Notes on digital marketing in 2021
Social media marketing has long been one of the most popular ways to market and sell products and services to consumers. However, the hugely popular way of marketing has its consequences, which have recently begun to be realized by all marketers.
Creating ads and marketing on different platforms like Facebook or Instagram has been made quite easy in recent years. Almost anyone can create ads on these platforms and advertise just about anything. Every human being who’s browsing social media will eventually face these ads, which start right away on a Google search. So, what does all this mean in business perspective?
One of the biggest consequences has been the sharp rise in prices. Especially on Facebook, Instagram and Google, rising prices have forced many to rethink its profitability and position in their strategies. In 2021, marketing costs on the platforms above have exploded month by month: In February +6%, in March +68% and in April up to +89% from the last year (Forbes, 2021).
On average, companies worldwide spend up to 200-350 USD a day on digital marketing. The average CPC (cost per click) on Facebook is 0.97 USD and the CPM (cost per thousand views) is 11.54 USD. In Google search, CPM can be as high as 38.40 USD, meaning visibility on Google can quickly become very expensive even in a short period of time. (Google, 2021.) Visibility alone in marketing isn’t enough, because it’s also meant to gain leads for the company. Is attracting leads through marketing campaigns always worth all of this money, especially when the competition is very high?
As I mentioned earlier, due to the large number of marketers there’s a huge amount of competition on social media marketing platforms. Therefore, it’s very easy to drown among millions of ads if the ad isn’t extremely unique. Many factors affect what kind of results are achieved with digital ads, but the fact is that creating unique ads is even more difficult and much more expensive in today’s world. Standing out from others often requires a lot of money and even more creativity with good strategies.
Marketing on social media channels can still be extremely effective, if it’s properly designed and implemented. Even though prices are very high at the moment, it doesn’t mean that marketing is uneffective in a big picture. There’s a lot of good things in it, but due to competition and rising prices, strategies to increase sales are worth of considering carefully. Perhaps because of the high prices, it might be a good time to combine different sales and marketing patterns, and not just use one way to increase sales?
Should the name of the game in the future be multichannel sales combined to marketing? We truly believe it does.
Sources: Forbes, 2021. & Google, 2021.