When advertising costs are increasing, how do we prevent this from affecting ROI?

Lush recently revealed its ‘big tech rebellion’ by moving away from Google ads. As more brands favour smaller and more ethical digital companies, brands are beginning to think outside the box when it comes to paid advertising.

Platforms like TikTok are reducing their prices in order to beat their competition. By catering to brands with smaller budgets, these digital advertising spaces could convince more brands to move away from the bigger tech companies.

This week, we chat with Managing Partner Matt Scott from Dodo Digital, to gain some insight into how brands can tackle the increasing advertising costs whilst making the most of digital ads.

Is it possible to use PPC or paid media with a reduced budget? If so, what is the best process to go about this with increased advertising costs?

While the budget required for a successful campaign depends on variables such as objectives and industry sector, it’s true that advertising costs have risen due to increased demand and competition for digital media placements.

If you’re new to paid ads, starting with a small budget may restrict your ability to experiment and identify a profitable audience. In such cases, it is worth considering the expertise of an agency or professional. They can leverage their experience, data, insights, and tools to help you hit the ground running more effectively. This approach can not only increase your chances of success but also potentially save you money in the long run!

For those already getting a positive return on investment (ROI) from paid ads but facing tighter budgets, there are options. Increasing efficiency with more testing can help maximise results, which tends to come from working that bit harder and smarter. Brands that allocate budgets specifically for testing new strategies and platforms are more likely to benefit from identifying innovative opportunities before there’s too much competition and saturation.

How will PPC and paid media change over the next few years?

The future of PPC and paid media will witness significant transformations driven by the emergence of new ad platforms, the strategic utilisation of first-party data, and the increasing role of artificial intelligence (AI).

As technology advances, we may see some existing ad platforms become less relevant while new platforms gain prominence. The dynamic nature of the digital landscape means that user preferences and behaviours evolve 

over time. This can lead to the rise of alternative platforms that cater to specific niches or offer unique targeting capabilities. For example, platforms like TikTok have rapidly grown in popularity as an advertising channel, presenting new opportunities for marketers.

In addition to the changing platform landscape, the effective use of first-party data will become increasingly crucial. First-party data refers to the information collected directly from customers or users, such as their behaviour, preferences, and purchase history. Advertisers can leverage this data to create highly personalised and targeted campaigns, enhancing the overall ad experience. By harnessing their own data, companies can reduce reliance on third-party sources and stay compliant with more stringent privacy laws.

Artificial intelligence and machine learning will also play a pivotal role in shaping the future of PPC and paid media. AI-powered automation will continue to advance, enabling advertisers to optimise their campaigns more efficiently and make better data-driven decisions. Machine learning algorithms can analyse vast amounts of data, identify patterns, and optimise ad targeting, bidding strategies, and creative elements. This not only enhances campaign performance but also frees up time for marketers to focus on strategy and creativity. However, advertisers should maintain control over their campaigns and be mindful of the platforms’ profit-driven motives.

Lush has recently moved away from Google Ads and invested in more ethical tech. Do you think companies are likely to follow suit or continually favour the bigger tech companies?

Ultimately, companies tend to favour tech giants due to their competitive offerings and proven return on investment.

Lush’s decision to shift away from Google Ads and invest in more ethical tech reflects a noble move toward aligning their values with their advertising strategies. However, it’s important to consider that businesses need to survive and satisfy shareholders’ expectations, which often involves growth.

While some companies may choose to follow Lush’s path and prioritise tech solutions aligned with specific values, the reality is that larger tech companies often dominate the market for a reason. Alternative search engines like DuckDuckGo are promoted for their ethical stance, yet their user base remains a fraction compared to industry giant Google, which provides a more comprehensive and powerful solution for users and advertisers alike. 

This may change, but for now, getting good results tends to be the highest priority for most…

About Dodo Digital

Dodo Digital was born from a desire to deliver a genuinely high-quality agency experience.

They recognised that there was a common issue, that agencies tended to prioritise their own profits and growth – rather than the performance of their clients.

Dodo Digital has assembled a brilliant team of paid media experts, who are as motivated as them by the success of their clients.

For more marketing advice, read another of our helpful articles on the It Works Media blog. Alternatively, contact us today to find out how we can help you with your next marketing strategy.