Performance Advertising: what to do when sales slow down and you have to increase your expenses to compensate for it

By | Published On: November 12th, 2020 | Categories: Strategic Digital Marketing |

When you measure your performance digitally, you often notice – when you compare it with previous years, turnover drops for the same amount of money.

And consequently the advertising expenditure (budget) to keep turnover stable.

This article is the result of years of experience in consulting cosmetic companies and is therefore the result of the results obtained in terms of optimization of Performance.

The first three questions a cosmetic manager usually asks himself are:

  • Is it an isolated case (and therefore depends on my management) or is it a general phenomenon?
  • How much does my digital agency adopt an appropriate media planning strategy?
  • What can I do to optimize my Advertising expenses?

I will answer the first question with an answer from IAB Forum 2020:

In the decade 2020 there is an increase in ADV expenses (in performance marketing) to compensate for turnover.

In practice pay more in advertising to keep the same turnover.

Why is this happening in Performance Marketing?

Mostly for three conspiracies:

  • Crowding: Why is there a growing crowd of competitors operating in the digital world?
  • Reception Station:Because digital is no longer a novelty and therefore less surprising
  • Channel Overload: Because the places to do Adv are always the same GAFA channels (GAFA = Google Apple Facebook Amazon)

Therefore, our consumers perceive a drop in Receptivity due to a repetitive routine that:

  • Decreases the effect of novelty and amazement (WOW effect) in finding your brand in the digital world
  • Increasingly frequent channel crowding by competitors
  • The meeting with the brands always in the same spaces

All this results in a Déja-Vu effect that diminishes the persuasive force of sales performance.

What to do? Branding to increase the receptivity of your sales messages

To make our advertising activity more effective, two mistakes in the approach must be avoided:

  • Download it to the media agency
  • Continue with the same scheme

Let’s analyse the first case: finding in the media agency the scapegoat for all evils.
When we change agency we will find ourselves in the short term a slight benefit, which will be frustrated in the medium and long term.
And why are we getting this benefit? Because – and here we come to the second case – the new media agency will use a different approach, stopping to continue with the same (previous) scheme.

Fuel your Media Agency: your media agency needs marketing guidance

Your media agency needs the marketing input.

We must support BRAND, the intangible asset of our company.

And that’s why we need your support and brand guidance.

In order to combat this phenomenon, it is necessary:

    • Provide the media agency with new strategic information for a different approach.
    • Balancing Brand Equity

We must support BRAND, the intangible asset of our company.

And we have to do it on two counts:

  • Either by giving the media agency coordination on our brand (can not dream about it, they are not our cosmetics company. They are proudly our agency).
  • By creating an allocation of our budgets there are many factors to consider

The ability to return in the short term is represented by the strength of the brand:

  • The stronger the brand
  • More generates return in channels
  • Because it generates receptivity

Helping your business in Brand Strategy: the cosmetic marketing approach

Cosmetics Marketing supports cosmetics managers in optimizing the strategic assets inherent in the brand’s values. Contact us and tell us your marketing needs

Pubblicazioni

Enrico Giubertoni, I social nella Cosmesi, Tecniche Nuove Editore

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Collaborazioni istituzionali

Mentore Mib Master in International Business at Università Cattolica del Sacro Cuore di Gesù