I recently had the amazing opportunity to join Nicholas Scalice in an episode of his podcast Growth Marketing Toolbox. We discussed what 2023 has in store for advertisers and how they can optimize their campaigns for maximum ROI.
Some exciting things are happening in the ad space right now.
From a social media perspective, we are seeing trends like TikTok cementing its position as an advertising channel and rising as a search engine. Brands are behaving more like creators when it comes to ads and organic content alike, while short-form video rules over all the other advertising formats.
Not at all surprising since it’s highly engaging and oftentimes requires minimum effort to create.
On the flip side, as we enter 2023, the cost of running display ad campaigns is increasing, and acquiring customers is more difficult due to economic and political influences.
Campaigns must be calibrated for maximum results to extract value and improve customer acquisition. Optimization has always been a must for marketers, but in the next year, it will become the top priority.
Where to begin optimizing a campaign?
Focusing more on creative production and creative personalization is the best starting point. It may sound like an obvious thing to do, but sometimes we forget how powerful relevant creatives can be. Generally, the more personalized an ad is, the better it performs.
Still, the challenge with personalized creatives is to find the balance between personalization and privacy—because users want both. I believe automation is critical to achieving this.
Tools like Creatopy allow marketers to generate dynamic ads at scale and serve them to users based on different characteristics. For instance, someone located in France will see an ad with a French copy. Alternatively, a person from Germany will be served a German variation of the same ad. Everything is automated and based on geolocation data.
Moving on, the creative can also be used as a targeting mechanism. Yes, you read that right.
I’m aware the consensus is narrow targeting brings the best results. But hyper-targeting tends to be costly, especially right now. However, if you keep the net wide, targeting a broader audience but using personalized ads, you can generate high engagement. If the ad is relevant to them, users will stop and click.
You shouldn’t give up on granularity in terms of targeting altogether, but try to hit a sweet spot between the narrowness of the audience and the value the creative brings to the game.
That brings me to my next point: you need to A/B test creatives and see what works best for your audience. We recommend running tests periodically, not just when things aren’t working well.
If you want to listen to the entire discussion and learn more about current advertising trends and actionable tips to improve campaign performance, hit play on the podcast episode below.