30 second summary:
- Few SMEs use multiple channels for online advertising
- According to the cost of CPM and CPC, Facebook is the most effective channel
- It’s important to remember that every business is unique when deciding on budget allocation
For any business in the software-as-a-service (SaaS) space, data analysis and science are essential to ensure that they move on to uncover the insights that can really make a difference. With this in mind, the Cambridge MBA team hopes to use Adzooma’s large amount of data to determine new ways for small and medium-sized enterprises to maximize advertising expenditures through cross-channel marketing.
For the Cambridge University team, this is an exciting opportunity to generate some truly unique insights, because even large companies like Google and Microsoft only have data related to their respective channels. The project is expected to access anonymous data from thousands of accounts on three major platforms through Adzooma, thereby providing a broader perspective and providing some new insights.
The survey results immediately confirmed that very few SMB customers use multiple channels (Facebook, Google, and Microsoft).
Although this is not part of the main project, it is a very interesting analysis, and we have emphasized the importance of many things. For example, most people just stick to Google because this is what they think should be done, but this is not always the best case for everyone’s business and is seen at multiple touchpoints – or at least try multiple channels – It is essential for digital marketing to succeed.
Our analysis found that based on cost (CPM, CPC) and return (impressions, clicks), Facebook is the most favorable channel for small and medium-sized enterprises, but Microsoft attracts more professionals and wealthy people, so it ranks first.
Research emphasizes the importance of pre-determining your specific situation Target audience. Therefore, when choosing one or more channels for your business, it’s really worth considering what you want to achieve with your advertising spend and who you really want to attract.
What is your real goal?
Right at the offset, it is important to consider your ultimate goal and ask yourself who is the target customer you are looking for, and the most effective way to attract them.
Existing research tells us that for small and medium-sized enterprises, acquiring new customers is the most sought after goal in the customer journey, followed by “generating awareness”, “generating potential customers” and “retaining customers.”
With this in mind, the Cambridge team found Traditional sales channels versus Customer life cycle model This will be the best way for small and medium enterprises to manage their overall marketing goals.
The overlapping solution approach then allows the team to determine the impact of costs on different marketing channels. In this way, small and medium-sized enterprises will be able to effectively determine which platform is best to use when similarities occur.
Through research, we found that the most important influence on CPM and CPC is the choice of the channel itself.Determine the link between channel and cost Key Performance Indicators, Conducted further research to find the average CPM and CPC of Google, Facebook and Microsoft Ads.
Although Facebook is the most cost-effective channel for small and medium-sized companies overall, it is recommended that companies still consider the click-through rate of other channels to determine whether other factors (such as industry or geographic location) can have a significant impact.
If you choose between Google and Microsoft, it turns out that Google is recommended because of its wide coverage and low price, but Microsoft may also be useful, especially because it provides advanced targeting and demographics suitable for specific business types .
What is your advertisement saying?
Another factor that many companies may not consider when choosing a platform is mood Their news.
When analyzing the data, this is another area where the research team differs according to the channels through which the ads appear.
Microsoft proved to be the most popular platform, with a click-through rate of 4.2%, compared with a neutral click rate of 3.6% and a negative click rate of 3.3%.
Interestingly, for Google ads, the situation is just the opposite. Among users, negative emotions are the most popular among users, with a CTR rate of 6.5%, while the click-through rate for neutral and negative messaging is 5.7%.
Again, take the time to adjust your ads to test and understand the most important point that best suits your target customers so that you can take advantage of your spend.
Every business is unique
It’s no secret that a size that fits all methods does not necessarily work. All businesses are different, so of course their advertising expenditures and usage rates will be different.
Like all of us, some people want to understand statistics and data that have historically proven effective for companies. Although this can be taken into account, this is not to make it applicable to all companies. Therefore, it is always important to remember to take the time to consider where you are spending and who you are trying to contact.
Also, it’s worth remembering that despite Google, Facebook, And Microsoft Ads are the most popular online advertising platforms, and there are other (and cheaper) places where you can list your ads, including industry-specific sites such as Reddit, Amazon, and Capterra. Although there are fewer users, these methods are still effective because it is usually easier to reach your exact target audience and can be used as a supplement to the main platform.
Look to the future
We hope that through this research, small and medium-sized companies can carefully consider their target audiences and specific goals before allocating advertising expenditures. What we show here is that according to the ultimate goal, the advertising platform explored in this study can effectively play its role, and we hope that these insights will enable small and medium-sized enterprises to achieve greater overall results.
These lessons helped determine how to best utilize SMB customers’ cross-channel partnerships. Since Facebook is the most widely used channel among 70% of small and medium enterprises, and data analysis shows that it is the best in terms of cost and return, these data will be used to expand Facebook’s functions and opportunities. Many of the learning results we obtained from this research will also be directly used in the core technology of Adzooma products.
Rob Wass is the co-founder and CEO of Adzooma.
Akanshaa Khare is currently studying for an MBA at Cambridge University, and has 5 years of product management experience and 3 years of consulting experience, providing assistance to consulting companies such as BCG and ZS Associates.