The digital marketing industry is expected to grow with an average growth rate of 9% between 2020 and 2026. Companies are planning to increase their marking budget by 50% in 2023.
Why is digital marketing gaining ground? Why should your business invest more in digital marketing in 2023? This blog will look at four reasons why your company should invest in paid marketing in 2023.
What is Paid Marketing?
Let’s first define what paid marketing is. Paid marketing, sometimes called paid advertising, refers to a company’s online methods to attract more customers by paying for ad space on search, other websites, or social media.
There are several types of paid ads, but some of the commons ones are:
- Paid search
- Social media advertising
- Banner ads
- Native ads
1. Paid Advertising Reaches Your Customers Where They Are
According to a study, 81 percent of shoppers do online research before purchasing, and 60 percent start with a search engine. The easiest path to gain a conversion is to advertise where they are.
Newspapers and traditional paid marketing aren’t good in today’s consumer world. Digital marketing is how to get the word out about your business. Pay-per-click (PPC) advertisements, like those placed in Google’s search network, let you present your company as the answer to a consumer’s search.
While many companies advertise on Google to reach the widest audience possible, you can also opt to advertise through other networks. If you know that your key demographic uses Facebook, you can use Facebook Ads to promote your product where your prospective customers spend most of their time.
2. Paid Marketing Increases Your Company’s Credibility
You build trust in your brand by helping your customers solve their problems. Customers are likely to turn to you when they are ready to purchase. While many companies use this strategy on their owned resources, such as their blog, buying ad space can increase your reach with new customers by paying for space on blogs and publications to create informational content.
SEO and PPC go hand in hand. Creating optimized PPC ads puts your brand name in front of more potential customers, meaning more exposure. And since most people feel reassured buying from a familiar brand, you get to benefit from a word-of-mouth referral which accounts for 50% of all purchasing decisions.
3. You Can Target Your Ads Extremely Well
Sites like Facebook and Google can put your ads in front of the right prospects. Google won’t show an ad for new car tires to someone looking for spas in the area, and Facebook knows better than to show an advertisement for life insurance.
Not only do these companies have the data to place your ads properly, they also have an incentive to. You want people to click your ad, and so do these networks. Since you pay-per-click, they want to make sure people are clicking.
Additionally, they want to ensure the people who click the ads are most likely to make a purchase. You’ll only keep advertising through them if you see a return on investment. If you don’t have extensive customer data, paid advertising can use your existing criteria (i.e., age, location) to target prospective buyers.
4. You Have Access To Powerful Monitoring and Analytics Tools
Google’s AdWords and Facebook’s Ads Manager allow you to measure results and see how individual campaigns are doing. You can view demographic information on the types of people viewing your ads and use that data to target prospects more accurately in the future.
You can view the devices people use most frequently when interacting with your ad, see what time of the week or month your ads get the most response, and even customize your account to display only the metrics you’re interested in.
Monitoring and generating reports can take up a lot of time. Lucky for you, paid marketing tools to give you access to some of the most powerful resources that help you to make informed business decisions.
Bottom Line
Now you know why investing in paid marketing in 2023 will be worth it. Digital marketing is here to stay. With its advantages compared to traditional marketing, it is clear why businesses need to invest in digital marketing. If you’re not convinced, wait a few years, you’ll see that digital marketing will only become more critical.
Thanks for reading! In next week’s blog, we’ll talk about the top paid marketing strategies in 2023. Follow me on LinkedIn, Facebook, and Twitter to get updates! If you enjoyed reading this article, please share it with friends, family, and colleagues.
