There’s no denying that the economy is in a tough spot right now. Inflation is making most Americans buckle down on their spending: consumers are thinking twice before filling their car with gas or buying a dozen eggs at the supermarket (the price of the latter having increased by 150% in the past year). Interest rates are also soaring and many are concerned with the economic turmoil experienced across the globe, with little hope of the current climate improving anytime soon.
Advertisers are worried, and with good reason: a harsh economic climate means less consumers are willing to open their wallets for what they see in ads, even if it’s something they find appealing. Publishers have reason to be nervous too, as advertisers will inevitably decrease their ad budgets to fit the circumstances. These concerns have already had an impact on the industry. In 2021, the AdTech industry was valued at $438 billion. However, according to AdExchanger, the industry saw a noticeable decline of about 60% when it came to deal activity in 2022.
So, what are advertisers and publishers to do in such conditions? While it may seem like a tough economy and its effect on the ad tech industry are out of your hands, there are a number of things you can do to ensure your ads generate maximum revenue, regardless of economic turmoil:
- Be Creative & Targeted with Ad Content
While there are many technical ways to ensure you get the most bang for your buck with ad campaigns, it’s important to first make sure your ad content is doing what it needs to. Having creative, attention-grabbing ads that are targeted directly to your customer base is going to do wonders. Since advertising budgets are tighter nowadays, making lots of ads that *might* work isn’t an option. Instead, focus on what makes your customer tick and use your ad to address it. Steve Martin said it best: “Be so good they can’t ignore you”. In this economic climate, truer words could not be spoken about creative ad content.
- Pay Attention to Measurement
So, your ad creative is punchy and specific to your consumer base…now what? You might think that once the ad is created and ready to be delivered to publishers, your work is done. Wrong! Now is the time to make sure your ad has the best chance for success and this starts with measurement. Make sure you pay attention to the various metrics and analytics that indicate how your ad is fairing in terms of delivery. Utilizing ad servers like SpringServe, which provides detailed hour-by-hour metrics on your ad campaigns, will give you the best shot at making any needed adjustments that could have a big impact on generated revenue.
- Make Sure Your Ads Get Seen
You might have the perfect ad ready to go, but any resources put towards making that ad will be wasted if it never actually gets seen by potential customers. When it comes to measurement, pay special attention to Win-Fill rate (or Fill rate) of your ad campaigns, so you can see how many bids your campaigns are actually winning. Ads that don’t win bids don’t result in impressions, and fewer impressions mean less impact on revenue generation for your brand. It’s more important than ever to utilize any tools at your disposal to make sure your ads win bids. Services like those offered by EuclidIQ optimize your ads so they are in the best possible shape for delivery, and therefore best positioned to win bids. This results in more impressions and thus more revenue, helping you get the most out of a limited advertising budget.
- Reduce CDN Costs
Finally, with limited dollars to spend on an advertising campaign thanks to economic turmoil, it’s important to put every cent towards impactful work translating to revenue. This includes the creation of creative content, ad delivery networks, and tech that will optimize any ads you create. It does not, however, include CDN costs! Utilizing video compression services like those offered by EuclidIQ will significantly reduce CDN costs, so you can put your money where it really matters.
While a struggling economy might be a nerve-wracking thought for advertisers and publishers, not all hope is lost. Knowing what tools are at your disposal to get the most out of your advertising budget will inevitably help you stay ahead of the competition regardless of economic issues. Get in touch with us at email@example.com to learn about all the tools we offer that will help.