A November 2021 report by Insider Intelligence found that marketers are addicted to Google. They spend over half their advertising budgets there, regardless of the vertical.
There are many reasons why companies that seek my growth assistance rely too heavily on these two advertising giants. They have the maturity, scale, and targeting capabilities, as well as a vast ecosystem that offers ways to reach clients, from brand awareness to retention and retargeting.
In other words, marketers may decide to invest exclusively in Google and Facebook ads to find, engage, and nurture a large base of customers, as well as convert and retain them. Shouldn’t they do this?
Cons of sticking with Google and Facebook
Here is a list of reasons to continue investing heavily in Google and Facebook. (Specifically, the Google ecosystem, which includes YouTube, Google Display Network, Instagram, and other social media platforms.) This is a powerful argument.
The following resources are available to you:
Brands or agencies with budget or hiring restrictions may find it difficult to divert their resources from channels that generate the most revenue. It’s important to test, but it is much easier to test on well-known platforms rather than new ones.
Account Support
Google and Facebook representatives are good resources for companies that spend a lot on these platforms. Except for a few exceptions, the majority of emerging channels do not offer as robust account support. This can be problematic when you are trying to learn new user interfaces and their quirks.
Channel Maturity
Google and Facebook have much better ad platforms than their competitors, including TikTok and Reddit. Quora and Amazon are also well-established. With maturity come real, tangible benefits, such as a wide range of targeting options and sophisticated ad format. This powerful auto-tuning algorithm helps advertisers optimize performance by increasing volume learning and nuanced reporting.
Measurement
Google and Facebook offer channel analytics and measurements that are difficult for smaller competitors to match. Both platforms struggle to track conversions off-platform in the wake of iOS14. However, all user actions within their walled gardens are easily tracked.
Cons of sticking with Google and Facebook
Diversifying your channel mix is a good idea for many reasons. (In the next section, we will discuss brand-specific conditions that should make it a no-brainer.)
Costs
Engagement costs are high because everyone advertises on Google or Facebook.
Early adoption of new channels and smart targeting of high-value audiences in areas of lower competition are both ways for advertisers to find cost-savingsAudie, you’rere missing out on a huge amount of engagement if you want to reach Gen Z or youngemillennialsls. You could be ignoring a large segment of Boomers ifdon’tdon’t explore Bing.
Consider engaging your most valuable users on platforms other than Facebook and Google.
Overinvesting risks
Diversifying your investments, as any financial expert will tell you, is a smart idea. The same principle applies to advertising. Diversification can protect you from calamity if you are overinvested.
You may not think it could happen to you. But, if you do, you should read about the impact that the Google Panda Update in 2011 had on Facebook advertisers. Or, perhaps, a bit more recently, you might want to look at the impact iOS 14 had on Facebook advertising, which leFacebook’sook’s first quarter revenue decrease.
Returns on Investment Diminish
According to the law of diminishing returns, the more money you spend on something, the less benefit you will get from it. However, increasing the amount of money spent on Google or Facebook to reach scale is not as effective as other ways to grow.
If you have ambitious growth plans, be prepared to pay an increasing CPA on Google and Facebook. Or find alternative acquisition channels.
Expansion Signposts
You should also be aware of specific signs that you can look for in your advertising campaign to tell you it’s it’s the right time to switch channels.
- More volume means lower-value engagements.
- Creative testing has little to no effect on performance
- Consistently high CPAs from users outside your core audience
- The demographic trends that are driving people away from your core channels
- Business goals are updated to align with other channels.
What to do when you want to expand into new channelsyou’veou’ve made it this I’m, I’m assuyou’reou’re willing to consider the idea of expanding and diversifying your channWhat’shat’s next?
The list of available platforms grows every month. By the time you finish reading this article, BeReal will likely be making headlines due to its increasing popularity with Gen Z.
You must select the correct channels to test and understand their position in the purchasing journey. You should also have realistic expectations about how long it will take for the channels to produce results.
Direct-response information will be generated almost immediately for any channel that you have already established awareness of and can utilize first-party data. This includes SMS, Email, Retargeting, or Google Shopping. You should evaluate any up-funnel channels where you are introducing your product or brand for the first. (social media, display, podcasts, CTV, native) using different KPIs.
If you choose channels that are not aligned with your business objectives or evaluate them using KPIs that do not match the strengths of the channel, it will lead to a lot of false negatives and reduce your desire to find new growth paths. This would be detrimental to your marketing campaigns, both short-term and long-term.don’tdon’t have to hire an entire new team in order to set up a new marketing channel. There are many freelancers availabltoday’sday’s market who can get you started quickly and with minimal investment. You can use the right talent to set up effective testing conditions, and realistic expectations of channel impact. This is crucial for understanding whether or not a new channel will be viable once you begin spending.