Introduction to Digital Advertising Series
Welcome to this video series, how to get more customers, an introduction to digital advertising. My name’s Johannes, and I come from a little village in Germany, but I moved to Australia in 2004. I spent some time in Darwin, Townsville, Mount Isa and got into digital advertising in 2009. In 2012, I moved to the Sunshine Coast and started Cloud Clicks. And now there’s six of us. We’re a Google Premier Partner, Google Analytics certified, and Google tag manager certified. So basically in this session, we’ll talk about the different advertising platforms. And then the next sessions we’ll dive into the digital platforms that we highly recommend, such as Google AdWords, Facebook and YouTube, Google Display Network. We’ll look at Google shopping, Facebook shopping and remarketing. Things have changed in the last few years. And the question now is, where do businesses spend their money?
Money is spent online. So the digital ads spend in Australia in 2015 was $6 billion. The TV ad spend was $3.9 billion. Press newspaper, 2.6 billion in 2015. Businesses spent 700 million in magazine ads in to in 2015, and 775 million in radio ad spend in Metro regions. Cinema ad spend was around 132 million. And looking at those numbers, just gives us a snapshot of where things are at, but the question is where are things going? And so TV ad spend is expected to grow by one to two percent per year. That is until the streaming takes over. Obviously everyone knows of Netflix, then Amazon prime and like all those streaming platforms. More and more people will be watching most of their shows online and are not going to see any TV ads.
Newspapers are declining by 7% per year. Magazines are declining by 9% per year. Radio is still growing at 3% per year, but again, that’s only until streaming takes over. So we’ve got podcasts on the rise. We’ve got Spotify, Apple Music, Amazon music. So it’s only a matter of time until radio’s also going to be on the decline. Outdoor advertising still going strong, growing at 8% per year and then Google is growing at 21% per quarter and Facebook’s growing at 57% per quarter. So while everyone is in the one digits per year, they’re growing two digits per quarter and are smashing it. So already most of the digital advertising gets the biggest chunk, and it’s growing a lot quicker than any of the other platforms and mediums. It’s just what Google and Facebook revenue growth looks like at the moment, so they just keep growing and keep generating more income, mostly off of their advertising.
The question is now how much does it cost to run an ad? So if we’re looking at a TV ad, here on the Sunny Coast or Gold Coast area, if you run a local ad 15 seconds, it will cost you roughly $45 for a morning spot and roughly $380 for a primetime spot. And you got to commit for two to 5,000 per month plus the video or the ad and production cost. Newspaper ads, you’re looking at $1000 for a half page ad. Magazines, $1000 for a half page ad. And again, that’s sort of where it starts. You can easily spend 10 20 grand on magazine ads, newspaper ads, once you go national. So, basically, this just gives you a starting point. Local radio station you’re looking at 35 to a hundred bucks per spot.
So if you want to get five spots a day, seven days a week, that roughly costs five grand. And if you do outdoor advertising, depending on location and size, anywhere from a thousand to 65 grand per month. Plus the setup for the billboard.
Bus ads. If you get a back panel on a bus or one bus, that starts from $2000 for one back panel for eight weeks. So if you wanted to advertise on two buses, you’re looking at double that.
Google or Facebook, you can run ads from five bucks a day. Obviously I’d recommend you start with a bigger budget, maybe 900, 1200 a month. But if you want to, if you have a really tight budget, you can just have a campaign running for 150 a month, and you can see results from that.
So that’s a huge benefit of the digital platforms right there. And then obviously we’ve got problems with traditional ads. So the first thing is you don’t know if it’s working. If you’re running a TV ad or you got a newspaper ad, you don’t know how many calls you’re generating. Or most businesses don’t know how many calls or inquiries they’re generating. It’s quite difficult to get started. So you need a graphic designer, you need everything laid out, you need a videographer, there are all kinds of startup challenges. It’s quite pricey. Like you need to spend quite a bit of money on that. And it’s extremely tricky to track your ROI. I’ll share trick in a minute though.
And then the next thing is people spend more and more time online. So when the past everyone was reading the newspaper, people get the news online. And it’s, once you’ve got an ad up and running, let’s say you got a billboard up at a bus ad, a TV ad and you decide, Oh, I want to focus on a different offer or change something you’ll, you’ll basically start over again. So that’s another benefit of digital ads: it’s quite easy to change and to update them.
If you do run offline ads. And I don’t think they’re necessarily a bad idea. They can work quite well. You should definitely make sure that you track your ROI. In this case, I got a photo of my car here. And I got a domain cloudclicks.com that’s only on my car at this point. So my main domain is.com.au. If you and you type in and you can see my car, and you’d type in cloudclicks.com it takes you to my .com.au Domain. But all the traffic is tagged. And I know that at the moment I get about ten visitors a month just from my car, but from people that have seen my car, same with that phone number. And that 07 number is only on my car, costs me, I think two bucks a month plus I don’t know, 20 cents a minute or whatever an incoming call costs me.
And I get one or two calls a month from that number at the moment. So not a huge amount of traffic, but people do see my car. And I do notice how many people go to my website. So can assume a lot more people will see it, think about it. But the actual numbers, it’s rather disappointing. I’ve ran a number of magazine ads a few years back and again, we tag the phone number, and the domain and we’ve got for I think it was three and a half thousand spend. We’ve got five phone calls and basically just people trying to sell us stuff. So we tested it. It didn’t work and moved on and tested a few other things. So if you did do any radio ads, TV ads, newspaper ads, make sure you know what your ROI is.
Alright, benefits of digital ads. It’s very easy to measure your return on investment and performance. Low cost of entry, as I said before, from five bucks a day, you can start running some ads. You can do it yourself. Even though it is getting trickier, but if you are on a tight budget and you’ve got some time, and you are happy to learn. Within 24 hours you can get some ads up and running. And it’s possible to compete with the big guys. So it’s not just who has the biggest budget, but who has the best ideas. You could target demographically. There are some awesome options on Facebook to target people. On Google, you can target people that are searching for your product, or they’re actively looking for what you have to offer, and you just need to get in front of them. And remarketing, so anyone that’s been to your website or engaged with some of your content, you can just make sure that they keep coming back to your website.
So, problem, small business owners, we’re on the same boat. We need more customers, right? So the question is, where do we find them? And we’ve looked at a few options. TV, newspaper, magazines, billboards, digital, and obviously this is an introduction to digital advertising. So we’ll focus on just the digital platforms. And I’m a big believer in 80/20, so we just focus most of our time where we get the biggest return. And at this point, I do believe that is Google AdWords and Facebook. And we’ll unpack all of that in later sessions. But yeah, I think that if you’re getting started, AdWords or Facebook is where you, want to dip your toes in. We did some work for RV Homebase awhile ago, and they gave us a testimonial.
So basically before we started working with them, they were doing a hundred per cent offline advertising. They did have a website, but there were no ads, no Google, no Facebook. So we’ve set all of that up for them and come up with an Adwords strategy, Facebook and a remarketing strategy, put that in place. And within four weeks we were getting an 83% cheaper leads than they were getting previously from the other marketing channels. So to put that in perspective This is not their numbers, but just to exemplify what that means. If you’ve been spending 100 bucks and you can reduce it by 83% you reduce it to $17 per lead, or if you’ve been spending $2,000 a month at a hundred bucks a lead, you would get 20 leads, and for the same $2,000, you would now get 117 leads.
That is a 484% improvement. And obviously, that’s a huge, huge change and makes a huge difference. I don’t know if you’re a small business and you’re getting maybe five, 10, 20 leads a month, and suddenly you get a hundred, 117 leads for the same effort I think they would change every one of our businesses. In the next videos, we’ll dive in a bit deeper into, into the technical side of things, a foundation tracking, what do we need to do before we start spending money? And we’ll look into Google ad words. Where are they at? What should you keep an eye on? In the third video, we’ll talk about Facebook ads. The fourth video we’ll do remarketing. How do we get those people that have been on the sides back to get them to convert?
And then in the fifth video, we’ll talk about e-commerce and shopping ads. So Google shopping Facebook shopping ads and maybe some of the other price comparison engines that are out there. This was just a quick introduction, and then we’ve got those five videos that go a bit deeper. You can click the link to watch the other videos. I hope this was helpful and hope that you’ll keep going through this.