Why Paid Ads Fail

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Business owners at one point consider going for a paid ad campaign as part of their marketing strategy. Before embarking on a paid ads marketing scheme, it’s possible that you will hesitate and rethink if such a campaign is a good idea or not. It’s good to evaluate your move before you do it and even when you’re already in the middle of it. You need to be really sure of what you decide to do because you won’t want to pour a lot of your money and resources on a campaign that is destined to fail. We are not saying that going for paid ads is a sure way to failure.

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However, you have to be aware that a lot of paid ads campaign fail. Usually, it all comes down to the same issue: the business is not something the audience is familiar with. This is especially common for new companies or those which are introducing new products and ventures. It can also happen to companies who are targeting new markets and audiences. Since the audience doesn’t know you, they cannot recognize you despite the paid ads, they cannot trust you and the cost per click will continue to soar. Hence, your paid ads campaign fails.

 What usually happens is that leaders in a certain business come up with a new idea or a new product, and they want to spread the word about it. So what they do is they find a marketer from an agency, or maybe a contractor. The marketer will suggest buying ads online to get the business some traffic, conversions and basically get the word out about the company or new product. However, a few months later, you receive bad news instead of traffic or conversion. How can you make sure this does not happen to you? How can you ensure that your paid ads campaign will be a successful one?

The Cycle

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A cycle almost always happens in such cases that result in the failure of the paid ads campaign. What marketers usually try to do is drive visits back to a page or a website to get conversions from it. The marketer will try to sell something and get more exposure too, in order to achieve this. Your business will likely buy ads on Facebook, Instagram, Twitter and even LinkedIn. AdWords could be in the picture too, to drive traffic to your webpage and get the conversion that you want. Obviously, this would cost a lot of money. Especially since it’s a new campaign, you’d get a high cost per click rate. This naturally happens when the company is new and when the campaign is new. The platforms won’t have any experience regarding your campaign, so you’d be getting the high cost per click rate. That would go on until you’ve proven to these platforms that you can get high engagement. When you do, they will decrease the cost per click. If you keep getting low engagement, low click-through, and low conversion rates, however, your paid ads campaign is likely to fail.

Why it Happens

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When everything in your stats is low, it means no one engages in your Facebook ads, your Instagram ads, Twitter ads, AdWords ads and so on. Since no one is clicking on your ads, the platforms will get you to pay more to keep your ads on display. Since the cost is so high, you will likely get to show it to just a few people. This relatively narrows down your reach and exposure. This is basically because the audience you are targeting has not heard from you before. Since they don’t know you, they won’t trust you. And when they don’t trust you, they won’t click. When they don’t click on your ads, they don’t like, share and definitely don’t buy either. This is how paid ads campaigns fail.

When your target audience doesn’t do any of the engagement stuff that would lower the cost per click, your campaign will surely be a struggle.

There are a lot of marketers who think this way – that an advertising-first approach is the best approach. While it can be a great approach in some cases, it does not always work out for all campaigns. There are few brand-new companies that do great with advertising even without a previous brand association. This happens to those new companies with products that appeal perfectly to their audience.

How to Avoid Failing Your Paid Ads campaign

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There is a solution for the problem and it’s not something everyone would like. The solution is pretty simple but it can be difficult to implement. What you need to do is introduce your brand or product to your audience first before you start a paid ads campaign. Invest in organic channels as much as possible. What do we mean by this type of investments? These investments refer to content, SEO, press, events, sponsorships and other methods of getting your brand known to people.

Another option is for you to advertise exclusively to an audience with an existing experience with your brand or product. You can do this initially at least. This can be done through Google’s retargeting and remarketing platforms, through Facebook, Instagram, as well as Twitter. You can start targeting people who are already following your accounts. This way, you can have better engagement, better click through and conversion rate and you will naturally decrease the cost per click for your paid ads campaign so that you can move on to a bigger audience. If you will not take time to do this, there is a big possibility that your campaign will fail. Invest in building up your reputation first before going for a paid ads campaign. You can also go for a niche where paid advertising can work for a first-time product.

 Addressing this issue will not ensure that your paid advertising will be a complete success. After all, there are many factors that affect the rate of success for paid ads. However, building up your audience first before launching your campaign will make a huge difference and would significantly minimize your risk of failing.

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