For all brands, staying on top of the digital ad spend game is an uphill battle requiring you to master the terrain, even as it twists and turns faster than you can flex your marketing budget. Marketers have access to the same data on the two big platforms: Facebook and Google. The space is becoming commoditized and costs are going up.
The learning curve to buy ads effectively and efficiently is steep. For example, buying an ad on Facebook is now incredibly easy, but ensuring the effectiveness of the buy — to optimize Return on Ad Spend (ROAS) — requires expertise, time, and amazing creative.
The major social platforms have been promoting their ad products and encouraging marketers to pay-to-play vs allowing for organic reach. This levels the playing field for comparable budgets in terms of reach and targeting but makes the choice of how and where to spend critical. Further, consumers are more distracted than ever, so brands need to capture attention by using great creative without breaking the bank. It’s the strategy piece of the puzzle that’s challenging as spend continues to grow. Ninety percent of marketers’ incremental digital spend goes to Facebook and Google, as you can see below.
Viewing ad spend over time shows which platforms dominate — Google and Facebook continue to form a growing “digital duopoly”.
What lies ahead for customer acquisition? As a digital revenue expert, I see these five customer acquisition trends gaining momentum:
1. Facebook’s efficiency will result in steeper costs.
2. Data co-ops will become more common.
3. Discretionary income will become even more vital and transparent.
4. Everyday household-name brands may matter less and less.
See how marquee, midsize, and infrequent-use brands compare.
5. Brands that sell emotion will continue to matter.
Notice how product categories with high emotional potential rank highest in ROAS.
Customer acquisition cost can be a startup killer, yet even for the most established brands, optimizing customer acquisition cost versus lifetime value (ability to monetize acquired customers) is a complex and dynamic process made easier with an agile roadmap expertly built for constant change.