Inflationary pressures are permeating various aspects of the economy, including the realm of digital advertising, where ad auctions are not immune to its effects. As we navigate through the challenges posed by rising costs, it becomes imperative to adopt strategic approaches that maximize the value derived from each click, rather than solely focusing on reducing the cost per click (CPC). This sentiment is echoed by industry experts who offer invaluable insights into effectively managing CPC inflation in the coming year.
One fundamental principle emphasized by experts is the need to validate and take ownership of campaign performance data. By ensuring the accuracy and reliability of data pertaining to expenses and revenue, advertisers can gain a comprehensive understanding of their advertising ROI and make informed decisions accordingly. Rather than fixating on individual key performance indicators (KPIs) like CPC, the emphasis should shift towards overarching business outcomes that drive profitability.
Furthermore, enhancing the quality of campaigns and the value of conversions emerges as a strategic imperative. This involves optimizing landing page user experience (UX), refining offers to enhance desirability, and targeting qualified audiences to maximize conversion potential. By prioritizing the optimization of conversion quality, advertisers can mitigate the impact of rising click costs and bolster overall campaign effectiveness.
Diversification also emerges as a key strategy for navigating CPC inflation, with experts advocating for targeting different intents, buyer stages, and platforms. By diversifying campaign approaches, advertisers can mitigate reliance on specific channels or keywords, thereby reducing vulnerability to fluctuations in CPCs and expanding audience reach.
A common theme underscored by experts is the importance of focusing on the value derived from each click, rather than fixating solely on reducing costs. Amy Hebdon, Founder + Managing Director of Paid Search Magic, emphasizes the importance of improving the overall campaign quality to extract more value from premium clicks. Similarly, Andrea Atzori, Director at Ambire, stresses the significance of shifting focus from marketing indicators to actual business objectives and measurements, such as customer lifetime value (CLV) and profit margin.
Corey Morris, President/CEO of Voltage, highlights the necessity of diversifying campaign approaches to optimize marketing costs and complement paid search campaigns with other cost-effective tactics like email marketing and SEO. Navah Hopkins, Evangelist at Optmyzr, underscores the importance of understanding the value of leads and leveraging accurate conversion data to inform bidding strategies effectively.
In essence, the key to navigating CPC inflation lies in adopting a holistic approach that prioritizes campaign quality, business outcomes, and value optimization. By embracing strategic diversification, data validation, and a focus on conversion quality, advertisers can mitigate the impact of rising click costs and drive sustainable advertising performance in the face of evolving market dynamics.