30 second summary:
- Very few SMEs use multiple channels for their online
- Facebook is the most cost effective channel for CPM and CPC
- It is important to remember that every business is unique in deciding budget allocation
For any business Software as a service (SaaS), data analytics and science are key to making sure they keep moving forward to reveal this information it can really make a difference. With this in mind, the Cambridge MBA team sought to leverage Adzooma's extensive data to identify new ways for SMEs to maximize their ad spend through cross-channel marketing.
For the University of Cambridge team it was an exciting opportunity to produce truly unique information, given that even big players such ass that Google and Microsoft only have data relating to their individual channels. The project promised to provide a much broader view and provide new insights through access to anonymized data from thousands of accounts on the big three platforms through Adzooma.
A cross-channel approach
The results immediately identified that very few SME customers use multiple channels (Facebook, Google and Microsoft).
While not part of the main project, it was a really interesting analysis and it is something that we stressed the importance of a lot. Most people stick with Google, for example, because that's where they think it should be, but it's not always the best case for everyone's business, and being seen at multiple touchpoints - or at least trying multiple channels - can be crucial for digital marketing success.
Our analysis revealed that Facebook was the most conducive channel for SMBs based on cost (CPM, CPC) as well as feedback (impressions, clicks), however, it was Microsoft that came out on top for reach a more professional and comfortable audience.
The search has highlighted the importance of predetermining your target audience . Therefore, when it comes to choosing the channel - or channels - for your business, it's really worth thinking about what you're trying to achieve with your ad spend and who you're really trying to reach. .
What are you really trying to achieve?
Right at the time of the shift it is important to think about your end goal and ask yourself who are the customers you are looking to target and what is the most effective way to reach them. .
Existing research has shown us that for SMEs, the acquisition of new customers was the most sought-after objective of the customer journey, followed by "generating notoriety", "generating prospects "And" retai traditional sales funnel with the customer lifecycle model would be the best way to an SME to manage its global marketing objectives.
Overlapping resolution methodology then allowed the team to determine the impact of the cost on different marketing channels. In this way, SMEs would be able to efficiently determine which platform is better to use when similarities occur.
We have found through research that 'it was the choice of the channel itself that had the most impact on CPM and CPC. After determining a connection between the channel and the cost KPI , searches more were conducted to find out the average CPM and CPC on Google, Facebook and Microsoft Ads.
While Facebook was the most profitable channel inAverage for SMEs as a whole, the recommendations were that companies should always look at the click-through rates of other channels to determine if other factors such as industry or geography could make a significant difference.
If you choose between Google and Microsoft, the results suggest using Google because of its high reach and low cost, however, Microsoft could also be of help, especially since itoffers high-level targeting and demographics that may be suitable for specific types of businesses.
What does your ad say?
Another factor that many businesses might not consider when choosing a platform is the sentiment of their message .
When analyzing the data, this was another area where the research team saw differentiation based on the channel where the ad is appeared.
Microsoft has proven to be the most popular platform for positive sentiment with a CTR of 4.2%, compared to 3.6% for neutral sentiment and 3.3 % for negative sentiment.
Interestingly, the reverse was true for Google ads where negative sentiment was found to be the most popular with users, with a CTR rate 6.5% versus 5.7% for neutral and negative messages.
Again, this underlines how important it is to take this time to tweak your ads for testing purposes and find out what works best for your target customers so that you can capitalize on your expenses.
Every business is unique
It's no secret. The size-for-all approach doesn't work necessarily. All businesses are different. Therefore, their ad spend and usage will of course be different.
Some people, like all of us, we want to track stats and what's up has been shown to have worked historically for businesses, and while it can be taken into account, it shouldn't remain that it will work for all businesses.it's always important to remember to take the time to think about your spending and who you're trying to reach.
In addition, it should be remembered that although Google , Facebook, and Microsoft Ads are the platforms of en Most popular online, there are alternative (and cheaper) places to list your ads, including Reddit, Amazon, and industry specific sites like Capterra. Although they have fewer users, they are still effective as it is often easier to reach your exact target audience and could work as an addition to your main latform.
Looking to the future
We hope that grThanks to this research, we pushed SMEs to think carefully about their target audience and specific goals before spending allocation ads. What we have shown here is that the platforms explored in this study work effectively in their own right depending on the end goal and we hope this information will help SMEs to obtain better overall results.
These learnings help determine how cross-channel partnerships can be best leveraged for SMB clients. As Facebook appears to be the most used channel by 70% of SMBs and data analysis suggests it is optimal in terms of cost and performance, the data will be used to scale features and the opportunities of Facebook. Many of the lessons we learned from this study will also go directly into the core technology of the product.Adzooma.
Rob Wass is co-founder and CEO of Adzooma.
Akanshaa Khare is currently pursuing an MBA at Cambridge University and has five years of product management experience and three years of consulting experience, helping consulting firms such as BCG and ZS Associates.
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