When historic growth rates aren’t sustainable or indicative of our future growth, how do businesses ensure that the net profit from new customers will ultimately exceed the cost of acquiring them?
Several factors contribute to a more difficult marketing landscape:
1. It’s hard to stand out from the crowd in the shark-infested waters of paid traffic platforms. In an auction-based environment, it’s a level playing field.
When it comes to media optimisation, now more than ever the algorithm is doing the heavy-lifting – rendering media buying expertise increasingly redundant.
2. Actions by third parties to block or impose restrictions on the delivery of certain advertisements can adversely impact business. Examples include ATT framework from Apple’s iOS14 update, ITP-enabled browsers like Safari, ad blockers, and Google’s plans to change the ways that third parties can use web browsers to obtain user information.
The so-called ‘cookiepocalypse’ makes it harder to target, optimise and report on marketing efforts.
3. Low barriers to entry are increasing competition. Whether it’s in the form of easy-access financing (e.g. Clearbanc), low-code platforms (e.g. Shopify), or ubiqitous marketing channels (e.g. Facebook Ads).
Increased competition increases cost-per-click rates and acquisition costs.