For those of you balancing a day job with your side hustle, mastering paid advertising could be your golden ticket to growth and success.
Here’s why diving into paid advertising can be a game-changer for your side business:
- Immediate Visibility: Paid advertising catapults your project from the shadows directly into the spotlight. Unlike organic growth strategies that take time to build momentum, paid ads offer immediate visibility. This means your side hustle can start attracting attention, customers, and sales much faster.
- Targeted Reach: One of the most powerful aspects of paid advertising is its ability to zero in on your ideal audience. Platforms like Google Ads and Facebook Ads allow you to specify who sees your ads based on demographics, interests, behaviors, and even search intent. This targeted approach ensures that your message reaches those most likely to be interested in what you’re offering.
- Scalable Results: With paid advertising, you have control over your budget and can adjust your spending based on results. This scalability means that as you begin to see what works, you can invest more in those areas to amplify your success.
- Data-Driven Decisions: The analytics provided by paid advertising platforms offer insights into what’s working and what isn’t. This data-driven approach to marketing enables you to refine your strategies, optimize your ads, and get better returns on your investment.
- Competitive Edge: Paid advertising gives you a competitive edge, allowing your side hustle to appear alongside or even above established brands. This visibility can be crucial for winning over customers and establishing your place in the market.
- Brand Building: Beyond direct sales and leads, paid advertising plays a significant role in building brand awareness. Even if people don’t click on your ad the first time they see it, the repeated exposure increases recognition and trust over time, contributing to long-term growth and success.
This week’s newsletter is designed especially for side hustlers who are new to the world of paid advertising.
We’re here to simplify things and show you how to use this amazing strategy to get your side hustle off the ground and making money as quickly as possible. Let’s do this!
This week’s newsletter brings you:
- Trends – It can be daunting to know whether or not you’re doing a good job with your ads, that’s why this week we bring you the average cost across industries.
- Strategies – This week we offer insights and actionable advice to empower you to make informed decisions in your advertising endeavors.
- Tool of the Week – AdCreative.ai combines automation, integration, and intelligence to make advertising simpler and more effective for side hustlers!
Trends
Whether you’re doing PPC for the first time or you’ve played with paid advertising in the past, it can be daunting to know whether or not you’re doing a good job.
Sure, we all want to create unicorn ads that have highest click through rates and the best conversion rates, but what is a good metric for one industry isn’t necessarily good for another. So what numbers should you be looking to beat in your industry?
Global Advertising Spend 2000-2024
Let’s start by taking a quick look at advertising spend. According to data collected by Statista, global advertising spending in 2023 reached approximately 822 billion U.S. dollars. Forecast data indicates that the ad spending worldwide will reach nearly 885 billion U.S. dollars by the end of 2024.
Google Ads Search Average CPA
CPA’s have shifted quite a bit in the past couple of years. The lowest cost per action across industries is now autos, coming in at just $33 per action. B2B, real estate, and tech companies, on the other hand, confront average costs per action over $100.
We generally expect costs in advertising to rise over time, but the average CPA on the search network is actually lower now than it was a couple of years ago. Display CPA’s, however, have gone up a little bit.
Google Ads Search Average Conversion Rate
A couple of years ago, the Finance and Insurance industries were leading the pack when it came to conversion rates.
However, newly updated data from WordStream shows that the Dating & Personal industry is way out ahead now, with search conversion rates on average over 9%! Other standouts include the legal industries, consumer services, and autos.
Strategies
The landscape of paid advertising offers a fertile ground for side businesses to flourish.
By investing in paid advertising, you can amplify your reach, target potential customers more effectively, and accelerate business growth.
However, navigating this world can be daunting without a fundamental understanding of its mechanisms and strategies.
That’s why we’re here to bridge that gap, offering insights and actionable advice to empower you to make informed decisions in your advertising endeavors.
An overview of Paid Advertising
Paid advertising is a dynamic tool that allows businesses to gain visibility in a crowded marketplace by paying for ad space across various digital platforms.
This section will explore the primary formats of paid advertising—social media ads, search engine ads, and display ads—along with an introduction to essential terminology.
Formats of Paid Advertising
- Social Media Ads: Leveraging platforms like Facebook, Instagram, and LinkedIn, social media ads are designed to reach a targeted audience based on demographics, interests, and behaviors. These ads can be customized with engaging visuals and interactive elements to promote brand awareness, engagement, or conversions.
- Search Engine Ads: Often associated with platforms like Google Ads and Bing Ads, search engine advertising involves placing ads in search engine results based on keywords. This format is particularly effective for reaching users actively searching for products or services, offering a high intent to purchase or engage.
- Display Ads: Display advertising includes banners, sidebars, and interactive ads placed on websites, forums, and blogs across the internet. These ads are used to build brand awareness and retarget visitors by appearing on various websites visited by the target audience.
Key Terminology
- Cost Per Click (CPC): This is the amount you pay each time someone clicks on your ad. CPC is a common pricing model for search engine and social media advertising, where the focus is on driving traffic to a website or landing page.
- Cost Per Mille (CPM): Also known as cost per thousand impressions, CPM is a metric that denotes the price of 1,000 ad impressions on a webpage. This model is preferred when the goal is to increase brand visibility rather than drive immediate action.
- Ad Impressions: This term refers to the number of times an ad is displayed, regardless of whether it is clicked or not. Impressions give an idea of the reach of your ad and are crucial for campaigns focused on brand awareness.
- Click-Through Rate (CTR): CTR is a ratio showing how often people who see your ad end up clicking it. This metric is vital for assessing the effectiveness of your ad copy and visuals, indicating the ad’s relevance and appeal to the target audience.
Understanding these formats and terminology is essential for planning, executing, and evaluating paid advertising campaigns effectively.
Each format serves different business goals from brand awareness to direct sales, while the terminology helps you measure success and make informed decisions to optimize ad performance.
Setting Goals and Budget
Starting an advertising campaign is like planning a journey—you need to know where you’re going and how much you can spend to get there. Here’s a simple breakdown to help you figure out your goals and decide on your budget:
Setting Your Advertising Goals
- Increasing Brand Awareness: This is all about getting your name out there. If you want more people to know about your side hustle, this is your goal. It’s like telling the world, “Hey, look at what I’m doing!”
- Boosting Sales: If you’re looking to sell more products or services, this is your target. It’s about convincing people not just to look, but to buy.
- Generating Leads: This is for when you want more potential customers to reach out to you, giving you their contact information so you can follow up. It’s like gathering a crowd interested in what you offer.
Deciding on Your Budget
- Be Realistic: Your budget should match what you can afford to spend. Remember, this is a side hustle, so you don’t want to put all your money into ads without taking care of your main financial needs.
- Understand ROI: Return on Investment (ROI) means figuring out what you get back from what you spend. If you put $1 into advertising, how much do you get back in sales or leads? Understanding this will help you decide if your ad spend is worth it.
- Start Small and Adjust: You don’t have to spend a lot at first. Start with a small budget, see how it goes, and then adjust based on what you learn. It’s like testing the waters before diving in.
Choosing the right goals and setting a budget that reflects your financial reality and ambitions is key. It’s about making smart choices that help grow your side hustle without breaking the bank.
Choosing the Right Platforms
Choosing where to advertise is a big decision. Here’s an overview of your options, along with their advantages and disadvantages, plus some advice on how to choose the best one for your needs.
Google Ads
What it’s good for: Getting your ads in front of people who are already looking for what you’re selling.
Pros:
- High Intent: People seeing your ads are searching for something specific, so they’re more likely to buy.
- Wide Reach: Google is huge, so your ads can be seen by a lot of people.
Cons:
- Competition: It can be expensive, especially if lots of businesses are bidding on the same keywords.
- Complexity: There’s a learning curve to using it effectively.
Facebook & Instagram Ads
What they’re good for: Reaching a specific audience with interests related to your product or service.
Pros:
- Detailed Targeting: You can get really specific about who sees your ads, from age and location to interests and behaviors.
- Visual Appeal: These platforms are all about images and videos, so you can make your ads pop.
Cons:
- Ad Fatigue: People might get tired of seeing ads, so you need to keep yours fresh and engaging.
- Changing Algorithms: What works today might not work tomorrow, as these platforms often change how ads are shown.
LinkedIn Ads
What it’s good for: B2B (business-to-business) products or services and professional audiences.
Pros:
- Professional Targeting: It’s great for reaching professionals and decision-makers in specific industries.
- Credibility: Being on a professional network adds a level of trust to your ads.
Cons:
- Cost: Generally more expensive than other social platforms.
- Niche Audience: It’s great for B2B, but not as effective for broad consumer products.
How to Choose
- Know Your Audience: Think about where your potential customers spend their time. Are they professionals on LinkedIn, or are they browsing Facebook and Instagram?
- Match Your Goals: If you want quick sales from people searching for what you offer, Google Ads might be the way to go. For building brand awareness or targeting specific interests, social media ads are better.
- Budget Wisely: Some platforms are more expensive than others. Consider your budget and what you’re willing to spend to reach your audience.
- Test and Learn: Don’t be afraid to try different platforms to see what works best for you. Advertising is often about experimenting and optimizing based on results.
Choosing the right platform is about understanding your audience, aligning with your goals, managing your budget, and being willing to adjust based on what you learn.
Creating Effective Ad Campaigns
Getting your ads just right is like fine-tuning a recipe until it tastes perfect. Here’s how to make sure your ads hit the spot with your audience, and keep getting better over time.
Know Who You’re Talking To
The first step is really understanding who your ads are for. What do they like? What do they need? Your ads should talk to them like a friend who knows just what they’re looking for. This means using the right words and images that connect with their desires and interests.
Test and Learn: The Magic of A/B Testing
Imagine you’re choosing between two photos to use in your ad, and you’re not sure which one will work better. A/B Testing is like letting your audience vote for their favorite.
You show one version of your ad to half your audience (that’s the “A” group) and the other version to the other half (the “B” group) to see which one gets a better response. This way, you can keep using the winning elements in your future ads.
Tips for Making Ads that Perform Better
- Refine Your Targeting: Make sure you’re talking to the right people. If your ads aren’t hitting the mark, tweak who you’re targeting. Sometimes, even small changes can make a big difference.
- Mix It Up: Don’t be afraid to try new things with your ads. Different formats (like videos, images, or text) can attract attention in different ways. See what your audience prefers.
- Keep an Eye on Results: Always look at how your ads are doing. Which ones are people clicking on? Which ones are leading to sales or sign-ups? Use this info to make your next ads even better.
Optimizing your ads is all about understanding your audience, experimenting with your approach, and using what you learn to make your ads more effective. It’s a continuous process of testing, learning, and tweaking to find what works best.
Digging into the data
Think of analyzing your ad campaign like being a detective. You’re looking at clues (the data) to solve a mystery: how can you make your ads work better? Let’s break down how to do this, using a Google Ad as an example.
Step 1: Understand Your Key Performance Indicators (KPIs)
KPIs are the key clues in our detective work. For a Google Ad, these might include:
- Click-Through Rate (CTR): How often people click on your ad after seeing it. A high CTR means your ad is catching people’s attention.
- Conversion Rate: How often a click leads to the action you want, like a sale or sign-up. A high conversion rate means your ad is not just interesting, but it’s convincing too.
- Cost Per Conversion: How much you’re spending to get each sale or sign-up. Lower costs here mean more efficiency.
Step 2: Look at the Data
Next, dive into the Google Ads dashboard to see how your campaign is doing. You’ll see lots of numbers, but keep your focus on the KPIs we mentioned. For example, you might see:
- A CTR of 2% (which means 2 out of every 100 people who see your ad click on it).
- A conversion rate of 10% (which means 10% of the clicks lead to a sale or sign-up).
- A cost per conversion of $5 (every sale or sign-up costs you $5).
Step 3: Interpret What You See
This is where you turn data into insights. Ask yourself:
- Is the CTR lower than expected? Maybe your ad isn’t standing out enough or isn’t relevant to the people seeing it.
- Is the conversion rate low? Perhaps the ad’s message isn’t convincing enough, or the landing page isn’t appealing.
- Is the cost per conversion too high? You might be spending too much for the results you’re getting.
Step 4: Make Adjustments
Based on your detective work, decide what to change. For example:
- If your CTR is low, try a more eye-catching headline or use keywords that match what your audience is searching for.
- If your conversion rate is low, make sure your ad promises match what’s on your landing page. Or, make your call-to-action (CTA) clearer.
- If your cost per conversion is high, you might need to target your ad more precisely to reach people more likely to buy or sign-up.
Step 5: Keep Monitoring
The detective work never really stops. Keep an eye on your KPIs after you make changes to see if performance improves. This ongoing process helps you learn what works best for your ads and refine your strategy over time.
Analyzing ad data isn’t just about numbers; it’s about understanding what those numbers say about how well your ads are reaching and convincing your target audience. By being a good data detective, you can make smarter decisions that lead to more successful campaigns.
Case Studies and Success Stories
Seeing how others have nailed their advertising can give you great ideas and a big motivational boost. Here are a couple of examples showing what can happen when you get your paid advertising just right.
Case Study 1: The Handmade Jewelry Start-Up
The Challenge: A small business owner started making handmade jewelry as a hobby. They wanted to turn this passion into a profitable venture but had a limited budget and no idea how to reach potential customers.
The Strategy: They decided to use Facebook Ads because they knew their target customers—women aged 20-40 who appreciated handmade crafts—spent a lot of time on the platform. They used eye-catching photos of their jewelry, targeted their ads based on interests related to handmade crafts and fashion, and set a modest daily budget to test the waters.
The Result: The ads struck a chord. The click-through rates were high, leading to a significant increase in website visits and, most importantly, sales. The return on investment (ROI) was positive, allowing the owner to reinvest in more ads and gradually increase the budget. Within six months, what started as a hobby turned into a thriving online business.
Case Study 2: The Fitness App
The Challenge: A tech entrepreneur developed a fitness app that personalized workout plans but struggled to gain visibility in a crowded market.
The Strategy: They used Google Ads, targeting keywords related to fitness, personal training, and healthy lifestyles. They crafted compelling ad copy that highlighted the app’s unique selling proposition—personalization. They also used A/B testing to refine their ads based on performance, focusing on the ads that brought in the most app downloads.
The Result: The targeted approach paid off, with a surge in app downloads and positive reviews. The ads helped the app stand out in a competitive niche, and the data from A/B testing provided insights for future updates and marketing strategies. The entrepreneur managed to build a loyal user base and establish a solid foundation for growth.
What We Can Learn
These stories show that understanding your audience, choosing the right platform, and continuously refining your approach based on data can lead to impressive results, even on a tight budget.
Whether it’s turning a hobby into a profitable business or making a new app stand out, the right paid advertising strategy can make all the difference.
By taking lessons from these success stories, you can apply similar strategies and mindsets to your own side hustle. It’s all about starting small, learning from the data, and scaling up your efforts as you see what works best for your specific situation.
Tool of the Week
AdCreative.ai is an innovative tool designed to streamline and enhance the ad creation process, making it an excellent resource. Here’s why AdCreative.ai is an excellent tool for side hustlers dipping their toes into paid advertising:
- AI-Driven Design: Automates the creation of optimized ad creatives, saving time and effort in design.
- Platform Integration: Directly exports creatives to major ad platforms like Google Ads and Facebook Ads, streamlining campaign setups.
- Data-Driven Insights: Offers performance analysis and recommendations to enhance ad effectiveness.
- Efficiency: Reduces the time and cost associated with designing ads, making it ideal for those with limited resources.
- Brand Consistency: Allows for easy customization to maintain a consistent brand identity across ads.
- User-Friendly: Accessible to users without design expertise, enabling professional-quality ad creation.
- Scalability: Supports growing advertising needs with a variety of creatives for testing and optimization.
AdCreative.ai combines automation, integration, and intelligence to make advertising simpler and more effective for side hustlers, helping them to achieve better results with less time and financial investment.
