Staying on Front Foot – Identifying the Current Market Trends amidst Rising Costs
Ever since the pandemic started the trends in Digital Marketing and E-commerce have been changing quite often. With the pandemic at rest, we now face the challenges of aftereffects like increases in prices and changes in consumer behaviour and spending pattern. Rising costs are a serious concern, 60% of all the participants of a McKinsey survey in the UK feel that rising costs are their biggest concern right now. To tackle this, the Government suggests cutting down marketing costs. But does that make sense?
Are your CPCs on the rise as well? Want to learn more about the reasons for the rise and improve your digital Strategy? Reach out to our specialists at 01793 238 697. Watch the full Front Foot webinar.
Lessons from Previous Years
While Henry Ford says, “Stopping Advertising to save money is like stopping your watch to save time,” “Never waste a good recession” were the words of Angela Ahrendts (CEO of Burberry). It is important for brands to look ahead with a positive outlook and use this time as an opportunity get a kickstart in capturing new customers. From prior experiences it is evident that the CPCs are lower during these periods. For every 2x increase in budget, brands capture ~3x market share (assuming that 90% competitors drop their budgets during times of crisis).
3 Reasons why your Cost per Clicks (CPCs) are rising
In 2021, there were 24k new online businesses registered which is 21% higher than that of 2020. Since Digital Media is the most reliable and promising channel, most of the contemporary brands invest in this space. These are potential competitors of your product or service which participate in the auction to drive up your costs.
Rising Personalisation Capabilities
The Quality Score is a key metric in understanding where you need to improve. A good Quality score implies a higher ad relevancy to the consumers search query, the right cost required to rank higher and the landing page experience of the users. Tailoring the product messaging, content on the website and then matching the consumers expectations is the key. The marketing strategy needs to be in line with providing these consumers a fresh messaging each time they turn back. A report from Google says that 90% of the marketers say that personalisation provides better profits. Another report by McKinsey states that early adapters of personalisation have a ~15% higher return than their competitors.
With technological advancements everywhere many of the big players use these technologies to supply a better experience to its users. The challenge for other brands now is to provide users an experience better than their previous best experience. Framing the right strategy on creating your brand’s own space among these big brands is the key. To help you with such strategies reach out to us: firstname.lastname@example.org – we would love to offer some initial consultative advice.
Our Top 5 Tips to Build a Better Digital Presence
Things might look a bit challenging ahead, but a few small, consistent efforts will reap multi-fold results over time. With better quality scores it is easier to build a greater digital presence.
- A 30% Search Impression Share (SIS) on a Generic search term related to brand yields great results.
- 2. Product differentiation and USPs need to be stated for SMEs to stand out of the competition.
Enhance User Experience
- Efforts need to be put in to provide the consumer his next best experience.
- Data plays a key role in understanding the consumer journey and finding the hurdles we as a business face. Leveraging this 1st party data to retarget the users and creating sub-conversion goals will help in retaining the consumers and eventually influence them to make a purchase.
Educate The customer
- Educating the consumer about the brand by creating a need for your product and focusing on meeting his expectations once he chooses you improves the Lifetime Value of a customer.
If you are interested to know what the best strategy for your brand is and how can you make the most of the current scenario, reach out to Infinity Nation and to discover how we can help you grow your brand, please do get in touch and we would be happy to meet you, alternatively reach us via our contact form.