvard Business Review identifies four general segments that illustrate how consumers behaviour changes during a recession:
- The slam-on-the-brakes segment is the most vulnerable and suffers the greatest financial losses. These consumers reduce all types of spending by eliminating, postponing, decreasing, or substituting purchases. While lower-income consumers are usually part of this segment, higher-income consumers may also join it, particularly if their health or income deteriorates.
- Pained-but-patient consumers are resilient and optimistic about the long term, but less confident about the prospects for economic recovery in the short term. They economize in all areas, but less aggressively than slam-on-the-brakes consumers. This segment includes the majority of households unaffected by unemployment, representing a wide range of income levels. As the economic news worsens, more pained-but-patient consumers migrate to the slam-on-the-brakes segment.
- Comfortably well-off consumers feel confident about their ability to weather the economic storm. They spend at levels close to pre-recession, but tend to be more selective (and less conspicuous) about their purchases. This segment primarily consists of people in the top 5% income bracket, as well as those who feel secure about the stability of their finances. This group includes retirees, as well as investors who had low-risk investments.
- The live-for-today segment continues as usual and remains unconcerned about saving. These consumers respond to the recession mainly by delaying major purchases. They are typically urban and younger, more likely to rent than to own, and prefer spending on experiences rather than possessions (except for consumer electronics). They are unlikely to change their spending habits unless they become unemployed.
By understanding the impact of a recession on different consumer segments, businesses can create awareness advertising campaigns that resonate with their target audience and enhance brand recognition.
It’s also crucial to understand where your product or service falls on a scale from ‘essentials’ to ‘expendables’.
- Essentials are necessary for survival or seen as essential to well-being, and consumers are likely to continue buying these items even during tough economic times.
- Treats are indulgences that consumers may still splurge on occasionally, even if they cut back their spending in this category during a recession.
- Postponables are needed or desired items whose purchase can be delayed until the consumer’s financial situation improves.
- Expendables are perceived as unnecessary or unjustifiable, and consumers are likely to cut back their spending in this category during a recession, potentially eliminating these purchases altogether.
While basic levels of food, shelter, and clothing are essentials for all consumers, transportation and medical care are also often seen as essential. However, the assignment of specific goods and services to each category is unique to each consumer.
During a recession, consumers typically reevaluate their spending priorities. Products and services, such as dining out, travel, arts and entertainment, new clothing, automobiles, appliances, and consumer electronics, can quickly shift from essentials to treats, postponables, or expendables.
As consumer priorities change, they may eliminate purchases in some categories, such as household services, moving them from essentials to expendables. Consumers may also substitute purchases in one category for purchases in another, such as dining out (a treat) for cooking at home (an essential).
In a recession, consumers become more price-sensitive and less brand-loyal. They may seek out their favorite products and brands at reduced prices or settle for less-preferred alternatives. For instance, they may choose cheaper private-label products or switch from organic to non-organic foods.
2. Tell Stories that Connect on a Deeper Level
During a recession, businesses can build trust and emotional connections with their target audience by using storytelling and emotional appeals in their advertising campaigns.
Storytelling can create a sense of community, empathy and inspiration by weaving a narrative that resonates with the audience’s experiences. Emotional appeals can tap into the emotions that the target audience is feeling, whether it be fear, uncertainty or hope, to show that the business understands their struggles and is there to help them.
However, it’s important to be authentic and avoid exploiting emotions for the sake of sales. Messages should be positive, uplifting and empowering, reinforcing an emotional connection with the brand.
Worried consumers, including those in the comfortably well-off and live-for-today segments, often seek comfort in familiar and trusted brands during a recession. To build trust with their audience during tough times, businesses need to communicate reassuring messages that reinforce an emotional connection with the brand and show empathy.
3. Be Real and Transparent
During a recession, consumers are looking for brands that they can trust. When businesses are honest and genuine in their advertising, consumers are more likely to believe in the brand and feel that they have their best interests in mind.
Transparency is another crucial factor in building trust with your audience during a recession. Businesses need to be open and honest about their practices, including pricing, product quality, and any potential issues that may arise. This can help to establish trust with consumers and show that the business is committed to being transparent and upfront.
Being authentic and transparent can also help businesses to differentiate themselves from their competitors. By showcasing unique values and practices, businesses can stand out and appeal to consumers who are looking for something different.
While authenticity and transparency can help businesses to stand out during a recession, it’s essential to ensure that these qualities are genuine, rather than just a marketing tactic. Consumers can easily detect when a brand is being insincere, which can harm the brand’s reputation.
By prioritizing authenticity and transparency, businesses can build trust and foster long-term relationships with their customers. However, businesses should be careful to ensure that these qualities are ingrained in their values, rather than just a superficial marketing strategy.
Awareness Advertising: Your Key to Resilient Sales Funnel in a Recession
When the economy takes a hit, your sales funnel can take a hit, too. But with awareness advertising, you can keep the leads coming in and the sales rolling.
Navigating a recession as a marketer or business owner can be challenging. While it may be tempting to cut back on expenses, including your marketing budget, during tough economic times, this decision could have long-term consequences.
But we want to encourage you to stay the course and continue investing in your business, even in the face of a recession. The truth is that advertising during a recession can make a significant difference in your business’s ability to weather the storm
Instead of reducing your marketing efforts, consider investing in targeted and strategic campaigns that can help your brand stand out and build loyalty with your audience.
We understand that these are challenging times, and want to assure you that you’re not alone in this struggle. Our team of experienced marketers can help you develop a comprehensive and effective marketing strategy that will allow you to stand out from your competitors and connect with your target audience.
Whether you need help with awareness advertising, lead generation, or closing more sales, we’re here to help you achieve your marketing goals.
Geo-Targeting Blueprint: Discover How to Get More Leads, Sales, and Revenue with Location-Based Marketing
Whether you’re a small business looking to expand your reach or a large corporation looking to maximize your digital marketing ROI, geo-targeting can revolutionize the way you reach and engage with your target audience.
The power of geo-targeting is that it lets you reach the right audience in the right place at exactly the right time.
And with these tips and success strategies, your business can start using geo-targeting to generate more leads, sales, and revenue.
Get ready to take your marketing game to the next level with our tips and best practices as we dive deep into the world of geo-targeting to explore how it works, why it matters, and how you can make it work for you!
Contents:
- What is Geo-Targeting?
- How Does Geo-Targeting Work?
- Geo-Fencing vs. Geo-Targeting
- Why Geo-Targeting Matters for Your Business
- Creative Ways to Use Geo-Targeting to Drive Leads, Sales and Revenue
- How to Use Geo-Targeting on Facebook, Google Ads & More
- Facebook and Instagram
- Google Ads
- Geo-Targeting Done Right: Proven Tips and Strategies for Success
- Maximize Your Marketing Results with the Power of Geo-Targeting
What is Geo-Targeting?
Have you ever wondered why the advertisements you see online or on your social media feed are specifically tailored to your location?
That’s the magic of geo-targeting.
Geo-targeting in digital marketing is the practice of delivering personalized content or advertising to people based on their geographical location, with the goal of maximizing your marketing messaging’s relevance and impact in specific locations.
It works by using location data such as IP addresses, GPS coordinates, and other technologies to pinpoint a user’s location. The next section of this article will go over these geo-targeting methods in depth.
With geo-targeting, you can tailor your offers, information, and advertisements to specific geographic areas such as cities, regions, or countries. If you want to get really specific, you can even target a single zip code or postal code.
You can also use geo-targeting to exclude geographical locations that are unlikely to produce results or are not relevant to your campaign. In fact, excluding certain locations can be just as valuable as including others.
Bottom line: geo-targeting helps you deliver more relevant and effective marketing campaigns across a wide range of digital marketing channels — including PPC advertising, social media marketing, and email marketing.
How Does Geo-Targeting Work?
Geo-targeting works by using location data to pinpoint a person’s geographical location, then delivering personalized content or advertising to them based on their location…or, if you exclude that location, blocking people there from seeing your content or advertising.
There are several ways to gather location data, including:
- IP Address Targeting: Determining a person’s general geographic location based on their IP address. This is the most common geo-targeting method in PPC advertising.
- GPS Targeting: Using GPS technology to track a person’s exact location through their smartphone or other GPS-enabled device. This method is usually used for in-app advertisements or location-based services.
- Radius Targeting: Setting a geographic radius around a specific location, such as a store or business, and delivering targeted content or advertising to people within that radius. Great for hyper-local advertising, such as targeting conference attendees, university students, or employees at a specific business.
- Wi-Fi and Bluetooth Targeting: Using Wi-Fi and Bluetooth signals to triangulate a person’s location based on their proximity to nearby hotspots or beacons. Many businesses take advantage of this method to deliver in-store advertising or to track foot traffic.
- Location-Based Keyword Targeting: Targeting people who are searching for specific keywords related to a specific location, such as “pizza delivery near me.” These are a cornerstone of both Google Ads and SEO to reach users who are actively searching for local products and services.
- Contextual Targeting: Estimating a person’s location or interests based on contextual data collected from a website or app. It’s often used in programmatic advertising to deliver relevant ads based on individual users’ interests and proximity to said interests.
Once location data has been gathered, platforms like Google Ads and Facebook can use it to deliver personalized content or advertising to your prospective customers based on their geographic location.
For example, your business could use geo-targeting to show different advertisements to users in different cities or regions, or to promote location-specific promotions or offers.
The possibilities with geo-targeting are endless. If you want help getting started or taking your geo-targeted marketing to the next level, our experts are here to help!
Geo-Fencing vs. Geo-Targeting
Geo-fencing and geo-targeting are two related but distinct marketing techniques that use location data to target specific audiences.
Geo-fencing is a type of location-based marketing based on setting up a virtual boundary around a specific geographic location. When someone enters or leaves this boundary or “fence”, it triggers an action such as delivering a targeted message or showing a specific advertisement on their device.
Geo-targeting, on the other hand, refers to the practice of delivering personalized content or advertising to users based on their physical location. This can be done through IP address, GPS, or other location-determining technologies. Geo-targeting allows marketers to reach customers in specific geographic areas, such as cities, regions, or countries.
In short, geo-fencing is a more specific form of location-based marketing that involves a small virtual “fence”, while geo-targeting is a broader approach that uses various kinds of location data to personalize content or advertising.
The Power of Location: Why Geo-Targeting Matters for Your Business
With geo-targeting, marketers can deliver more relevant and personalized content based on the physical location of their target audience.
The use of geo-targeting in digital marketing is advantageous for a number of reasons, including the following:
- Increased Relevance: Geo-targeting allows you to deliver content or advertising that is specific to a prospective customer’s location, making it more relevant to their interests and needs. This leads to higher engagement and conversions, since prospects are more likely to respond positively to content that is relevant to them.
- Better Targeting: By targeting prospective customers based on their physical location, you can ensure that your messages reach the right audience at the right time. For example, you can use geo-targeting to show different advertisements to users in different cities or regions, or to display location-specific promotions or offers.
- Improved ROI: Geo-targeting can help you achieve better ROI by delivering higher click-through rates, conversions, and customer engagement, which ultimately drives better results and a better return on your digital marketing investment.
- Hide Ads from Competitors: Say you want to keep your competitors from stealing your offers or marketing messages. You can use geo-targeting to hide ads from competitors by excluding specific geographic locations where the competitor operates or has a strong presence, or by adjusting the targeting criteria to only show the ad to users who are not within a certain radius of the competitor’s location.
- Responsiveness: Geo-targeting allows you to run short-lived but highly relevant campaigns, such as offers specific to the people attending an industry conference or trade show. Or, if you’re a roofing contractor, you can display ads related to roof repair in a town that just experienced bad weather. Taking dynamic advertising to the next level!
No matter what size your business is or what you do, geo-targeting can revolutionize the way you share and engage with your content!
Creative Ways to Use Geo-Targeting to Drive Leads, Sales and Revenue
With geo-targeting, businesses like yours can reach the right audience, at the right time, with the right message, resulting in higher engagement and conversion rates.
Here are just a few of the various ways that geo-targeting can be used to boost your digital marketing revenue, including targeting specific locations, matching local currencies, delivering real-time offers, and more!
- Geo-target offers and information: Use geo-targeting to deliver location-specific information, promotions, and offers to current and prospective customers. This enables you to generate more business in a particular region without having to make the same offer to everyone, or market different offers for franchises in different locations.
- Match local currencies: With geo-targeting, your e-commerce website can display prices and other information in the customers’ local currency based on their location automatically. This happens so often nowadays that we barely notice it, but geo-targeting makes it possible!
- A/B test based on location: Geo-targeting allows you to deliver different versions of an ad and/or website to people based on their location, making it possible to test different designs and layouts and see what’s most effective in different regions.
- Steal customers from competitors: With geo-targeting, you can deliver targeted ads to people who are near a competitor’s store or office to entice their customers away. Say you’re browsing Instagram while stuck in a long line at Disney, and see an ad for Universal promising shorter wait times — that’s geo-targeting!
- Use lookback data to get granular: The ‘lookback window‘ is the period during which a person can see or click on an ad and it will be recorded as a conversion. Using look-back data and geo-targeting together, you can analyze where a user was at the time they converted and uncover location trends that help you deliver more relevant and engaging content.
- Market across channels: Using geo-targeting, you can deliver targeted ads and content to different platforms and devices based on the user’s location. A local restaurant, for instance, could use geo-targeting to promote walk-in specials to mobile device users nearby, and take-out specials to desktop users further away.
And that’s only the beginning. There are virtually no limits to the applications for geo-targeting. In that sense, it’s as valuable for the most local of local businesses as it is for huge multinationals!
To learn how geo-targeting can work for you, get in touch with our experts for a quick consultation.
How to Use Geo-Targeting on Facebook, Google Ads & More
Knowing how to utilize geo-targeting on each platform will make a huge difference in maximizing your digital marketing efforts and ROI.
Below, we’ll explore the various platforms that offer geo-targeting options, including Facebook, Google Ads, Twitter, Instagram, and LinkedIn.
Facebook and Instagram Location Targeting
Facebook and Instagram offer location targeting options for advertisers on the Meta Ads Manager platform, which allow you to reach people based on their current location, hometown, or recent location history. Advertisers can target users by country, state, city, postal code, or a specific address, and can also choose to target people who have recently been in a specific location.
To use Facebook or Instagram location targeting:
- Select a campaign objective for your ad set in Ads Manager.
- Select your audience source in the Audience section.
- Click on Locations and follow the prompts to choose your locations based on:
- Location status: target customers living in a location and/or recently in a location, or traveling in a location
- Enter a location: target customers in specific countries, states, provinces, cities, congressional districts (in the United States), or ZIP or postal codes
- Browse locations: choose from suggested countries or regions
- Location radius: target customers in a smaller, relevant area within a larger geographic area
Google Ads Location Targeting
Google Ads offers location targeting options, which allow you to show your ads to users in specific geographic locations. You can target by country, region, city, postal code, or a specific address, and can also target users based on their device’s location or by using a radius around a specific location.
To use Google Ads location targeting:
- Go to the Settings tab in your campaign.
- Select Locations and specify the geographic locations you want to target based on:
- Countries: target customers in an entire country, or multiple countries
- Areas within a country: target customers in specific cities, regions, or ZIP/postal codes
- Radius around a location: target customers within a certain distance from your business
To exclude people in specific geographical locations from seeing your ads:
- Go to the Settings tab in your campaign.
- Select Locations.
- There are two ways to select locations to exclude:
- In the search box, type the area you want to exclude and click Exclude.
- Click Advanced search, and check the box next to Add locations in bulk. In the box, paste up to 1000 locations to exclude. Add locations from one country at a time.
Twitter Geo-targeting
Twitter allows you to target their ads based on the location of the user by countries, regions, metros, cities, or postal codes. You can also target users based on their device’s location.
To use Twitter geo-targeting:
- Go to the Targeting section of your ad campaign.
- Scroll down to Demographics.
- Within the Locations section, input the locations you want to target.
Radius targeting (showing ads to customers within a certain distance of a specific address) is currently only available to ad accounts in the United States or Japan.
LinkedIn Geo-targeting
LinkedIn allows you to target users by country, state, city, postal code, or a specific address, and can also target users who have recently been in a specific location.
To use LinkedIn geo-targeting:
- Create a LinkedIn new audience in Campaign Manager.
- Customize your target audience’s location(s) following these steps:
- Choose either a Recent or permanent location or Permanent location from the Locations dropdown.
- In the search field, type the location name you want to include in your targeting audience and select the desired locations.
- Add more locations by clicking the X at the end of the location search field to clear the field.
- Remove selected locations from your target audience by clicking the X next to the location name.
- Click Exclude and select the regions and/or countries you want to exclude from your campaign.
Geo-Targeting Done Right: Proven Tips and Strategies for Success
Geo-targeting is a powerful tool for digital marketers, but you have to deploy it strategically with purpose to maximize your results.
Your geo-targeting efforts are more effective and drive better results when you incorporate the following key considerations and best practices.
- Be precise in defining your location. To achieve the best results with geo-targeting, you need to reach people who want your product or service, are able to pay for it, and in the case of a local business, are close enough to travel. Additionally, areas that are too small will strictly limit your potential conversions, while areas that are too large will waste ad dollars on irrelevant audiences. You need to strike a balance between making sure your ad spend is being used effectively and reaching a large, relevant audience.
- Exclude irrelevant locations. As well as targeting specific locations, it’s also important to exclude locations that are unlikely to generate conversions. Your ad spend will be more effective and you’ll avoid wasting money on ineffective campaigns.
- Use tools like Google Trends to gain insight into your customers’ regional preferences. Identifying how their interests and habits differ on a regional basis will help you hone in on messaging and imagery that boosts your geo-targeting efforts.
- For search ad campaigns, include regional terms in your keyword lists even if you are geo-targeting. Your campaign will have a higher chance of success if you reach a more relevant audience.
- If possible, include your target location’s name in your ad. You can improve your campaign’s relevancy and impact by including the name of your target location in your ad, helping you connect with local customers and build brand awareness in the target area.
- Add location extensions and call extensions to local ads. Location extensions and call extensions can be incredibly valuable in local ads, since they provide your customers with important information like your address and phone number instantly. The easier people can reach you, the more likely they are to convert.
- Test, monitor, optimize, repeat! As with any campaign you launch, geo-targeting campaigns should be monitored to identify what’s working and what’s not so you can adjust to achieve better results.
You can explore and leverage so much more when it comes to geo-targeting, but the above are good tips for beginners.
Maximize Your Marketing Results with the Power of Geo-Targeting
By tailoring your marketing campaigns based on location, you can boost your ROI and improve your overall marketing performance.
The geo-targeting methods, tips, and best practices shared in this article will help you get the most out of your geo-targeting efforts, but there is always more you can optimize. When you’re ready to take your digital marketing to the next level, contact us today.
Holiday Marketing Campaigns: 7 Best Ideas to Boost Your Sales Over Christmas
There’s a million holiday marketing campaign ideas out there. But what actually works?
If you sell anything online, you probably know the struggles of marketing in the chaotic holiday season.
You’re swamped with work, half your team’s on vacation (or sick), and the sheer competition for consumer attention is absolutely off the charts.
But success doesn’t depend on a Christmas miracle. Or a fortune’s worth of ad spending.
Stats and experience show that you can do a lot to boost your holiday sales if you use the right kind of data, make proactive moves, and apply some basic (but powerful) marketing psychology.
In this article, we’ll give you 7 of our best holiday marketing campaign ideas ‒ plus 3 essential tips to make sure you rock them.
- Leverage the Christmas Time Crunch
- Win Hearts & Minds With a Holiday Video
- Share the Love with Your Loyal Customers
- Ring In the Season with Holiday SEO Blog Content
- Conquer the Wish List with Price-Specific Landing Pages
- Make Gift-Giving Easy with Gift Card Promotions
- Embrace Holiday Themes Across Your Digital Presence
1. Leverage the Christmas Time Crunch
FOMO is your friend.
As soon as November rolls around, people start stressing about holiday shopping. And it’s not just about gifts, but everything else you need for the perfect holiday: festive decorations, holiday meal prep, plane tickets to Grandma’s, and more.
Time is of the essence, and everyone knows the best stuff is in short supply.
So, you can make fear of missing out (FOMO) and scarcity powerful allies in your holiday marketing campaign.
Now, urgency isn’t something you can just throw around without thinking. The modern consumer is pretty wise to vague statements like “limited time offer” or “while supplies last.”
You need to translate that urgency into something concrete and effective, like:
- Deadline for guaranteed delivery in time for Christmas. Consumers expect lightning-fast shipping these days, but they know things slow down over the holidays. Consider using it as a strength by putting pressure on people to make a purchase by a specific date. It has a very powerful effect.
- Countdown timer until Christmas or another big milestone. Adding a countdown timer to your landing page can boost revenue by as much as 9%. Over the holidays, countdown timers are extra effective since everyone already has “X days until Christmas” in their minds.
- Inventory warnings. “While supplies last” is vague, but it really works if you can give a specific number. This is a very effective strategy used by Amazon to move products in short supply.
It’s not just a holiday marketing trick. You’re giving your customers one last chance to purchase that perfect gift before it’s gone, and they’ll thank you for it. It’s just that a positive side effect of this is that conversions increase as well!
2. Win Hearts & Minds With a Holiday Marketing Video
A 30-second video says a million words.
As a rule, people are more likely to say ‘yes’ to requests from people they already know and like.
We’re all less likely to turn down a request if it’s from a friend or neighbor.
The same goes for you and your loyal customers. People who know and like you are automatically more likely to take advantage of any future offer you make to them.
Since the holidays are such an emotional time of the year, this is the perfect time to cultivate positive brand recognition and relationships that ultimately lead to more revenue.
And there’s no better way to do that than with a holiday video.
You don’t even have to make it long, expensive, or highly choreographed. Simply showing the faces behind your business and being relatable makes a big impact on people.
Basically, all you have to say is, “We’re so excited about the holidays, too, and we wish all of you who celebrate a Merry Christmas. Thank you for being part of our business.”
3. Share the Love with Your Loyal Customers
A little love goes a long way.
Reciprocity is a powerful thing. It is natural to feel obligated to repay someone when you give them something. It’s why free samples remain one of the most effective marketing tactics of all time.
And what better time to give something away than during the peak gift-giving season?
The holidays are a great time to shower your loyal customers with discounts, freebies, and giveaway contests to make them feel extra special.
Especially if you can tie in some urgency and a warm message of gratitude, too.
Leading up to December 25, many brands offer holiday-themed “12 Days of Giveaways” or “12 Days of Discounts” which successfully combine the seasonal spirit with persuasive deadlines.
Plus, you have plenty of options for spreading the word about these promotions:
- Email: You can reach your existing customers and followers through multi-touch email campaigns in the lead up to the holidays.
- Social media: Great for reaching loyal followers and catching the attention of new ones. You just need to make sure you follow Facebook, Instagram, and other platforms’ guidelines if you’re hosting a holiday marketing giveaway, since they can be quite prickly about the rules.
- Remarketing ads: Retargeting helps you re-engage bounced buyers to boost your holiday marketing ROI, and further build relationships with those who have already purchased.
It’s the holidays, after all, and there’s no better time of year to get something for free!
4. Ring In the Season with Holiday SEO Blog Content
Any businesses with a seasonal niche can benefit greatly from blogging.
For example, if you sell Christmas-themed decorations or clothing, a well-optimized SEO blog post will see traffic spike around the winter holidays year after year after year.
But what if your company doesn’t have a seasonal niche?
Putting out holiday-themed blog content is still a great way to increase traffic, sales, and revenue for businesses with no holiday-specific products.
Consider what kind of content people are looking for during the holidays and incorporate it into your holiday marketing ideas! For example:
- Gift ideas for specific customer segments/demographics: like 10 Winning Gift Ideas for Dad, or the Best Office Secret Santa Ideas Under $25.
- Holiday Buying Guides for specific product categories: like High-End Cookware Holiday Buying Guide, or the Holiday Gift Guide to Pens & Journals.
- Gift ideas that solve a specific problem: like the 10 Most Practical Busy Mom Gifts, or Impressive Gifts for a Father-In-Law You Just Met.
Topics like these will attract people who are actually interested in what you sell, and they don’t require you to bend over backwards to fit the holiday theme. It’s just a matter of describing the products that you already have available, with a festive bow tied around it.
Start publishing this year, and by next December, you’ll have plenty of content on your site that will get your visitors excited for the holidays again. Next year, just update your holiday SEO blog content (and your holiday marketing campaign as a whole) with new products or trends. You’re good to go!
5. Conquer the Wish List with Price-Specific Landing Pages
Speaking of gift guides…if you sell online, here’s another way to reach eager holiday shoppers:
A landing page that highlights products within a specific budget range to appeal to gift shoppers.
For example, a landing page featuring “Gift Ideas Under $50” or “Stocking Stuffers.”
These pages make it easy for people to find what they’re looking for, which means more conversions for you. They’re especially a huge hit with last-minute shoppers or Secret Santa participants who don’t have much else to go on.
But this holiday marketing campaign strategy doesn’t only benefit sales of your cheaper products ‒ because a lot of people value not underspending on certain people in their lives.
People shopping for significant others or close friends or relatives might be drawn to a page featuring only more expensive items (even your most expensive items).
All you need to do once you’ve created the pages is get the word out, which is easy to do by:
- Email campaigns with ultra-specific and attractive subject lines are designed to catch the attention of shoppers in a certain price range in search of ideas
- Organic social media posts that encourage your loyal fans and followers to share your posts with their networks for free
- Social media ads, especially when combined with a sense of urgency…save big on your last-minute shopping with these awesome products for under $50!
The price point is the decisive factor for many people when they are shopping online, and this tactic makes them feel like they are getting an exclusive deal just for them!
6. Make Gift-Giving Easy with Gift Card Promotions
For people who are struggling to find the perfect present, gift cards save the day.
But just because you’ve got gift cards, that doesn’t mean shoppers know about them. It will be up to you to spread the word.
Don’t let the holidays pass you by without promoting your gift cards to your target audience. Once the shipping deadline for the holidays has passed, shift your digital advertising efforts to digital or physical gift cards.
Gift cards are also great to include in holiday giveaways and promotions. Providing a free gift card for those who make a minimum purchase, or to the first few purchasers, can be the tipping point that gets people to choose you over your competitors.
7. Embrace Holiday Marketing Themes Across Your Digital Presence
Picture yourself walking downtown on a mid-December afternoon, when the stores are all crowded and Christmas is in the air.
You’re mulling over which of two stores to visit for a must-have gift item. One store is decked with garlands and wreaths, playing holiday music, and scented with gingerbread cookies; the other is sterile, dark, and overall a bit uninviting.
Obviously, most people would go for store number one. The festive ambiance gets them in the mood to shop.
And there is more to it than just warm feelings ‒ we associate holiday designs with holiday savings. You know there’s a deal to be had and you want to learn more.
Why not apply this same idea to your digital presence?
It’s easy, inexpensive, and effective to incorporate holiday-themed graphics, colors, and messages into your website, landing pages, emails, and social media accounts.
It has the same positive impact of putting up Christmas decor, without the hassle of climbing ladders or untangling lights.
3 Tips For a Successful Holiday Marketing Campaign
You can make your holiday campaign as simple or as complex as you like. Regardless of the approach you choose, these tips will help you make your campaign a success!
1. Review Previous Holiday Marketing Campaigns
Don’t let the Ghost of Christmas Campaigns Past come back to haunt you.
Even if your previous campaigns aren’t as relevant now, you can still learn a few things from them. Past performance helps you better understand your audience and what works (and doesn’t work) for them.
Don’t just focus on your performance stats, look at your customer data too. Have you seen a significant change in your customer base? Knowing your customers will help you create holiday messages that will hit home.
2. Get Ahead of the Holidays
Customers can hardly stand the wait; so please, reader, don’t be late!
We’ve got bad news for all the procrastinators out there: most people plan to finish their Christmas shopping before December even starts.
In fact, 58% of shoppers plan to be done their Christmas shopping in November. You’re losing out on tons of potential sales if your holiday marketing campaign isn’t in full swing before December.
By planning ahead, this will allow you more time to focus on other aspects of your business like customer service and inventory when the season is actually in full swing.
3. Put Customer Service First
He knows if you’ve been bad or good. So do your customers.
89% of people have switched to a competitor after experiencing a poor customer experience.
And up to 95% will spread the word about that negative experience with other people.
So no matter how awesome your holiday marketing campaign is, if you don’t back it up with rockstar customer service, you can’t call it a success.
If your customers have any questions or problems, your customer service team needs to be ready to help. If you ship products, you need to make sure they’ll arrive on time.
About your website. Is it able to handle the number of people shopping at once? If there are any technical issues, do you have a team on the ground to deal with them?
Given the mad rush this time of year, it’s not always easy for companies to handle customer’s complaints and requests with the efficiency and dedication they deserve. However, you cannot afford to ignore it.
The answer may be outsourcing your holiday marketing campaign to a professional digital marketing agency.
Outsourcing your holiday marketing campaign will give you more time to focus on customer service and get back control of your business while still reaping the benefits of being active online.
Marketing Your Way to a Merry Christmas
Marketing is an important part of any business, especially around the holidays. It’s a chance to create a lasting impression and to remind your customers what your brand stands for.
We can help you put together a great holiday marketing campaign that will get you in front of your potential buyers and support your sales goals. Get in touch with our digital marketing experts to learn more about our services here at TrafficSoda.