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The Most Cost Effective Advertising Platforms

The cost effectiveness of advertising

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Page 1: The cost effectiveness of advertising

The Most Cost EffectiveAdvertising Platforms

Page 2: The cost effectiveness of advertising

Cost of Advertising

Last month Brian Carter wrote a blog post for the brilliant SEO people at Moz, breaking down the cost of advertising per platform across both traditional and rising digital mediums.

The results, indicate that in terms of costs online advertising is by far the most cost effective method of reaching the masses. While stimulating, it made the HH Global marketing team stop and think about the bigger picture.

Sure, online is much cheaper than newspaper advertising, but how far do online messages resonate in comparison to its older, more traditional alternatives?

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Cost to Reach An Audience of 1000 People

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Cost of Advertising

Advertising across traditional platforms is far from dead. The cost of a 30-second advertisement in the Super Bowl hit $4 million dollars last year – a reflection of the demand and competition to fill that half time space.

Those advertisers are putting $4M aside for televised advertising, not PPC, so it would be foolish to jump to conclusions about any potential online advertising superiority based on cost alone.

On the next slide we can see the apparent effectiveness of various advertising types on buying decision, based on a survey conducted by Twist Image.

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Effectiveness

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Cost of Advertising

By looking at this we can see that the aforementioned Super Bowl comparison holds-up well when looking at television’s influence on consumers. That being said, at 47%, online advertising certainly looks like an effective method of advertising.

All in the good name of research, we got our calculators out and did some maths.

By combining the above two sets of data we were able to create a new chart that outlines the effectiveness of each platform per $1 spent. This seems like a much better way of fairly assessing the cost effectiveness and the emotional effectiveness of each advertising platform comparatively.

So here are the 2014 HH Global advertising rankings:

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Number of People Positively Affected per $1

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Cost of Advertising

Talking about the superiority of online doesn’t seem to be completely unjustified after all. However, it’s worth noting that while consumers deem online effective, the true cost effectiveness of PPC is down to the digital marketer and their targeting.

An online food retailer may reach more people in a Google AdWords display network campaign for a low price – and some of those that see it may be positively affected by the ad - but how many dollars do you waste for every person you reach that’s 100% in the correct market?

Clearly online advertising can resonate when done well, but we have to question how many marketers squeeze absolutely everything out of their PPC campaigns.

What do you think?

Page 9: The cost effectiveness of advertising