Are you having trouble convincing your clients to boost their ad budgets? When competitors increase advertising, your clients can lose 15% of their revenue, if they do nothing. That statistic comes from an Analytic Partners report.
The Power of Advertising
Your clients may feel secure in knowing that as long as they advertise, prospects will seek them out and buy their products and services. Advertising definitely helps revenue growth. Estimates abound about the ROI on marketing investments. Done right, your clients can expect an ROI of up to $6.50 for every dollar they sink into an email marketing campaign or about a $2.75 return on their SEO investments.
But your clients must promote themselves in the right channel, use the right message and tout the best value proposition. Competitors are always ready to steal market share. One way for you to help your clients understand their position in the digital advertising ecosystem is to run a Digital Audit on their activities. When you run an analysis comparing their digital position to two competitors, they’ll see where they are falling short. You can access the tool at AdMall from SalesFuel.
The Halo Effect
Have you heard about the halo effect? This is another key concept to explain to your clients. The halo means, “the positive impact that advertising for a specific product/model/service has onto other products/models/services within the portfolio or megabrand franchise." Analytic Partners analysts say that if a marketer doesn’t have a halo, they’ll lose 50% of their advertising impact. Harsh, but true. And you don't want clients to lose 15% of their revenue, either.
What have your clients done to improve their halo? In the local marketplace, consumers take notice when a company sponsors a charity fundraiser. Consumers also want to know what an organization is doing to minimize their environmental footprint. On a regular basis, your clients should be touting their support of nonprofits. They may even want to run promotions with a promise to donate a specific percentage of revenue to a needy organization. When they take these steps, their halo grows. And when it’s time to roll out their new product or service, their advertising investment will deliver extra value.
Creativity and Online Video
2021 will be the year that video advertising explodes and if your clients doesn't want to lose traction with customers and prospects, they should be using the format. With an expected consumer viewing rate of 100 minutes a day for online video this year, advertisers will flock to the format. Digital video ended 2020 with total revenue of $26.2 billion, a 20.6% increase over the previous year, despite the pandemic.
This increasingly crowded marketplace means that your clients will have to work harder to stand out from their competitors. Analytic Partners analysts report "two-thirds of the opportunities to improve video advertising performance is driven by strong creative quality.”
What does strong creative quality mean? In a review of Facebook video advertising, Orlando Wood noted that ad campaigns aim for reach, duration and frequency metrics. Beyond that, ‘left-brain’ features include “quick cuts, the abstraction of products and body parts, voiceovers, monologues, rhythmic soundtracks, and overlaid text.” The typical Facebook ad contains 5.3 elements that might appeal to the viewer’s left-brain. But they contain only 1.3 elements that will kick the right-brain into action. The right-brain features result in longer viewing sessions and better recall and this is the kind of creativity your clients' ads need. Melodic music (earworm, anyone), a scene that tells a story, clear dialog and ‘characters with agency’ fall into the right-brain feature set.
Don’t Let Your Clients Lose 15% of Their Revenue
Your clients must maintain a voice in the marketplace. In addition to promotional messaging and announcing new products and services, they should be calling attention to what they’re doing to serve the community. Show them the best creative elements to include in their video messaging and they’ll reward you with more business.
Don't let your clients lose 15% of their revenue. Help them develop a winning strategy.