Digital advertising has taken the market by storm in recent times. A concept that wasn’t taken quite seriously initially has now grown to become one of the most sought after ways to reach prospects and boost sales. Well, this is how markets and marketing gimmicks change over time. However, this is not the only thing that has changed about digital marketing and advertising. Over the years, this new age concept has grown more and more expensive and the trend is likely to continue in the times to come. What is it that makes digital advertising so expensive and why are business owners spending so much on it even though it is growing costlier? Read on to find out!
A Clear Case of High Demand and Low Supply
We have all studied how inflation hits the market when the demand is high and the supply is low. This is exactly what has happened in the case of digital advertising. When digital marketing was still a novel concept, it wasn’t really considered as an effective means to promote businesses. Back then digital marketing firms were new to the market and provided services at a low price to attract clients and also because running ad campaigns on digital platforms wasn’t as costly an affair. However, times have changed now. Businesses across industries have realised the importance of digital marketing.
In an era, where almost everything has gone online, it has become difficult for businesses to survive without advertising their products on digital platforms. And by digital platforms we do not mean advertising only on your website and social media handles. Digital advertising involves advertising your products on popular platforms such as Meta, LinkedIn, Amazon, Google and the likes. As more and more businesses understand the need for such high end advertising, the demand for digital ad spaces on such platforms is rising. Businesses are competing with one another to grab the right spot for advertising to capture the attention of their potential clients. The rising demand has thus led to a drastic increase in the digital ad prices. As a result, popular digital platforms such as the ones mentioned above are cashing in big time while businesses are shelling out millions to stay on the top of the game.
Small businesses are however bearing the brunt as the rising advertisement prices have left them with little scope to advertise their products effectively. However, some of the best digital marketing agencies in Faridabad as well as in other parts of the country are bent upon helping small businesses advertise their products and services effectively without digging a hole in their pocket.
Apple’s Policy Change Has a Role to Play
Apple has recently made certain changes to iOS. Changes have been implemented with regard to its ad targeting and privacy policies. These changes have come as a nightmare for businesses and digital marketing companies in Faridabad as well as elsewhere as they have led to a surge in the digital advertising prices. What are these changes that have led to this drastic increase? Well, Apple is no longer willing to share the behavioural patterns of its users with other apps installed on iPhones and iPads. Its new policy or rather strategy involves keeping all the user related data to itself. It shall only use this data to run ads on its exclusive App Store. What does it mean for advertisers? This move by Apple has made it difficult for advertisers to target niche audiences on platforms such as Meta, TikTok and Amazon to name a few. They now require using first party information for digital advertisements and this process is costing them a great deal. No wonder, they have increased the prices of digital ads substantially. Meta is said to have been worst impacted by this move and hence we can see a drastic surge in its ad pricing. Other platforms are not far behind. They are experiencing a similar situation and have thus started charging more for advertisements.
It is being anticipated that Apple is creating a powerful advertisement infrastructure of its own. This may result in a further increase in ad pricing.
Connected TV has Added Fuel
As if all this wasn’t enough, the ever increasing investment in connected TV is resulting in more money into platforms such as YouTube. More and more advertisers are using YouTube as a medium to create visibility and attract more buyers owing to its high popularity rate. This has resulted in an increase in the number of advertisements played on this platform as well as their rates.
Quick Tips to Get More by Spending Less
We are sure you are eagerly looking for ways to run effective digital marketing campaigns without disturbing your budget. The tips shared below should help in this direction:
Look for the Right Digital Marketing Agency
Digital advertising is becoming costlier by the day and most digital marketing services in Faridabad as well as elsewhere have increased their prices drastically as it has impacted their budget. However, the services most of them offer are not at par with the amount being charged. Thus, it is important to spend some time looking for the right agency.
Measure the Performance
It is suggested to measure the performance of your ad campaigns regularly to assess how well they are performing. This will give you clarity on whether the amount being spent is worth it or not. If the returns aren’t satisfactory then you need to change the strategy.
Leverage Other Digital Platforms
In addition to advertising on popular applications, it is important to leverage other digital platforms to reach your target audience. Email marketing is one such effective tool. Updating all your social media handles regularly also helps generate interest among prospects. It often results in fetching good leads leading to increase in sales.
Thus, we see how the increasing number of digital ads by brands is resulting in rising prices of these advertisements. The change in Apple’s policy and investment in connected TV has also contributed to the increase in their price. However, with some smart moves such as those mentioned above you shall be able to promote your product within budget.