How might businesses adjust their sales strategies in response to rising online ad costs?

Businesses might adjust their sales strategies in response to rising online ad costs by diversifying their advertising platforms to include more cost-effective options, such as TikTok or Twitter. They could also focus on improving their ad targeting to ensure they're reaching the most relevant audience, thus getting the most value from their ad spend. Additionally, businesses could invest in organic marketing strategies, such as content marketing or SEO, to reduce their reliance on paid advertising.

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Since the pandemic accelerated online spending to $26.7 trillion in 2020, the average starting cost of 1000 impressions for a Facebook ad went up with it. For example, the average starting CPM in 2019 was around $5.12, but by May 2020, it had risen to $7.19. In October of 2021, Facebook's average CPM is $11. Now compare that to TikTok, which brings in $1.3 billion in annual ad sales. In 2020, Facebook generated around $84 billion. In fact, for every one dollar per user TikTok makes, Twitter makes five, YouTube makes seven, and Facebook and Instagram make nine.

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Sales Strategies Toolkit

Does your team need better ways to close leads? Don’t miss your sales targets due to misqualified leads or poor sales controls. Extract from our compi...

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