As advertisers, we can’t afford to ignore data in our decision-making.
Since you probably just sighed a little bit or rolled your eyes at that sentence, here are four facts that reveal why ignoring data is like ignoring the fact that you are currently on fire:
1. Online advertising is getting more competitive
Since AdWords and other PPC platforms are auction marketplaces, or “pay to play” channels, more players means more money needed to play.
Each year, the Internet Advertising Bureau (IAB) and PwC releases their “Internet Advertising Revenue Full-Year Report,” which compiles revenue data from companies that sell online advertising. Their most recent full-year report, from 2015, shows annual revenues for these companies growing steadily year over year since 2009, with a compound annual growth rate (CAGR) of 17 percent over the past 10 years.
Internet advertising revenue per year, 2005–2015. Source: “2015 Internet Advertising Revenue Full-Year Report” by PwC & Interactive Advertising Bureau
The steadily growing revenue suggests that more and more companies are entering the online advertising arena — and that they are investing more in it, too. Greater competition means higher costs for advertisers. Having to pay more to play makes the consequences of ignoring potential money-saving opportunities in the data greater.
Some opinions expressed in this article may be those of a guest author and not necessarily Marketing Land. Staff authors are listed here.
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