There are 6.9 billion searches on Google every day and Facebook has 1.7 billion daily active users. The tech giants offer their product for free and consumers pay in data. As poignantly argued in a documentary by Netflix, The Social Dilemma, if you don’t pay for the product–you are the product. Naturally, Google and Facebook have emerged to be the two most popular platforms for businesses to market their products and services.
But, is advertising only through Google and Facebook enough for brands?
Here are four reasons why tech giants fall short to achieve all your marketing goals:
Ethnic marketing is an important concept for brands to embrace if they want to drive holistic business growth. Marketing strategies today must include all subcultures beyond the majority audience to be able to resonate with every consumer group. Brands need to shift away from one-size-fits-all messaging and concentrate on crafting culturally relevant messages on platforms that are popular among multicultural audiences. For brands, the diversity is where the opportunity lies.
According to the latest U.S. Census, the South Asian population in the USA is growing the fastest with 29% growth. This fast growing segment is also one of the affluent, having an annual income of over $100,000 the highest of all multicultural groups in the USA.
Per 2019 report by ANA’s Alliance for Inclusive and Multicultural Marketing (AIMM) found that although ethnic consumers make up nearly 40% of the population of the United States, the total advertising spend on multicultural campaigns was only 5.2%.
In recognizing that there are many non-discriminatory uses for ethnic targeting, Google and Facebook have tried to implement a temporary ban before pledging to permanently remove advertisers’ ability to use multicultural affinity groups for any type of advertising.
Every successful marketing strategy has a mix delivered through omnichannel. So, what happens when the giants that gobbles up all your ad spend prohibits advertising to your target audience?
If you have already tried ethnic marketing, you are aware that your customers come from different backgrounds with different goals, lifestyles, and aspirations. They may have preferences towards particular web sources where you could communicate with them. Understanding these different nuances should be the first step towards growing a robust, ethnic marketing campaign.
This brings us to the question, what’s in it for brands and how can they leverage the most affluent and the fastest-growing ethnic group in the USA? Some of our insights pave the way:
Many business leaders of Fortune 500 companies are South Asian by heritage and they are organic trendsetters. For instance, there are social media groups and subreddits that discuss sneakers that the CEO of Microsoft, Satya Nadella dons at various conferences.
Going beyond the stereotypical assumptions and understanding the specifics of the South Asian audience can be the key to marketing success. If you really want to speak to the hearts of your consumer, then you should know what it is like to be in their shoes of the 5.4 million strong, highly educated, and affluent community.
2. Retargeting and Remarketing
Retargeting and remarketing are both lead nurturing tactics and sometimes used interchangeably, the main difference is in the strategy. Retargeting is mostly about serving ads to potential customers while remarketing is based on email.
Retargeting and remarketing are an effective way to achieve higher conversions. This is mainly due to the fact that you are targeting people who have already shown interest in your brand. Put your brand top-of-mind by strategically showing ads to interested audiences and let them into your sales funnel.
Display advertising allows for retargeting and remarketing. If you have a lengthy sales cycle, you need to ensure that your brand stays top-of-mind for prospects as they consider making a purchase. With its other targeting capabilities, retargeting will put your ad in front of people who have previously shown interest, and who could still be considering your business.
The output of data-driven marketing campaigns should be to attain both reach and relevance. In today’s digital ad space, we have information and data overload. The questions you should ask is not how much, but how effective? FrontAd can assist in tailoring specific campaigns and help you reach growth milestones.
3. Increasing Marketing Reach and Relevance
Evolution in digital marketing relies very little on legacy solutions. There is a higher potential for reach and relevance with multicultural segmentation because the digital ecosystem allows cohesive messaging to the right audience.
There is no doubt that Google and Facebook can give you the reach. After all, the population of Google and Facebook netizens combined will be the most populous country. The monetization strategy for both Google and Facebook is to sell advertising to companies. This may also explain why organic posts on Facebook made from business accounts do not deliver the reach. Facebook effectively buries business posts unless it is part of a paid campaign.
Cost Per Click (CPC) refers to the price you pay for each click in your pay-per-click (PPC) advertising campaigns. The average CPC varies widely by industry and business niche. Refer to the average CPC benchmarks for common industries in the infographic below.
Google and Facebook offer recommendations with the help of algorithms and bid series. Let’s say you are a money transfer company and your target audience is largely the immigrant community. To advertise on Google Display Ads, you will be spending $3.72 per click with an average conversion rate of 0.77%. Which translates to about 28 conversions per $3720 spend.Alternatively, you can spend that $3720 on high-traffic websites like Path2USA, Trackitt, and CompareRemit visited by the affluent and educated immigrant community that resonates with your brand. 1 in 3 South Asians with deep pockets visit FrontAd websites every day, ranging from immigration topics to personal finance. FrontAd is more effective in reaching the top 1% of the South Asian demographic than both Google and Facebook combined yet without the costs. FrontAd can show your tailored display ads on its high traffic websites that command views and interactions. A well-tailored piece of content, for example, targeting the right community, with the right amount of the budget can effectively increase reach, relevance, and conversion.
4. In-house Expertise
Data is an obsessive concern for all advertisers. Popular in-house tools are used by advertising agencies are shown below:
In short, agencies have all the data-driven tools needed to give your brand the audience exposure it deserves. Your in-house team can leverage these tools to monitor performance without violating or exploiting the privacy of the consumer.
At FrontAd, we set benchmarks and strive to achieve them. We have the tools and data scientists to track performances and implement corrective strategies during stagnancies. Expert support is offered during all phases of marketing to help you achieve your growth benchmark. In The State of Data 2020 report by Winterberry Group in partnership with the IAB Programmatic+Data Center of Excellence more than a third of advertising budgets were directed towards, “Who is the audience?”
Build a marketing platform around your customers’ needs
Business leaders are demanding to understand how investing in multicultural marketing will move the needle for their business and their audience. We believe it is critical in creating exceptional digital experiences tailored to your affluent and tech savvy South Asian audience. The combination of user data, customized solutions, and a deep understanding of the audience will accelerate engagement, conversion rate, and Return on Investment (ROI) growth.
Google and Facebook can boast of big data, but there is one thing they lack: human consciousness, cultural sensitivity, and creativity. For a unique business, you need a unique strategy. Would you rather rely on an algorithm solely, or a partner that will take a large part of the budget with reduced visibility? Or would you choose a partner who can clearly identify new growth opportunities with an affluent and educated South Asian audience and partner with you to attain measurable outcomes?