If you advertise at all, then you probably love the possible benefits of advertising but not the high cost and lack of guaranteed outcomes associated with it. Facebook, Google, and other tech giants solidified today’s standard advertising pricing model: put money in, gather impressions, clicks, and engagements, and hope for sales.
It’s been the standard model for so long, almost every marketer has become complacent with this model –– at our company, Klickly, we see a ton of good marketers with the same issue: you’ve accepted that there isn’t a guarantee for actual revenue (or even decent performance), let alone assurance that your return on ad spend (ROAS) will pay off. You’ve settled for paying money ‘up front,’ hoping the ads will get sales.
We’ve talked with multiple companies, and we always hear the same complaints:
- “Wasted a ton of money on advertising, got a bunch of clicks, but only a few sales.”
- “Ads worked great, but my CPC is through the roof!”
- “My ads get people to my site, but the drop-off rate is crazy high!”
What Klickly Can Do For You
After listening to these complaints for over a year, we set out on the giant task of creating an advertising platform that addressed ALL of the 3 issues above. Now, we want to tell you about why we think it’s so important to demand accountable and transparent advertising and how to make sure you get the most out of your ad spend.
Stop paying up front for advertising if the platform doesn’t guarantee performance!
To be fair, it’s an admittedly biased opinion, but that platform no longer has an incentive to work as hard for your sales; they already have your money. That money could have helped pay for other operation costs, another Shopify app, or your vacation fund.
If you’ve used the traditional advertising models in the past but are dissatisfied with the costs and outcomes, then here are 3 tips on how you can take back control of your ads:
- Only pay for ads that actually drive sales
- Find an advertising platform that can guarantee your ROAS (return on ad spend)
- Test your ad creative for efficiency
True performance-based advertising (and it’s not CPC)
Affiliate marketing is the the most common form of this payment model, and affiliate sites can be desirable options for a few reasons:
- They can increase your revenue with little to no work
- They can moderately increase your sales within days of going live
- They have easy access to very specific niches
One point of caution…
Affiliate marketing has a limit: once affiliates reach their core (and regular) audience, it’s very difficult to expand from there. That’s because affiliates aren’t actively advertising your products to different consumers across millions of sites; they’re only showing your products to essentially the same consumers on the same site.
We believe that a successful advertising platform should have the same qualities of a performance-based model AND also advertise your products on multiple sites. And that’s what we’ve aimed to do at Klickly–we actively advertise your products on over 25 million sites (like ESPN, Vogue, Instyle, etc) and you only pay when we drive the sales. As a smart marketer, you can then grown your brand’s audience in an essentially risk-free manner.
Demand a type of guarantee on your ROAS
This is arguably and admittedly the trickiest part of advertising. As we’ve said before, when you pay on CPM, CPC, etc., you’re not guaranteed on what returns or revenue you will get.
In the past, only performance marketing agencies could help you advertise for guaranteed results. Normally, these agencies operate your campaigns and are paid based on the percentage of sales they drive.
This model is risky for these agencies, so they usually only accept some fast-trending brands that sell a niche product with a high margin. They also require brands to agree to lock-in terms without the possibility to easily renegotiate changes. As a marketer, you may be forced to work with the agency for a minimum of 6-12 months and split the revenues at a set 30% or higher–and that’s before you even see any results!
After studying this model, it was apparent that it had potential benefits but clear flaws, so we tried to build Klickly around the good parts of performance marketing agencies. However, there’s a clear difference: unlike agences, Klickly lets you choose your own terms and lock-in your returns. You can also A/B test different commission settings by running more than one campaign at no extra charge.
We’ve seen that once smart marketers are given the ability to have full control over their commission, they use it to lock in their ROAS.
- If you want a guaranteed 5x ROAS (or a 5:1 return), set a 20% commission.
- If you want a guaranteed 2x ROAS (or a 2:1 return), set a 50% commission.
Use efficient, cutting-edge ads
It’s very difficult to create an effective ad that accurately showcases your products while simultaneously capturing consumers’ attention. Today, most people are relatively banner blind to word-heavy advertisements. And even if a consumer clicks on an ad, trying to navigate to the website (often on mobile) to make a purchase is a pain–most consumers will give up before entering their information simply due to frustration.
For a growing brand, this makes it really hard to scale your business.
We wanted to take a radically different approach to ad creative … so we created the first-ever buyable ads, where consumers can buy your products directly within the ads.
Now consumers can make a purchase on the spot, without ever having to leave the page they’re reading, making is faster and easier to purchase your products than ever before.
An interesting fact: over $7 trillion (yes, with a “t” ;) of goods were abandoned in shopping carts in 2017 (eMarketer, Dec 2017). With Klickly ads, consumers don’t get the chance to abandon the cart, since they’ll be purchasing directly within the ads.
See these ads in motion!
There are more online consumers today than in the history of the internet, and its a huge opportunity for brands to take advantage of. Unfortunately, we feel like many other advertising platforms aren’t speaking to brands’ needs; they don’t successful deliver to those that are buying the ads. Using new technology like machine-learning and buyable ads, Klickly wants to change this–by looking into the hard questions and formulating solutions to make the marketer and consumer happy. We hope to alter how brands think about buying advertising.
We hope you keep these 3 tips on guaranteeing your ad spend when buying your future advertising. And if you ever want to try a platform that is innovating the traditional models in the advertising industry…it only takes 5 minutes to set up a campaign with no upfront spending at Klickly.
About the Author: Cooper Harris is a Los Angeles-based entrepreneur and the founder and CEO of Klickly, an impulse-payments platform. Cooper is a contributor to Forbes and HuffPost and has been featured in Inc., Entrepreneur, Mashable and Women2.0 and more.