Jan 6 2020
Case study: Cost-effective daily advertising for startups
Startup. A fresh idea that is turning into a business and must remain financially stable. Only 50% survive the first 5 years (Smallbizgenius). The average startup costs are around $ 30,000 according to the Minority Business Development Agency (MBDA). There is great rationalisation, a small team and little active promotion. Or none at all. However, prudent paving of the business path requires a precise communication strategy that will enable the startup company to position itself in the market. Since first impression leaves a lasting mark, it is reasonable to put a portion of early investments into promotion of the company.
Google Search and Display provide accurate targeted advertising based on keywords, stakeholders, habits, demographics, etc. and a large audience. Every second, Google records as many as 75,000 searches. The chances of reaching the right target audience are therefore high, but so are the costs of such advertising. According to Valve+meter, the average cost per click (CPC) of pay-per-click advertising (PPC) is $ 2.69, whereas the average cost per mille (CPM) of impression-based advertising amounted to $ 5.35 in the third quarter of 2019.
This means that a company would pay around $ 53.50 for 10,000 ad impressions and $ 269 for additional 100 ad clicks. The average click through rate (CTR) for display ads is 0.6% (Leighton broadcasting). With 10,000 impressions, that means about 60 clicks. SaleCycle reports that an average of 3.3% leads appear from the beginning to the end of the purchase path, namely from the time the interest was demonstrated (click) to the actual purchase. At 160 clicks, that means the company wins around 5 new customers a month from impression-based advertising. Quickly it becomes clear that about $ 300 for 5 conversions per month might be a considerably high investment for a startup company.
Some financially less challenging advertising options are available to startups as well:
1. Search Engine Optimization (SEO) – Optimise your web site with selected keywords and quality content, which will make it rank higher among organic search results and reach more views in the search engine (eg. Google).
2. Online content marketing – Provide interesting and informative web site content. Write a blog, communicate with social media followers, provide quality but unobtrusive email marketing, etc. This will upgrade your search engine optimisation (SEO) and deliver higher website traffic, greater visibility, and a better professional reputation.
3. Classic content marketing – Find printed matters that share your target audience and could find your expert (promotional) content attractive to their readers, which means that ad space could be cheaper or even free of charge.
4. Personal recommendations – Reward those who bring in a new customer and encourage them to help spread the good word.
5. AdSigner – Make sure your digital identity makes a convincing and lasting first impression with every email you send.
Equip your emails with a professional email signature. Add a dynamic, attractive banner that, unlike traditional email marketing, will never end up in the spam folder and has an average monthly reach of 4,100 recipients per one email signature. Learn about a new marketing channel that lets you advertise on a daily basis:
- At no extra cost per impressions or clicks
- Without content restrictions – Advertise a business, product, service, current campaign, upcoming event, your new qualification, award or other achievement
- Without having to invest any extra time – Set up an ad campaign and specify the times when you want your ad message to be replaced automatically
- Without any additional knowledge needed – user-friendly and easy-to-use software replaces your IT, marketing and sales assistant
- No fine print, which would include extra costs added to the monthly subscription fee for the Professional AdSigner package, which gives you unlimited benefits of the AdSigner software.
The goal of every entrepreneur is to minimize the cost per order. With AdSigner, this is possible at the very beginning of your business journey, as it enables you to reach your target audience effectively through cost-effective daily advertising. Attractive, targeted and different.
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