Paid Ads Failing You? Why Small Businesses Need a Smarter Digital Marketing Strategy

Are you a small business owner pouring money into paid ads, hoping for a flood of new customers, only to find your bank account draining faster than your lead list is growing? You’re not alone. Many businesses find themselves in this frustrating cycle, wondering if paid advertising is truly worth the investment (especially if paid ads is their entire digital marketing budget).

The answer is mostly no. Neil Patel did a recent study to find that only 21.8% of marketers were able to make their paid ads profitable. A whopping 78.2% aren’t able to make paid ads work. The key point is that paid ads can be effective, but only when they’re part of a well-rounded digital marketing strategy. If you’re solely relying on paid ads and neglecting other crucial elements, you’re likely missing out on significant growth opportunities.

Why Paid Ads Alone Aren’t Enough

I’ve encountered clients who, after just 30 days of a digital marketing plan, claim they could have achieved better results with paid ads. This highlights a common misconception: the belief that immediate results are the sole measure of success. “As digital marketers, it’s crucial to educate clients on the long-term benefits of content creation, emphasizing that it can take 3-6 months to see noticeable improvements. This requires patience and trust, but the payoff in terms of organic growth, brand authority, and sustainable lead generation is well worth the wait. Paid ads, while capable of driving immediate traffic, often fall short in delivering sustainable, long-term results for small businesses,” noted Steven Lockhart of Branding | Marketing | Advertising.

Here’s why paid ads are not the first answer:

• • High Cost: Paid ads can quickly become a financial drain, especially for businesses with limited budgets. The cost per click (CPC) can vary significantly depending on the industry and competition, and it can be challenging to maintain a positive return on investment (ROI).

• • Temporary Results: The moment you stop paying, the traffic stops. This means you’re constantly on the hook for ad spend to maintain visibility, creating an unsustainable model for long-term growth.

• • Ad Blindness: Consumers are increasingly becoming immune to ads. They’re bombarded with so many messages daily that they often tune them out, making it harder for your paid ads to stand out.

• • Limited Reach: Paid ads typically target a specific audience based on demographics and interests. This can limit your reach and prevent you from connecting with potential customers who might be interested in your products or services.

The Power of a Holistic Marketing Strategy and Content Marketing SEO

If you are a local company (servicing a market within 10-20 miles of a location) you should focus first on getting to the top of Google’s Map Pack. If you seek to get ranked #1 in the local map pack you will probably do so by creating a digital marketing strategy that encompasses various channels and tactics working together to achieve your business goals. While paid ads can play a role, IF you can avoid it, use it as a last resort, it’s crucial to integrate them with other proven methods like:

• • SEO (Search Engine Optimization): By optimizing your website and content for search engines, you can attract organic traffic that doesn’t cost you a dime per click. This is a long-term strategy that builds your online presence and drives consistent results over time. Learn more about our SEO services on our SEO page. Every page should have 5 keywords, meta description, title, and correct URL. What most marketers miss is off-site links, customer centric focus, and how the customer should experience your company.

• • Content Marketing: Creating valuable, informative content that resonates with your target audience can establish you as a thought leader in your industry and build trust with potential customers. This can lead to increased brand awareness, engagement, and ultimately, sales. The goal of content marketing is to be “found” and then to develop trustworthy story building which tells your reader, you found us, now here is what you can expect when you do business with us.

• • Social Media Marketing: Leveraging social media platforms allows you to connect with your audience, build relationships, and share your content with a wider audience. This can help increase brand visibility, drive traffic to your website, and generate leads. Generally speaking you shouldn’t put much effort into social media (maybe 1 post per week) until you can commit at least $500 per month specifically for Social Media and commit to generating at least 10,000 followers who can be integrated with your company…this means they actively like, comment, share your content. Somewhere around $1,000 per month you can move towards posting daily.

• • Email Marketing: Building an email list and nurturing leads with targeted email campaigns can be a highly effective way to convert prospects into customers. Email marketing allows you to personalize your communication and build lasting relationships with your audience. Email marketing should only be utilized when you have a system to capture leads, typically, it doesn’t make sense to do so until you have over 1,000 emails and I wouldn’t recommend having an email campaign professional until you generate over 10,000 emails as open rates are typically 1-2%. …Text campaigns are often more effective!

By incorporating these strategies into your overall marketing plan, you can create a more sustainable and cost-effective approach to attracting and retaining customers.

Paid Ads: When and How to Use Them

While paid ads shouldn’t be your sole focus, they can still be a valuable tool when used strategically. Usually I see paid ads being used by companies who are desperate OR have already built up a strong marketing presence (these are the successful ones). Consider using paid ads for:

• • Specific Campaigns: When launching a new product or service, paid ads can help create initial awareness and drive traffic to your website. Want to test out a new market or create general awareness?

• • Remarketing: Targeting users who have already shown interest in your brand can be a cost-effective way to re-engage them and encourage conversions. This usually has the highest ROI.

• • Seasonal Promotions: Paid ads can be effective for short-term promotions or special offers during peak seasons.

Lead Generation for Business Growth: A Long-Term SEO Approach

Let’s be real – as a small business owner, you’re not just in it for the clicks. You want leads, conversions, and ultimately, a thriving customer base. That’s where a smart lead generation strategy comes in. It’s about nurturing relationships, building trust, and guiding potential customers through a journey that ends with them choosing your brand.

Paid ads might offer a quick boost, but they rarely build lasting loyalty. A well-crafted content marketing strategy, on the other hand, can:

• • Attract: Compelling content draws in your ideal customers through organic search, social media, and other channels.

• • Engage: Informative and entertaining content keeps your audience coming back for more, deepening their connection with your brand.

• • Convert: By providing valuable resources and solutions, you establish yourself as a trusted expert, making it easier for potential customers to take that final step.

How We Can Help

At Branding | Marketing | Advertising, we specialize in developing comprehensive digital marketing strategies that leverage the power of various channels to achieve your business goals. We understand the unique challenges faced by small businesses and are committed to helping you maximize your ROI while building a sustainable online presence. You should expect for every marketing dollar you spend within 6 months it will produce $10 in revenue. What most marketers won’t go through with you is, is this actually profitable for your business?

Scenario: You are generating $100k per month in revenue and are willing to commit $5k per month for digital marketing. You can reasonably expect that within 6 months you will generate an extra $50k/month in revenue. However, is this profitable for you? And, can you afford to pay $30,000 to get there? Usually if both of these answers are yes, then we can proceed to understand each other.

What you should expect from us? We have a team of experienced marketers will work with you to:

• • Develop a Customized Marketing Plan: We’ll analyze your current marketing efforts, identify areas for improvement, and create a tailored plan that aligns with your budget and objectives.

• • Implement Proven Strategies: We’ll utilize our expertise in SEO, content marketing, social media, and paid advertising to drive targeted traffic to your website and generate qualified leads.

• • Track and Measure Results: We’ll use data-driven insights to monitor the performance of your campaigns, optimize your strategies, and ensure you’re getting the most out of your marketing investment.

If you’re ready to take your digital marketing to the next level and see real results, we’re here to help. Contact us today for a free consultation and let us show you how a comprehensive digital marketing strategy can transform your business.

Remember: Paid ads can be a part of your marketing toolkit, but they shouldn’t be your entire toolbox. Invest in a holistic approach that builds a strong foundation for long-term growth and success.

For further insights, check out these resources:

• • Downstage Media: Are You Wasting Money on Advertising? 10 Ways to Know: https://www.downstage.media/blogindex/wasting-money-ads

• • Neil Patel: You’re Wasting Your Time On Paid Ads: The New Approach: https://www.youtube.com/watch?v=daYmbChzLNs
  • Steven Lockhart on Linkedin.