Connect with us

MARKETING

How to Calculate Your Web Traffic to Increase Website Revenue

Published

on

How to Calculate Your Web Traffic to Increase Website Revenue

You want to know how to calculate website traffic. That’s smart since your website’s value is both the traffic AND the revenue it can bring in.

Making sure your site works? Check your web traffic. Reacting to changes in your industry? Your website traffic data can help you see how you’re doing.

Measuring web traffic can help you build realistic goals and strategies that lead to increased revenue for your business.

Advertisement

To get started, keep reading, or jump to the section you’re looking for.

Why measure website traffic?

Measuring website traffic can help you pinpoint the performance of specific strategies and campaigns. This data can also help you see if leads are dropping off because of a drop in traffic, forecast annual trends, and notice when a page or link breaks on your site.

Your website traffic tool is like the thermometer in your house. You might think it feels cold, but that tool tells you exactly how cold it is. This helps you decide whether it’s worth turning the heater on.

So, maybe you think your website traffic is lower than it should be. Website traffic data can give you:

  • Page views
  • Referral sources
  • Time on-page

This information can help you figure out where your website needs work and how to make it perform better.

It helps you answer both big-picture and granular questions about your marketing, sales, and growth strategies.

Advertisement

Before You Start Collecting Web Traffic Data

Many businesses claim to be data-driven. But 27% of surveyed small businesses don’t have a documented business strategy.

Without a clear strategy, you can’t use data to help your business grow. And if you’re not measuring current website performance, it will be difficult to set realistic goals.

Monthly website traffic chart

Comparing your website traffic with competitive benchmarks is one place to start. But even if you know how many visitors you think your website should be getting, this data won’t help you understand where your numbers are now. It also won’t help your team work together to reach your goals.

These three steps will help you create a useful web traffic strategy. They can help you make sure that your data analysis is meaningful to your lead, sales, and revenue goals.

1. Decide what questions you want to answer with your data.

Businesses often fail because they’re asking the wrong questions. So, before you start gathering data, it’s important to think about the questions your business wants answers to.

Advertisement

Keep in mind that your questions may change over time. A startup with a month-old website may have questions like:

  • Why is the bounce rate so high?
  • What sources will bring the most qualified leads?
  • Why is blog traffic rising in May, but dropping in July?
  • Where is most referral traffic coming from?

But once your site has been live for five years or more, you may have different questions. These might include:

  • How accurate is this data?
  • Why does this page generate so many conversions?
  • Why have visits gone down on some pages but not others?
  • Why are visitors exiting from the home page?
  • Is the website getting good ROI?

These questions mostly point to one big question:

How much traffic does your site need for you to reach your revenue goals?

Your questions should be specific to your website, business, and your unique goals. While it may be tempting to jump to the next step, spend some time thinking about questions for your site.

You might want to speak to stakeholders across your organization to see if they have ideas too. A SMART goal-setting template can also simplify your goal-setting.

2. Choose the right key performance indicators (KPIs).

Website analytics tools can give you a lot of data, and quickly. A single tool may offer over a hundred different ways of measuring your website data.

So, before you get lost in all the options, it’s best to start with the KPIs that align with your business goals.

Advertisement

For example, say you want to increase pricing for your top tier of products. KPIs that could help you track how this decision has an impact include:

  • Page views for product pages
  • Revenue
  • Traffic by source
  • Bounce rates from pricing pages
  • Sessions for returning customers

It’s a good idea to focus on a handful of key metrics. Measuring and tracking too much data can create a situation where you spend more time watching your data than acting on it.

If you’re not sure which data is right for your business goals, this post goes into more detail on choosing KPIs.

3. Figure out how often you will collect and analyze your data.

Before you begin collecting data, it’s a good idea to set a time frame for data collection.

Checking data can sometimes feel like checking your social media feed. If you check too often, you may be spending more time watching your data than acting on the insights it offers. If you check it infrequently, you may misinterpret the ups and downs of your website traffic.

So, set a consistent cadence for monitoring your web traffic. This can help you make sure that you have an accurate picture of what’s working and what’s not.

If you’re in a fast-moving industry or recently launched a new website or product, daily checks may be useful. But if you can’t act on insights quickly, a weekly schedule for checking website traffic may be a better fit.

Advertisement

How to calculate website traffic example: Daily traffic report

It’s also smart to set aside time to do more detailed analysis of your site traffic. Many businesses will do this monthly or quarterly. Depending on the scale of your organization, you may want to create a separate data schedule for partnerships or campaigns. This can make it easier to isolate this specific data for review.

Once you set a schedule, stick to it. Then, create clear documentation for other members of your team so they can fill in or take over when it’s needed.

For example, if you’re compiling weekly reports, choose a set date for the week to begin and end. If your reporting for each business week starts on Saturday, then shifts to Sunday a few months later, you’ll end up with unreliable data.

1. Choose an analytics tool.

There are many great tools to analyze web traffic. These three tools are popular favorites.

Advertisement

Analytics Tool 1: HubSpot CMS

This tool collects website traffic information including:

  • Page views
  • Sessions
  • Time on page
  • Exit and entrance rates
  • Bounce rates

Reporting in HubSpot connects to platform features including sales, marketing, and service software. This means that you can easily track data through the entire customer journey in one single tool.

Analytics Tool 2: Google Analytics

This popular analytics tool is a helpful tool for collecting website traffic data. It’s free to use and offers many different ways to organize and analyze website data.

This tool offers a range of detailed reports including:

  • Real-time traffic reports
  • Acquisition reports
  • Engagement reports
  • Monetization reporting

Analytics Tool 3: Mixpanel

Besides tracking web traffic, Mixpanel offers product usage and customer behavior data. This is an advanced tool that can give users real-time data across websites and apps.

Features for Mixpanel analytics include:

  • Interactive reports
  • Team dashboards
  • Segmentation options
  • Group analytics

If you’re just starting your research and want to dig deeper into your options, check out this list of top analytics tools.

2. Install the software’s tracking code.

While tracking code installation is different for each tracking tool, most use a special script to collect data. It’s simple to add this script to your site to start analyzing your traffic.

Here’s a step-by-step guide to adding the reporting tracking code with HubSpot. If you’re not a HubSpot customer, you can get started with HubSpot here.

Advertisement

Step 1: Click the gear icon to access Settings after you’ve logged into HubSpot.

How to calculate website traffic instructions: Settings

Step 2: Navigate to Tracking & Analytics in the left-hand menu.

How to calculate website traffic instructions: Tracking and analytics

If you’re using Marketing Starter or HubSpot’s free tools, navigate to Tracking Code in the left sidebar menu.

For all other subscriptions, navigate to Tracking & Analytics > Tracking code in the left sidebar menu.

Step 3: Under the Tracking Code tab, in the Embed code section, click Copy.

How to calculate website traffic instructions: Embed code

You can also click Email to my web developer to send the tracking code to the team member who will be installing it on your site.

Step 4: Install the tracking code on your website.

To install the tracking code, paste the code before the closing </body> tag in the HTML code on each page of your site.

Step 5: After you install the tracking code, learn how to verify installation and troubleshoot the code.

You may want to check with someone else on your team before adding and troubleshooting your tracking code. While this process is simple, these steps will vary based on how your business manages your website.

3. Use the software to track website sessions.

Once you add your tracking code to your site, it may take up to 24 hours for data to appear. Once data starts populating in your dashboard, it’s time to start analyzing.

Advertisement

Every tool will have different reporting options, but this is a quick overview for analyzing your data with HubSpot.

Step 1: In your HubSpot account, navigate to Reports > Analytics Tools.

How to calculate website traffic instructions: Reports

Step 2: Click Traffic Analytics.

How to calculate website traffic instructions: Traffic analytics

Step 3: The tabs at the top let you analyze different types of data.

How to calculate website traffic instructions: Analyze

Step 4: Filter your data by time range or frequency.

How to calculate website traffic instructions: Filters

Step 5: Review the types of data and metrics that answer your questions.

Step 6: Export the report to save your data.

How to calculate website traffic instructions: Export

4. Calculate change over time.

While most analytics tools are easy to use, data analysis can be tough. There are countless ways to parse web traffic data.

There are many ways that you can calculate change on your website. You might be a little overwhelmed by all the options, and that’s normal. If you’re new to web traffic analysis, this guide to commonly used website tracking terms can help.

The formula below is a great place to start as you begin to measure your website performance over time.

Traffic Growth

Let’s say we’re calculating traffic growth from February to March. A simple formula to calculate this change is:

How to calculate website traffic formula: Traffic growth

(March sessions – February sessions) / February sessions

Here’s a numerical example: (1,530-1090)/1,090 = 0.4036

Advertisement

Percentages are easier to read at a glance than decimals, so you may want to convert this number to a percentage by multiplying your result by 100.

For example, .4036 x 100 = 40.36%

5. Dive deeper on your traffic sources.

Once you have a clear picture of growth and other key KPIs, you may have already found some issues you want to work on.

One common question for sites with low visit and session numbers is where website traffic is coming from. There are many different sources that can contribute to your website traffic.

How to calculate website traffic example: Sources

These four sources are the most common:

Direct

Direct traffic usually comes to a web page through other pages on your website. Traffic might also show up as “Direct” when a user types your URL directly into the browser. Direct can also act as a catch-all source for many analytics tools.

Advertisement

Organic search

This website traffic comes from search engines like Google, Bing, and DuckDuckGo. These sources usually show up in your analytics reports automatically.

That said, it’s a good idea to take a look at your settings to make sure that you understand the automatic settings in your tool. For example, DuckDuckGo shows up in organic search sources on some platforms, and in direct sources on others.

Referral

Referrals are site visits that come to you from other websites through backlinks. You can learn more about backlinks in this free lesson.

Social media

These sources show you how much traffic is coming from social media. Some tools will also separate paid and organic social media sources.

As you begin using your analytics to solve problems and troubleshoot to improve your strategies, you may want to learn more. To get you started, check out this guide to website traffic sources.

Now that you’ve learned the basics of measuring your website traffic, it’s time to talk goals.

Advertisement

How to Calculate Traffic Goals to Increase Website Revenue

You may already be familiar with revenue marketing. It’s a strategy that many of HubSpot’s prospects, customers, and partners use.

But it’s also complex and it takes a lot of work to put into action. Marketing analytics tools make it easier to get the data to run the model. But if you’re just learning how to predict and measure ROI from inbound marketing, you may want something simple.

These are the basics:

Revenue Goals Determine Sales Goals

Sales Goals Determine Lead Goals

Lead Goals Determine Traffic Goals

How to calculate website traffic for revenue chart

Let’s talk about how to convert website traffic to revenue step-by-step.

1. Calculate the number of new customers you need in a month.

Most companies have monthly or quarterly revenue goals. If you’re a small business owner or startup and you don’t have these goals, set your goals today. If you’re in marketing and you don’t know what the plans are, sit down with your leadership team and ask, “How can I better support the monthly revenue targets?”

Advertisement

Once you have that number, use this goal to calculate the number of new customers you need each month. The formula is simple:

How to calculate website traffic formula: New customers per month

Monthly revenue goal / Average revenue per new customer = Goal for number of new customers per month

2. Calculate the number of leads you need to hit your new customer goal.

Now that you have a rough number of customers you’re looking for, it’s time to calculate how many leads you need.

To calculate this number you’ll need the average website lead to customer conversion rate for your business. Your conversion rate is the number of leads that take the action you want them to take.

If your business relies on cold calling, this could be tough to figure out. But most businesses will have an appointment to customer close ratio.

If your business doesn’t have a process for calculating your conversion rate, there are also tools that can help. This sales conversion calculator makes it easier for your team to decide conversion and drop-off rates for your sales leads.

Advertisement

Once you have this number, use the formula below to calculate your goal for leads.

How to calculate website traffic formula: Lead generation goal

New customer goal / Lead to customer conversion rate = Lead generation goal

3. Calculate the traffic you need to meet your lead goal.

To calculate how much traffic you need, you’ll want to figure out your website visitor to lead conversion rate. If you just started tracking your website traffic it may be difficult to calculate this number.

That said, some businesses have lead tracking set up. With lead tracking you can automatically see:

  • Lead sources
  • Where leads are in the sales and marketing process
  • Who is working with each lead

If you’re keeping track of the number of leads you’re getting from your website per month, you should be able to combine this figure with your most recent website traffic numbers.

If you’re not able to calculate your visitor to lead conversion rate, do an online search for averages in your industry. Companies that do online lead generation right can get a visitor to lead conversion rate that’s 10% or more in some industries.

Once you have this number, use the formula below to calculate how much website traffic you will need to meet your revenue goals.

Advertisement

How to calculate website traffic formula: Website traffic goal

Lead generation goal / Website visitor to lead conversion rate = Website traffic goal

What Comes Next: How Do You Improve Your Website Traffic?

Calculating website traffic comes after you’ve built your website and started posting content. But this process isn’t an end, it’s a beginning. As you continue to check your site traffic, you’ll develop a better understanding of your customers and how they use your site. These insights will help you build better marketing, products, and strategies.

It’s easy to get overwhelmed once you start looking at your website data every month, but stay open. If you keep learning, your traffic, leads, sales, and revenue have nowhere to go but up.

This post was originally published in April 2010 and has been updated for comprehensiveness.

New Call-to-action

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

MARKETING

How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

Published

on

How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

It’s the age of AI, and our job as marketers is to keep up.

My team at Foundation Marketing recently conducted an AI Marketing study surveying hundreds of marketers, and more than 84% of all leaders, managers, SEO experts, and specialists confirmed that they used AI in the workplace.

AI in the workplace data graphic, Foundation Labs

If you can overlook the fear-inducing headlines, this technology is making social media marketers more efficient and effective than ever. Translation: AI is good news for social media marketers.

Download Now: The 2024 State of Social Media Trends [Free Report]

In fact, I predict that the marketers not using AI in their workplace will be using it before the end of this year, and that number will move closer and closer to 100%.

Advertisement

Social media and AI are two of the most revolutionizing technologies of the last few decades. Social media has changed the way we live, and AI is changing the way we work.

So, I’m going to condense and share the data, research, tools, and strategies that the Foundation Marketing Team and I have been working on over the last year to help you better wield the collective power of AI and social media.

Let’s jump into it.

What’s the role of AI in social marketing strategy?

In a recent episode of my podcast, Create Like The Greats, we dove into some fascinating findings about the impact of AI on marketers and social media professionals. Take a listen here:

Let’s dive a bit deeper into the benefits of this technology:

Benefits of AI in Social Media Strategy

AI is to social media what a conductor is to an orchestra — it brings everything together with precision and purpose. The applications of AI in a social media strategy are vast, but the virtuosos are few who can wield its potential to its fullest.

Advertisement

AI to Conduct Customer Research

Imagine you’re a modern-day Indiana Jones, not dodging boulders or battling snakes, but rather navigating the vast, wild terrain of consumer preferences, trends, and feedback.

This is where AI thrives.

Using social media data, from posts on X to comments and shares, AI can take this information and turn it into insights surrounding your business and industry. Let’s say for example you’re a business that has 2,000 customer reviews on Google, Yelp, or a software review site like Capterra.

Leveraging AI you can now have all 2,000 of these customer reviews analyzed and summarized into an insightful report in a matter of minutes. You simply need to download all of them into a doc and then upload them to your favorite Generative Pre-trained Transformer (GPT) to get the insights and data you need.

But that’s not all.

You can become a Prompt Engineer and write ChatGPT asking it to help you better understand your audience. For example, if you’re trying to come up with a persona for people who enjoy marathons but also love kombucha you could write a prompt like this to ChatGPT:

Advertisement

ChatGPT prompt example

The response that ChatGPT provided back is quite good:

GPT response example

Below this it went even deeper by including a lot of valuable customer research data:

  • Demographics
  • Psychographics
  • Consumer behaviors
  • Needs and preferences

And best of all…

It also included marketing recommendations.

The power of AI is unbelievable.

Social Media Content Using AI

AI’s helping hand can be unburdening for the creative spirit.

Instead of marketers having to come up with new copy every single month for posts, AI Social Caption generators are making it easier than ever to craft catchy status updates in the matter of seconds.

Advertisement

Tools like HubSpot make it as easy as clicking a button and telling the AI tool what you’re looking to create a post about:

AI social media caption generator step 1

The best part of these AI tools is that they’re not limited to one channel.

Your AI social media content assistant can help you with LinkedIn content, X content, Facebook content, and even the captions that support your post on Instagram.

It can also help you navigate hashtags:

AI social media hashtags generator example, HubSpot

With AI social media tools that generate content ideas or even write posts, it’s not about robots replacing humans. It’s about making sure that the human creators on your team are focused on what really matters — adding that irreplaceable human touch.

Enhanced Personalization

You know that feeling when a brand gets you, like, really gets you?

Advertisement

AI makes that possible through targeted content that’s tailored with a level of personalization you’d think was fortune-telling if the data didn’t paint a starker, more rational picture.

What do I mean?

Brands can engage more quickly with AI than ever before. In the early 2000s, a lot of brands spent millions of dollars to create social media listening rooms where they would hire social media managers to find and engage with any conversation happening online.

Thanks to AI, brands now have the ability to do this at scale with much fewer people all while still delivering quality engagement with the recipient.

Analytics and Insights

Tapping into AI to dissect the data gives you a CSI-like precision to figure out what works, what doesn’t, and what makes your audience tick. It’s the difference between guessing and knowing.

The best part about AI is that it can give you almost any expert at your fingertips.

Advertisement

If you run a report surrounding the results of your social media content strategy directly from a site like LinkedIn, AI can review the top posts you’ve shared and give you clear feedback on what type of content is performing, why you should create more of it, and what days of the week your content is performing best.

This type of insight that would typically take hours to understand.

Now …

Thanks to the power of AI you can upload a spreadsheet filled with rows and columns of data just to be met with a handful of valuable insights a few minutes later.

Improved Customer Service

Want 24/7 support for your customers?

It’s now possible without human touch.

Advertisement

Chatbots powered by AI are taking the lead on direct messaging experiences for brands on Facebook and other Meta properties to offer round-the-clock assistance.

The fact that AI can be trained on past customer queries and data to inform future queries and problems is a powerful development for social media managers.

Advertising on Social Media with AI

The majority of ad networks have used some variation of AI to manage their bidding system for years. Now, thanks to AI and its ability to be incorporated in more tools, brands are now able to use AI to create better and more interesting ad campaigns than ever before.

Brands can use AI to create images using tools like Midjourney and DALL-E in seconds.

Brands can use AI to create better copy for their social media ads.

Brands can use AI tools to support their bidding strategies.

Advertisement

The power of AI and social media is continuing to evolve daily and it’s not exclusively found in the organic side of the coin. Paid media on social media is being shaken up due to AI just the same.

How to Implement AI into Your Social Media Strategy

Ready to hit “Go” on your AI-powered social media revolution?

Don’t just start the engine and hope for the best. Remember the importance of building a strategy first. In this video, you can learn some of the most important factors ranging from (but not limited to) SMART goals and leveraging influencers in your day-to-day work:

The following seven steps are crucial to building a social media strategy:

  1. Identify Your AI and Social Media Goals
  2. Validate Your AI-Related Assumptions
  3. Conduct Persona and Audience Research
  4. Select the Right Social Channels
  5. Identify Key Metrics and KPIs
  6. Choose the Right AI Tools
  7. Evaluate and Refine Your Social Media and AI Strategy

Keep reading, roll up your sleeves, and follow this roadmap:

1. Identify Your AI and Social Media Goals

If you’re just dipping your toes into the AI sea, start by defining clear objectives.

Is it to boost engagement? Streamline your content creation? Or simply understand your audience better? It’s important that you spend time understanding what you want to achieve.

Advertisement

For example, say you’re a content marketing agency like Foundation and you’re trying to increase your presence on LinkedIn. The specificity of this goal will help you understand the initiatives you want to achieve and determine which AI tools could help you make that happen.

Are there AI tools that will help you create content more efficiently? Are there AI tools that will help you optimize LinkedIn Ads? Are there AI tools that can help with content repurposing? All of these things are possible and having a goal clearly identified will help maximize the impact. Learn more in this Foundation Marketing piece on incorporating AI into your content workflow.

Once you have identified your goals, it’s time to get your team on board and assess what tools are available in the market.

Recommended Resources:

2. Validate Your AI-Related Assumptions

Assumptions are dangerous — especially when it comes to implementing new tech.

Don’t assume AI is going to fix all your problems.

Advertisement

Instead, start with small experiments and track their progress carefully.

3. Conduct Persona and Audience Research

Social media isn’t something that you can just jump into.

You need to understand your audience and ideal customers. AI can help with this, but you’ll need to be familiar with best practices. If you need a primer, this will help:

Once you understand the basics, consider ways in which AI can augment your approach.

4. Select the Right Social Channels

Not every social media channel is the same.

It’s important that you understand what channel is right for you and embrace it.

Advertisement

The way you use AI for X is going to be different from the way you use AI for LinkedIn. On X, you might use AI to help you develop a long-form thread that is filled with facts and figures. On LinkedIn however, you might use AI to repurpose a blog post and turn it into a carousel PDF. The content that works on X and that AI can facilitate creating is different from the content that you can create and use on LinkedIn.

The audiences are different.

The content formats are different.

So operate and create a plan accordingly.

Recommended Tools and Resources:

5. Identify Key Metrics and KPIs

What metrics are you trying to influence the most?

Advertisement

Spend time understanding the social media metrics that matter to your business and make sure that they’re prioritized as you think about the ways in which you use AI.

These are a few that matter most:

  • Reach: Post reach signifies the count of unique users who viewed your post. How much of your content truly makes its way to users’ feeds?
  • Clicks: This refers to the number of clicks on your content or account. Monitoring clicks per campaign is crucial for grasping what sparks curiosity or motivates people to make a purchase.
  • Engagement: The total social interactions divided by the number of impressions. This metric reveals how effectively your audience perceives you and their readiness to engage.

Of course, it’s going to depend greatly on your business.

But with this information, you can ensure that your AI social media strategy is rooted in goals.

6. Choose the Right AI Tools

The AI landscape is filled with trash and treasure.

Pick AI tools that are most likely to align with your needs and your level of tech-savviness.

For example, if you’re a blogger creating content about pizza recipes, you can use HubSpot’s AI social caption generator to write the message on your behalf:

Advertisement

AI social media generator example

The benefit of an AI tool like HubSpot and the caption generator is that what at one point took 30-40 minutes to come up with — you can now have it at your fingertips in seconds. The HubSpot AI caption generator is trained on tons of data around social media content and makes it easy for you to get inspiration or final drafts on what can be used to create great content.

Consider your budget, the learning curve, and what kind of support the tool offers.

7. Evaluate and Refine Your Social Media and AI Strategy

AI isn’t a magic wand; it’s a set of complex tools and technology.

You need to be willing to pivot as things come to fruition.

If you notice that a certain activity is falling flat, consider how AI can support that process.

Did you notice that your engagement isn’t where you want it to be? Consider using an AI tool to assist with crafting more engaging social media posts.

Advertisement

Make AI Work for You — Now and in the Future

AI has the power to revolutionize your social media strategy in ways you may have never thought possible. With its ability to conduct customer research, create personalized content, and so much more, thinking about the future of social media is fascinating.

We’re going through one of the most interesting times in history.

Stay equipped to ride the way of AI and ensure that you’re embracing the best practices outlined in this piece to get the most out of the technology.

New call-to-action

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

Advertising in local markets: A playbook for success

Published

on

Advertising in local markets: A playbook for success

Many brands, such as those in the home services industry or a local grocery chain, market to specific locations, cities or regions. There are also national brands that want to expand in specific local markets. 

Regardless of the company or purpose, advertising on a local scale has different tactics than on a national scale. Brands need to connect their messaging directly with the specific communities they serve and media to their target demo. Here’s a playbook to help your company succeed when marketing on a local scale.  

1. Understand local vs. national campaigns

Local advertising differs from national campaigns in several ways: 

  • Audience specificity: By zooming in on precise geographic areas, brands can tailor messaging to align with local communities’ customs, preferences and nuances. This precision targeting ensures that your message resonates with the right target audience.
  • Budget friendliness: Local advertising is often more accessible for small businesses. Local campaign costs are lower, enabling brands to invest strategically within targeted locales. This budget-friendly nature does not diminish the need for strategic planning; instead, it emphasizes allocating resources wisely to maximize returns. As a result, testing budgets can be allocated across multiple markets to maximize learnings for further market expansion.
  • Channel selection: Selecting the correct channels is vital for effective local advertising. Local newspapers, radio stations, digital platforms and community events each offer advantages. The key lies in understanding where your target audience spends time and focusing efforts to ensure optimal engagement.
  • Flexibility and agility: Local campaigns can be adjusted more swiftly in response to market feedback or changes, allowing brands to stay relevant and responsive. 

Maintaining brand consistency across local touchpoints reinforces brand identity and builds a strong, recognizable brand across markets. 

2. Leverage customized audience segmentation 

Customized audience segmentation is the process of dividing a market into distinct groups based on specific demographic criteria. This marketing segmentation supports the development of targeted messaging and media plans for local markets. 

Advertisement

For example, a coffee chain might cater to two distinct segments: young professionals and retirees. After identifying these segments, the chain can craft messages, offers and media strategies relating to each group’s preferences and lifestyle.

To reach young professionals in downtown areas, the chain might focus on convenience, quality coffee and a vibrant atmosphere that is conducive to work and socializing. Targeted advertising on Facebook, Instagram or Connected TV, along with digital signage near office complexes, could capture the attention of this demographic, emphasizing quick service and premium blends.

Conversely, for retirees in residential areas, the chain could highlight a cozy ambiance, friendly service and promotions such as senior discounts. Advertisements in local print publications, community newsletters, radio stations and events like senior coffee mornings would foster a sense of community and belonging.

Dig deeper: Niche advertising: 7 actionable tactics for targeted marketing

3. Adapt to local market dynamics

Various factors influence local market dynamics. Brands that navigate changes effectively maintain a strong audience connection and stay ahead in the market. Here’s how consumer sentiment and behavior may evolve within a local market and the corresponding adjustments brands can make. 

  • Cultural shifts, such as changes in demographics or societal norms, can alter consumer preferences within a local community. For example, a neighborhood experiencing gentrification may see demand rise for specific products or services.
    • Respond by updating your messaging to reflect the evolving cultural landscape, ensuring it resonates with the new demographic profile.
  • Economic conditions are crucial. For example, during downturns, consumers often prioritize value and practicality.
    • Highlight affordable options or emphasize the practical benefits of your offerings to ensure messaging aligns with consumers’ financial priorities. The impact is unique to each market and the marketing message must also be dynamic.
  • Seasonal trends impact consumer behavior.
    • Align your promotions and creative content with changing seasons or local events to make your offerings timely and relevant.
  • New competitors. The competitive landscape demands vigilance because new entrants or innovative competitor campaigns can shift consumer preferences.
    • Differentiate by focusing on your unique selling propositions, such as quality, customer service or community involvement, to retain consumer interest and loyalty.

4. Apply data and predictive analytics 

Data and predictive analytics are indispensable tools for successfully reaching local target markets. These technologies provide consumer behavior insights, enabling you to anticipate market trends and adjust strategies proactively. 

  • Price optimization: By analyzing consumer demand, competitor pricing and market conditions, data analytics enables you to set prices that attract customers while ensuring profitability.
  • Competitor analysis: Through analysis, brands can understand their positioning within the local market landscape and identify opportunities and threats. Predictive analytics offer foresight into competitors’ potential moves, allowing you to strategize effectively to maintain a competitive edge.
  • Consumer behavior: Forecasting consumer behavior allows your brand to tailor offerings and marketing messages to meet evolving consumer needs and enhance engagement.
  • Marketing effectiveness: Analytics track the success of advertising campaigns, providing insights into which strategies drive conversions and sales. This feedback loop enables continuous optimization of marketing efforts for maximum impact.
  • Inventory management: In supply chain management, data analytics predict demand fluctuations, ensuring inventory levels align with market needs. This efficiency prevents stockouts or excess inventory, optimizing operational costs and meeting consumer expectations.

Dig deeper: Why you should add predictive modeling to your marketing mix

5. Counter external market influences

Consider a clothing retailer preparing for a spring collection launch. By analyzing historical weather data and using predictive analytics, the brand forecasts an unseasonably cool start to spring. Anticipating this, the retailer adjusts its campaign to highlight transitional pieces suitable for cooler weather, ensuring relevance despite an unexpected chill.

Advertisement

Simultaneously, predictive models signal an upcoming spike in local media advertising rates due to increased market demand. Retailers respond by reallocating a portion of advertising budgets to digital channels, which offer more flexibility and lower costs than traditional media. This shift enables brands to maintain visibility and engagement without exceeding budget, mitigating the impact of external forces on advertising.

6. Build consumer confidence with messaging

Localized messaging and tailored customer service enhance consumer confidence by demonstrating your brand’s understanding of the community. For instance, a grocery store that curates cooking classes featuring local cuisine or sponsors community events shows commitment to local culture and consumer interests. 

Similarly, a bookstore highlighting local authors or topics relevant to the community resonates with local customers. Additionally, providing service that addresses local needs — such as bilingual service and local event support — reinforces the brand’s values and response to the community. 

Through these localized approaches, brands can build trust and loyalty, bridging the gap between corporate presence and local relevance.

7. Dominate with local advertising 

To dominate local markets, brands must:

  • Harness hyper-targeted segmentation and geo-targeted advertising to reach and engage precise audiences.
  • Create localized content that reflects community values, engage in community events, optimize campaigns for mobile and track results.
  • Fine-tune strategies, outperform competitors and foster lasting relationships with customers.

These strategies will enable your message to resonate with local consumers, differentiate you in competitive markets and ensure you become a major player in your specific area. 



Dig deeper: The 5 critical elements for local marketing success

Advertisement

Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

Battling for Attention in the 2024 Election Year Media Frenzy

Published

on

Battling for Attention in the 2024 Election Year Media Frenzy

Battling for Attention in the 2024 Election Year Media Frenzy

As we march closer to the 2024 U.S. presidential election, CMOs and marketing leaders need to prepare for a significant shift in the digital advertising landscape. Election years have always posed unique challenges for advertisers, but the growing dominance of digital media has made the impact more profound than ever before.

In this article, we’ll explore the key factors that will shape the advertising environment in the coming months and provide actionable insights to help you navigate these turbulent waters.

The Digital Battleground

The rise of cord-cutting and the shift towards digital media consumption have fundamentally altered the advertising landscape in recent years. As traditional TV viewership declines, political campaigns have had to adapt their strategies to reach voters where they are spending their time: on digital platforms.

1713626763 903 Battling for Attention in the 2024 Election Year Media Frenzy1713626763 903 Battling for Attention in the 2024 Election Year Media Frenzy

According to a recent report by eMarketer, the number of cord-cutters in the U.S. is expected to reach 65.1 million by the end of 2023, representing a 6.9% increase from 2022. This trend is projected to continue, with the number of cord-cutters reaching 72.2 million by 2025.

Moreover, a survey conducted by Pew Research Center in 2023 found that 62% of U.S. adults do not have a cable or satellite TV subscription, up from 61% in 2022 and 50% in 2019. This data further underscores the accelerating shift away from traditional TV and towards streaming and digital media platforms.

As these trends continue, political advertisers will have no choice but to follow their audiences to digital channels. In the 2022 midterm elections, digital ad spending by political campaigns reached $1.2 billion, a 50% increase from the 2018 midterms. With the 2024 presidential election on the horizon, this figure is expected to grow exponentially, as campaigns compete for the attention of an increasingly digital-first electorate.

For brands and advertisers, this means that the competition for digital ad space will be fiercer than ever before. As political ad spending continues to migrate to platforms like Meta, YouTube, and connected TV, the cost of advertising will likely surge, making it more challenging for non-political advertisers to reach their target audiences.

Advertisement

To navigate this complex and constantly evolving landscape, CMOs and their teams will need to be proactive, data-driven, and willing to experiment with new strategies and channels. By staying ahead of the curve and adapting to the changing media consumption habits of their audiences, brands can position themselves for success in the face of the electoral advertising onslaught.

Rising Costs and Limited Inventory

As political advertisers flood the digital market, the cost of advertising is expected to skyrocket. CPMs (cost per thousand impressions) will likely experience a steady climb throughout the year, with significant spikes anticipated in May, as college students come home from school and become more engaged in political conversations, and around major campaign events like presidential debates.

1713626764 529 Battling for Attention in the 2024 Election Year Media Frenzy1713626764 529 Battling for Attention in the 2024 Election Year Media Frenzy

For media buyers and their teams, this means that the tried-and-true strategies of years past may no longer be sufficient. Brands will need to be nimble, adaptable, and willing to explore new tactics to stay ahead of the game.

Black Friday and Cyber Monday: A Perfect Storm

The challenges of election year advertising will be particularly acute during the critical holiday shopping season. Black Friday and Cyber Monday, which have historically been goldmines for advertisers, will be more expensive and competitive than ever in 2024, as they coincide with the final weeks of the presidential campaign.

To avoid being drowned out by the political noise, brands will need to start planning their holiday campaigns earlier than usual. Building up audiences and crafting compelling creative assets well in advance will be essential to success, as will a willingness to explore alternative channels and tactics. Relying on cold audiences come Q4 will lead to exceptionally high costs that may be detrimental to many businesses.

Navigating the Chaos

While the challenges of election year advertising can seem daunting, there are steps that media buyers and their teams can take to mitigate the impact and even thrive in this environment. Here are a few key strategies to keep in mind:

Start early and plan for contingencies: Begin planning your Q3 and Q4 campaigns as early as possible, with a focus on building up your target audiences and developing a robust library of creative assets.

Advertisement

Be sure to build in contingency budgets to account for potential cost increases, and be prepared to pivot your strategy as the landscape evolves.

1713626764 197 Battling for Attention in the 2024 Election Year Media Frenzy1713626764 197 Battling for Attention in the 2024 Election Year Media Frenzy

Embrace alternative channels: Consider diversifying your media mix to include channels that may be less impacted by political ad spending, such as influencer marketing, podcast advertising, or sponsored content. Investing in owned media channels, like email marketing and mobile apps, can also provide a direct line to your customers without the need to compete for ad space.

Owned channels will be more important than ever. Use cheaper months leading up to the election to build your email lists and existing customer base so that your BF/CM can leverage your owned channels and warm audiences.

Craft compelling, shareable content: In a crowded and noisy advertising environment, creating content that resonates with your target audience will be more important than ever. Focus on developing authentic, engaging content that aligns with your brand values and speaks directly to your customers’ needs and desires.

By tapping into the power of emotional triggers and social proof, you can create content that not only cuts through the clutter but also inspires organic sharing and amplification.

Reflections

The 2024 election year will undoubtedly bring new challenges and complexities to the world of digital advertising. But by staying informed, adaptable, and strategic in your approach, you can navigate this landscape successfully and even find new opportunities for growth and engagement.

As a media buyer or agnecy, your role in steering your brand through these uncharted waters will be critical. By starting your planning early, embracing alternative channels and tactics, and focusing on creating authentic, resonant content, you can not only survive but thrive in the face of election year disruptions.

Advertisement

So while the road ahead may be uncertain, one thing is clear: the brands that approach this challenge with creativity, agility, and a steadfast commitment to their customers will be the ones that emerge stronger on the other side.


Disruptive Design Raising the Bar of Content Marketing with Graphic

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS