Launching a new business is an exciting time, but without an effective, evolving demand generation strategy, the sales pipeline could dry up quickly. Often, new entrepreneurs launch a variety of ad-hoc marketing campaigns in hopes of generating business; however, these campaigns usually have mixed results. It’s hard to reach your goals if they’re not well defined. Sometimes, an ad campaign doesn’t work initially with a broad market, but as you analyze the results and refine your audience, it becomes very efficient and effective.
As a cash-strapped, side gig entrepreneur, it’s tough to invest without knowing your campaigns will produce any results. It’s a lot like gambling, if you play craps and invest only in backing the thrower and not bet on the 6 or the 8, you’re missing out on consistent payouts of the most frequent numbers, but on the risk-averse side, you’re also avoiding losing money by backing the 6 or 8. As with all of our topics, please review our disclaimer as this content meant to provide general information, but it is not specific to your marketing efforts. The numbers in the examples below are fabricated to provide examples of the calculations used, but those numbers and conversion rates vary based on a wide variety of variables that are not discussed in this blog or on this website. Be sure to do your own due diligence and/or speak with a marketing professional to decide which approach is right for you.
Depending on your offering and who you’re targeting, it may be very possible to generate demand through digital advertising. Some people may call this PPC (pay per click), but in reality, there are several tactics and payment models to bring traffic to your site:
No matter which advertising channel you choose, make sure to set a low daily budget to get started. If your budget is too high, you can end up owing the advertising network a ton of cash within a short time. Start with a low daily budget that wouldn’t hurt you if you didn’t generate any traffic or conversions in the first few weeks. Often, the ad networks have a feature to expand your target audience based on their recommendations – I am not a fan of this. I want to target specific areas where my target audience spends their time. If you decide to choose this approach, you’re giving the advertising network the power to expand the placement of your ads that may include placements on video games or mobile apps. There are ways to prevent such placements, but you’ll need to keep a close eye on your performance and ad placements to determine which ones to keep and which to omit.
Digital advertising is complex, and if you’re not careful, you could easily blow through your entire month’s budget in an hour. That’s why it’s important to work with a professional and/or educate yourself about digital advertising best practices. With advertising, be sure to do your research on the how-to’s before diving in. If you’re looking for some help, click here and we’ll connect you with a side gig consultant who may be able to provide you with low-cost marketing consulting services.
If you’re planning on doing this yourself, keep your required conversion rates in mind. Calculate the number of sales you need and reverse engineer your ad budget. This will vary for each unique situation. Be sure to do your own research for benchmarks on conversion rates before deciding your budget.
I usually determine my budget like this:
* All conversion rates discussed are purely for illustration purposes only and do not represent any factual data.
This example helped me determine how much it will cost me to generate 20 leads based on several fabricated conversion rates. Again, this is just an example, so don’t expect your conversion rates to be the same.
See below for some of the popular digital advertising options:
Always keep your targeted buyer persona in mind when choosing your advertising channels. It doesn’t make sense to send digital ads to someone who doesn’t have access to the internet.
If you want to become a pro, check out Udemy’s Digital Advertising courses to learn more.