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On today’s Business Beat, Jeff says we simply can’t escape rising advertising costs on social media platforms, according to a businessinsider.com report, and what it means for small businesses.
Tune in to learn what small businesses can do in response:
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Good morning, Paul!
Challenging times for small businesses these days. But as you know, we Detroiters are up for the challenge. We’re a gritty bunch, Paul. Maybe most challenging today are the inflationary pressures small businesses are facing. It’s belt-tightening time, and while we try to get through these tough economic times, one thing we can’t let go of is advertising our businesses, continuing to create that awareness and traffic that ultimately leads to sales.
One of the most important challenges for small businesses to achieve that are the social media platforms and unfortunately, like all things today, costs to advertise have gone up significantly for those platforms you see. During the pandemic, we were focused on going online, we all were, and that increased demand has driven prices up and they’re sticking with us.
Now this morning on the Business Beat, we’re gonna break down where the costs stand at for the most popular social media ad platforms, according to information just published in businessinsider.com by Lauren Johnson. Meta (that’s Facebook) and Instagram CPM prices — that’s the cost per thousand impressions standard — is up 39% year-over-year, 33% year-to-date. Google CPM pricing for search ads up 12% year-over-year. Amazon, costs up 11% year-over-year from a CPM standpoint and last but not least, it’s TikTok up 70% year-over-year.
So there you have it, Paul, we simply can’t escape rising costs these days, it seems, including advertising costs. Now our bottom line: Be more selective in your ad campaigns and the platforms you choose to market on. Make sure the channel matches up well with your target audience. And, most of all, value your existing customers. Cater to them as a priority. Remember inherently an existing customer costs zero from a customer acquisition standpoint. You’ve already spent money to get ’em, now keep ’em! Retaining customers is a major focus during these tough times.
I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.