Kiwis urged to overcome mistrust of digital advertising

Kiwis urged to overcome mistrust of digital advertising

The best way for New Zealand businesses to counter online ad fraud, and the Kiwi mistrust of digital advertising, is to put in place good website analytics and a strong focus on tracking outcomes like sales, leads and other interactions that are valuable to the business..

CEO of Auckland digital marketing agency Insight Online, Kim Voon, said today that in his experience many New Zealand businesses have an inherent distrust of the blackhole that is digital advertising products, including Google Ads and Facebook advertising.

“Many business owners have become suspicious of digital advertising ever since Proctor and Gamble cut its digital budget by $US100 million because they weren’t seeing the results,” Voon said.

“This was followed by news that clicks automatically generated by bots could reach $US50 billion by 2025, and then offers by Google to refund it’s platform fee after revelations that fake traffic was costing advertising.”

Voon said many potential clients want to know how can they trust the metrics they’re given because the metrics are provided by the platforms, like Facebook and Google, which are making the money – so there is a vested interest there.

He offers the following three tips to marketing managers who are questioning their digital ad spend:

1. Sales over impressions

Inquiries, downloads or calls are the true measure.

“The acid test is whether you’re getting leads and sales or not,” Voon said. “You don’t have to believe the impressions, or the clicks, but if you’re getting leads and the leads are turning into money, then there’s return-on-investment (ROI).

“If you’re not seeing sales or leads, and you’re not tracking any form of conversion, it is hard to justify spending money on the digital advertising medium. Most search marketing agencies are very heavily biased towards ROI. Personally we have a high level of distrust with claims that impressions are great – we would prefer outcomes that are completed online such as inquiries, downloads or calls.”

2. Implement an online conversion model

Voon said all marketing managers that are advertising should have a conversion model in place, which is essentially a process that invites engagement – whether a phone call or downloading an eBook, for example.

“You don't need to trust the platforms if you’re getting phone numbers, contact details and leads in your CRM. Too many people are fiddling with Facebook and Google Ads and concerned about impressions – that’s not using those channels correctly; it’s fluffy and it doesn’t work.

“A conversion model is a measure of customer intent. People say people aren’t downloading eBooks anymore, but that’s nonsense. If your customer is serious about their purchase decision, they are happy to engage with the business,” Voon said.

3. Choose your platform wisely

Voon said Facebook is very strong in New Zealand, as are Google Ads, but less so LinkedIn when it comes to paid services (LinkedIn is expensive).

“Facebook is very strong in New Zealand because the targeting is amazing. Advertisers can be very specific in their targeting, and the lead generation that comes off it – particularly if you have some sort of online fulfilment– can be the cheapest cost per lead channel.

“Make it a point to capture emails and phone numbers (or sales of course), which helps eliminate tyre kickers. The point is not to get everyone. The goal is to very specifically target your audience and get only the people you want,” Voon said.

Ends.

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