Hi everybody this is Vlad here from Simplee Digital and I want to share with you that right now, for businesses that are looking to advertise on Facebook and Google, it is important to know that we are seeing the lowest prices to advertise on those platforms that we've seen in this industry over the past ten years at least. Let me explain to you why that actually is.
How is Advertising Price Determined?
Google and Facebook advertising prices are controlled by two basic principles.
The owners of the platforms themselves have the ability to increase or decrease prices.
The auction, and the auction works similar to any other auction, it's a matter of supply and demand.
The more advertisers that are willing to spend money, invest budgets into these advertising platforms the higher the prices, and that's why if you look at some of the more competitive industries like financial sector for example, insurance, real estate, investing and stocks, those are extremely competitive industries in the online marketing world, so over the past 10 years the prices for those industries have gone up tremendously.
Impact of COVID-19 on Ad Market
Then of course we got hit by COVID-19 and what has happened over the course of several weeks is suddenly, advertisers, big advertisers with big budgets, are pulling out their investments from these platforms: from Google ads, from Facebook, from Bing, LinkedIn you name it. Because everybody is struggling. Almost every industry is trying to cut costs and marketing expenses a lot of times is one of the first things that goes. So what impact has that had on the auctions? Well, just like in the stock market when everybody is starting to sell off and pull their money out of the stock market, the stock prices plunge. The same thing is happening right now on major advertising platforms. The prices per click, the prices to bid on any particular keyword or search term these days or to get impressions for your product service is the lowest that we've seen over the past 10 years.
What is the Opportunity?
Now what does that mean...that means that for specific businesses this presents a tremendous opportunity. Not every business will be able to take advantage of this because the reality of it is that some businesses are in real hot water right now. They may be overextended on debt, they have tremendous overhead and expenses that are fixed and they are really in a survival mode. They've cut down everything they possibly can and considering additional investments right now is just not realistic.
But there is also a segment of businesses, a lot of times in those same industries, that actually have cash reserves that have been profitable for a certain amount of time that have built out a cushion for themselves and are now not idly waiting things out but are actually looking for opportunities. If they are in a healthy enough position to take advantage of an opportunity like this, right now is the time to do it.
Why Advertise During COVID-19?
Low prices aside, there are two important reasons why it's so important to continue advertising during this time.
1) People are still spending money.
There may not be as many people and there may be spending money in different ways than before but a large population is continuing to live their lives and they're spending on a regular basis.
2) Gain market share at discount
The second reason is that even people that have significantly curbed their spending, it's only a matter of time until the economy starts to slowly rebuild and recover and at that point people's spending will increase as well. Right now is an opportunity for companies to establish themselves as top-of-mind brands for these future spenders at a major discount instead of waiting and having to compete with hundreds of other brands that are all re-entering the advertising marketplace at the same time when the economy is actually picking back up.
Myself and my entire team have been monitoring the situation very closely and there's a tremendous opportunities that are presented across many different sectors and verticals and we cover a lot of different verticals with our work so if you are considering or would like to consider how to take advantage of this tremendous opportunity right now and invest into advertising at a great discount, that hasn't been available in the past ten years and may not be available in the next ten years, then I encourage you to reach out to me directly and I will help you do that in your particular industry and for your particular business. Thank you for your time and for watching this and I hope you have a great day.
To grow your business using efficient and to the point digital marketing tactics, send me an email at vlad@simplee.digital or leave us a note here: http://simplee.digital/get-in-touch
Author: Vlad Sherbatov, President & Co-Founder at Simplee Digital Marketing.