{"id":80945,"date":"2023-01-16T17:32:28","date_gmt":"2023-01-16T22:32:28","guid":{"rendered":"https:\/\/marketinginsidergroup.com\/uncategorized\/digital-ads-dont-work-and-everyone-knows-it\/"},"modified":"2023-09-14T05:58:26","modified_gmt":"2023-09-14T09:58:26","slug":"digital-ads-dont-work-and-everyone-knows-it","status":"publish","type":"post","link":"https:\/\/marketinginsidergroup.com\/marketing-strategy\/digital-ads-dont-work-and-everyone-knows-it\/","title":{"rendered":"Digital Ads Don\u2019t Work And Everyone Knows It"},"content":{"rendered":"<p><em><strong>Does Online Advertising Work?<\/strong><\/em><\/p>\n<p>By the title of this article, I&#8217;m sure you can guess our short answer is no. We just covered how <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/display-advertising-broken-agency-ceo\/\">CEOs don&#8217;t think it works<\/a>. During the pandemic, brands like P&amp;G, Chase Bank, and Uber slashed their ad budgets and saw exactly ZERO impact on their sales revenue.<\/p>\n<p>Now we&#8217;re seeing the same thing happen again as ad sales plummet, advertising budgets shrink, and marketers are bring asked to focus on <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/how-to-define-and-measure-the-roi-of-content-marketing\/\">marketing that actually works<\/a>.<\/p>\n<p>Here&#8217;s a few more stats to show that digital ads don&#8217;t work:<\/p>\n<ul>\n<li><a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/marketers-frustrated-with-digital-advertising-roi\/\">89% of marketers<\/a> don&#8217;t think digital ads work<\/li>\n<li>36% of the clicks on paid ads are fraudulent. (Search Engine Journal)<\/li>\n<li>Venture capital investment in ad tech is declining by an average of 10% each of the last 5 years.<\/li>\n<li>Even CEOs from the most recognized brands know that digital ads are a <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/ceos-will-no-longer-accept-marketing-doesnt-work\/\" target=\"_blank\" rel=\"noopener noreferrer\">waste money<\/a>.<\/li>\n<li>Businesses big and small from all sectors don\u2019t see any lost sales after they stop spending money on ads.<\/li>\n<\/ul>\n<p>And yet, business spending on digital ads is still projected to increase by 10% this year.<\/p>\n<p>Most people think <a href=\"https:\/\/marketinginsidergroup.com\/strategy\/what-is-marketing\/\">marketing is just people buying ads<\/a>. Google, Facebook, and other social media platforms only exist because they convinced brands to spend money on &#8220;highly targeted&#8221; ads based on our behavior, demographics, or interests. That&#8217;s creepy!<\/p>\n<p>But they must work, right? Cumulatively, brands spend<em> more than $300 billion<\/em> on digital ads each year!<\/p>\n<p>The truth is, most marketers are simply lining the pockets of big ad tech execs, paying for bot traffic, and delivering no measurable revenue from ad spend.<\/p>\n<p><em><strong>Quick Takeaways:<\/strong><\/em><\/p>\n<ul>\n<li><em><strong>Digital ads don&#8217;t work!<\/strong><\/em> And we have the data to prove it.<\/li>\n<li>When brands slash their PPC and banner ad budgets, they notice paid traffic drops but sales are unchanged.<\/li>\n<li>Venture capital is fleeing ad tech, seeking more sustainable solutions.<\/li>\n<li>Our clients spend just 5% of their ad budget on <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/why-content-marketing-beats-advertising-almost-every-time\/\">Content marketing<\/a> but see 7x ROI on average.<\/li>\n<\/ul>\n<p><strong> <\/strong><em><strong> PS &#8211; I put together these 10 tips for optimizing your content marketing. <a href=\"https:\/\/go.marketinginsidergroup.com\/tips_workshop?\/utm_source=link\">Watch Now!<\/a><\/strong><\/em><\/p>\n<h2>Do Digital Ads Work? Not For Most Businesses!<\/h2>\n<p>Digital ads don\u2019t work. They\u2019re the definition of a money pit. A swindle. A grift.<\/p>\n<p>According to <a href=\"https:\/\/www.wordstream.com\/blog\/ws\/2014\/03\/17\/what-is-a-good-conversion-rate\" target=\"_blank\" rel=\"noopener noreferrer\">WordStream&#8217;s<\/a> analysis of $3 billion in annual PPC ad spend, the average click through rate is 2.35%. More than 90% of those clicks bounce. So $3 billion gets you a 0.2% chance of finding a new warm lead.<\/p>\n<p>Multiply that by the <a href=\"https:\/\/marketinginsidergroup.com\/demand-generation\/are-your-lead-conversion-rates-above-average\/\">average conversion rate<\/a> for most leads and you get exactly ZERO new customers. On average. (Yeah I know some companies are better than this. And some products are more likely to work.)<\/p>\n<p>What about banner ads? Well, <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/banners-99-problems\/\">banners have 99 problems<\/a> but a click ain&#8217;t one. The average click through rate on this fun little marketing curse is 0.06%.<\/p>\n<p>Oh, those are just for generating awareness? Good luck with that! No wonder <a href=\"https:\/\/marketinginsidergroup.com\/marketing-strategy\/your-director-of-marketing-is-miserable-unless-they-focus-on-customers\/\">most marketers are miserable<\/a>!<\/p>\n<h3>Digital Ads Might Be the Next Financial Bubble to Burst<\/h3>\n<p><a href=\"https:\/\/www.emarketer.com\/content\/global-digital-ad-spending-update-q2-2020\" target=\"_blank\" rel=\"noopener noreferrer\">eMarketer<\/a> estimates worldwide digital ad spending sits at $441 Billion and projects that figure to grow to $526 billion by 2024.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"size-large wp-image-659575 aligncenter\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/emarketer-ad-spend-874x1024.jpg\"  alt=\"Emarketer Ad Spend 874x1024\" width=\"604\" height=\"708\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.emarketer.com\/content\/global-digital-ad-spending-update-q2-2020\" target=\"_blank\" rel=\"noopener noreferrer\">eMarketer<\/a><\/p>\n<p>Sounds promising for the digital ad industry!\u00a0Not quite. Look at that dwindling growth rate\u2014during the pandemic, it dropped to just 2.4% when brands halted all their costliest marketing tactics.<\/p>\n<p><a href=\"https:\/\/www.wired.com\/story\/ad-tech-could-be-the-next-internet-bubble\/\" target=\"_blank\" rel=\"noopener noreferrer\">Wired<\/a> ran a groundbreaking piece less than 2 years ago with a pertinent subtitle to drive home the point that didn\u2019t get nearly enough attention (wonder why):<\/p>\n<p><img decoding=\"async\" class=\"size-large wp-image-659570 aligncenter\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/ad-bubble-1024x638.jpg\"  alt=\"Ad Bubble 1024x638\" width=\"604\" height=\"376\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.wired.com\/story\/ad-tech-could-be-the-next-internet-bubble\/\" target=\"_blank\" rel=\"noopener noreferrer\">Wired<\/a><\/p>\n<p>It points out that micro-targeted ads are far less accurate and persuasive than they\u2019re advertised.<\/p>\n<p>Plus, the metrics are less-than-transparent for brands like you, yet this is how Google makes 80% of its revenue and Facebook 99%: an average<strong> 60% of all digital ad revenue.<\/strong><\/p>\n<p>Wired\u2019s writers even compare the inevitable implosion to the 2000 mortgage crisis. Think they\u2019re being facetious? Well, consider that the entire industry of tech giants has built an empire off free apps by collecting the data to sell you ads.<\/p>\n<p>  <strong>PS &#8211; Check out our <a href=\"https:\/\/marketinginsidergroup.com\/content-builder-services\/\">weekly blog content service<\/a> to grow your website traffic and leads!<\/strong><\/p>\n<h3>Brands Realized Paid Digital Ads Don\u2019t Work<\/h3>\n<p>Brands big and small cut the ad spigot in response to the pandemic\u2019s uncertainty, and guess what? <em>Nothing<\/em> changed.<\/p>\n<p>P&amp;G turned off $200 million, Chase slashed ad reach by 99%, Uber turned off $120 million in ads for app installs\u2014<a href=\"https:\/\/www.forbes.com\/sites\/augustinefou\/2021\/01\/02\/when-big-brands-stopped-spending-on-digital-ads-nothing-happened-why\/?sh=24b83e9b1166\" target=\"_blank\" rel=\"noopener noreferrer\">not one business<\/a> noticed a change in outcomes.<\/p>\n<p>Going back further, that\u2019s the norm since shortly after ads emerged when eBay ended their paid search spending in 2012.<\/p>\n<p>Yep, paid digital micro-targeted ads are just a big house of cards.<\/p>\n<p>Even small businesses who reported a decline of 90% in ad spend saw little to no change in sales revenue.<\/p>\n<h3>Bots Drive Up Your Ad Spend More Than You Think<\/h3>\n<p>Goggle admits it right away (although I\u2019m not sure who\u2019s behind this embedded instant stat):<\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-659571 aligncenter\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/bot-traffic.jpg\"  alt=\"Bot Traffic\" width=\"845\" height=\"214\" \/><\/p>\n<p><a href=\"https:\/\/www.searchenginejournal.com\/clickcease-how-much-ppc-fraud-costing-your-business\/357328\/\" target=\"_blank\" rel=\"noopener noreferrer\">Search Engine Journal<\/a> tells us each brand should expect \u201cfraudulent\u201d clicks to consume 20% of all paid ad clicks\u2014in other words, bots.<\/p>\n<p>But then again, the <a href=\"https:\/\/thenextweb.com\/security\/2019\/04\/17\/bots-drove-nearly-40-of-internet-traffic-last-year-and-the-naughty-ones-are-getting-smarter\/\" target=\"_blank\" rel=\"noopener noreferrer\">latest estimates<\/a>\u00a0tell us nearly 40% of all internet traffic is just bots, both \u201cgood\u201d and \u201cbad.\u201d<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-659572 aligncenter\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/bot-traffic1.jpg\"  alt=\"Bot Traffic1\" width=\"928\" height=\"421\" \/><\/p>\n<h3>Venture Capital Flees Ad Tech Quietly<\/h3>\n<p>Don\u2019t get left in the aftermath of capital flight. Today\u2019s capital flight looks much different than 1980s Detroit. Now, it happens internationally across entire sectors\u2014like ad tech.<\/p>\n<p><a href=\"https:\/\/www.adweek.com\/programmatic\/investment-in-ad-tech-grows-increasingly-scarce-with-forrester-predicting-a-75-drop-in-venture-capital\/\" target=\"_blank\" rel=\"noopener noreferrer\">Adweek quoted<\/a> a Forrester report predicting venture capital would scatter from ad tech within the next few years. And looking at the latest stats from <a href=\"https:\/\/techcrunch.com\/2020\/01\/22\/where-top-vcs-are-investing-in-adtech-martech\/\" target=\"_blank\" rel=\"noopener noreferrer\">Crunchbase<\/a>, venture capital has fled from ad tech deals at a roughly 10% compounded annual rate over <em>the last five years.<\/em><\/p>\n<p>Not good.<\/p>\n<p><strong>  PS &#8211; Check out our <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/how-a-tech-media-agency-earned-2-3x-the-inbound-leads-with-migs-content-services\/\">latest case study<\/a> that shows how we helped one company double their leads!<\/strong><\/p>\n<h2>If Digital Ads Don\u2019t Work, What\u2019s Next?<\/h2>\n<p>Look, you\u2019ve already made it this far\u2014likely from literally asking yourself and Googling \u201cdo digital ads work?\u201d Deep down, you know the jig is up, but what replaces them?<\/p>\n<p>First, acknowledge you won\u2019t miss anything by slashing your paid digital ad budget. Get over the FOMO because the ROI never existed and it won\u2019t magically appear no matter how you tweak.<\/p>\n<p>After starting my career in sales, I moved into marketing vowing to only work on things that can show measurable value. I never worked on a branding campaign. I never re-designed a logo. I mainly focused on creating helpful content for customers, knowing that would attract them to my business.<\/p>\n<p>It&#8217;s what we now call <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/what-is-content-marketing\/\">Content marketing<\/a>. You don&#8217;t have to pay for organic search clicks to your own site. But a small investment in strategic content (our average clients spends just 5% of what they spend on ads), can produce a <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/compounding-power-of-content-marketing\/\">compounding rate of return<\/a>.<\/p>\n<h3>Replace Your Digital Ad Budget with Content Marketing<\/h3>\n<p>Because content marketing works for even the &#8220;least successful&#8221; content marketers.<\/p>\n<p>41% of even the low-performing content marketers surveyed said their content marketing successfully generates leads and ROI, compared to almost two-thirds for B2Bs with the best content:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-659573 aligncenter\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/content-marketing-strategy-1024x414.jpg\"  alt=\"Content Marketing Strategy 1024x414\" width=\"604\" height=\"244\" \/><\/p>\n<p>Now, look at the massive gap between high- and low-performers <a href=\"https:\/\/contentmarketinginstitute.com\/wp-content\/uploads\/2019\/10\/2020_B2B_Research_Final.pdf\" class=\"broken_link\">as of last year.<\/a><\/p>\n<p>Meanwhile, 29% of the low-performers said their content marketing generated sales and revenue, compared to three-quarters of high-performers.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-659574 aligncenter\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/content-marketing-strategy1-1024x510.jpg\"  alt=\"Content Marketing Strategy1 1024x510\" width=\"604\" height=\"301\" \/><\/p>\n<p>It\u2019s obvious from these stats and <a href=\"https:\/\/marketinginsidergroup.com\/marketing-strategy\/marketing-trends\/\">trends in Digital Marketing<\/a> that businesses are investing more time, energy, and resources into their content marketing because they understand its value. They get that digital ads don\u2019t work and they need a real solution.<\/p>\n<h3>Not Just Any Content Marketing Will Do<\/h3>\n<p>I get it. Digital ads are appealing because they look highly targeted, and the &#8220;clicks&#8221; start flowing in right away. But it\u2019s all a charade. Content marketing is genuinely targeted because it uses <a href=\"https:\/\/marketinginsidergroup.com\/marketing-strategy\/why-cmos-must-master-empathy-now\/\">empathy<\/a> and <a href=\"https:\/\/marketinginsidergroup.com\/strategy\/brand-storytelling-defined\/\">brand storytelling<\/a>\u2014 but also <a href=\"https:\/\/marketinginsidergroup.com\/content-marketing\/10-examples-prove-content-marketing-roi\/\" target=\"_blank\" rel=\"noopener noreferrer\">delivers traceable ROI.<\/a><\/p>\n<p>Ads don\u2019t work because potential customers don\u2019t click them. Bots do. In fact, a quarter of people use ad blockers, so you\u2019re <a href=\"https:\/\/www.youtube.com\/watch?v=TlxpQVesFA8\" target=\"_blank\" rel=\"noopener noreferrer\">already doomed<\/a>. (Sorry if this video forces you to watch an ad!!!)<\/p>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/TlxpQVesFA8\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Customers do, however, click organic search results targeted to their query, pain point, and interest.<\/p>\n<p>What are you more likely to click for help building your <a href=\"https:\/\/marketinginsidergroup.com\/social-media\/why-social-media-isnt-enough-to-drive-your-business-growth\/\">social media strategy<\/a>\u2026<\/p>\n<p>\u2026one of these useful blogs from an authoritative site?<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-659598 size-large\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/Screen-Shot-2021-02-19-at-11.02.56-AM-1024x739.png\"  alt=\"Screen Shot 2021 02 19 At 11.02.56 AM 1024x739\" width=\"604\" height=\"436\" \/><\/p>\n<p>\u2026maybe one of these interesting scholarly articles?<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-659597 size-large\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/Screen-Shot-2021-02-19-at-11.04.16-AM-1024x723.png\"  alt=\"Screen Shot 2021 02 19 At 11.04.16 AM 1024x723\" width=\"604\" height=\"426\" \/><\/p>\n<p>\u2026or one of these annoying paid ads?<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-659596 size-large\" src=\"https:\/\/marketinginsidergroup.com\/wp-content\/uploads\/2023\/09\/Screen-Shot-2021-02-19-at-11.10.08-AM-1024x469.png\"  alt=\"Screen Shot 2021 02 19 At 11.10.08 AM 1024x469\" width=\"604\" height=\"277\" \/><\/p>\n<p>The choice is obvious. It\u2019s clear content marketing delivers trackable results and digital ads don\u2019t work. Trust me, you won\u2019t miss them when they\u2019re gone.<\/p>\n<h2>Admit Digital Ads Don\u2019t Work and Start Building Your Content<\/h2>\n<p>Hopefully by now you\u2019re ready to stop living in denial, admitting to yourself and your brand that digital ads don\u2019t work.<\/p>\n<p>Digital ads just don\u2019t deliver any real revenue\u2014they cost a literal <em>fortune<\/em>, and soon, the whole operation will implode. So, will you be holding the bag?<\/p>\n<p>Make 2023 the year you go all-in on content: blogs, eBooks, videos, infographics. You can still create targeted content to reach your audience. Content is simply more sustainable and delivers better revenue.<\/p>\n<p>Which has produced more ROI for you so far this year? Don\u2019t make excuses for Google to keep taking your marketing budget. Make the switch to content.<\/p>\n<p><strong><em>Take the first step now and browse<\/em> <em><a href=\"https:\/\/marketinginsidergroup.com\/content-builder-services-2\/\" target=\"_blank\" rel=\"noopener noreferrer\">Content Builder Services<\/a><\/em><em> to see how can help your brand deliver 7x ROI and 138% YoY organic search traffic. Can your digital ads do that?<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does Online Advertising Work? By the title of this article, I&#8217;m sure you can guess our short answer is no. We just covered how CEOs don&#8217;t think it works. During the pandemic, brands like P&amp;G, Chase Bank, and Uber slashed their ad budgets and saw exactly ZERO impact on their sales revenue. Now we&#8217;re seeing [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":80956,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[18],"tags":[],"class_list":["post-80945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing-strategy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.3.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Digital Ads Don\u2019t Work and Soon, the Fa\u00e7ade Will Implode<\/title>\n<meta name=\"description\" content=\"Do digital ads work? Most brands notice no sales drop when they stop spending. 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