This article was based on the interview with Austin Fredrich from The Office of Experience by Greg Kihlström for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
Benchmarks and audience size matter when it comes to advertising campaigns. These factors play a crucial role in determining the success and effectiveness of a campaign. Advertisers need to have a clear understanding of these benchmarks and the size of their target audience in order to allocate their resources effectively and maximize their return on investment and return on advertising spend, or ROAS.
One important benchmark to consider is the cost of delivering impressions. Different types of campaigns have different objectives, and as a result, they require different levels of investment. For example, a demand generation campaign that aims to drive conversions will typically cost more to deliver impressions compared to a campaign focused on creating awareness. By knowing these benchmarks, advertisers can determine how much they need to spend in order to achieve their desired results.
Another factor to consider is the size of the target audience. It is important to understand how many people need to be reached in order to drive the desired results. For awareness campaigns, it is generally recommended to target a broader audience and aim for about 30% of the audience to hear the message at least once a week. This helps to ensure that the campaign reaches a sufficient number of people and maintains its effectiveness.
Once a campaign is running, it is important to monitor its performance and make adjustments as needed. One key metric to keep an eye on is frequency, which refers to the number of times a person sees an ad over a given time period. If an audience member sees an advertisement too many times, they can become blind to it and ignore it. This can lead to wasted impressions and decreased effectiveness. Different platforms have different optimal frequency levels, so it is important to tailor the frequency accordingly. For example, on standard display ads, it is recommended to max out at around 7 to 10 ads per week per person, while for social media ads, it is recommended to limit it to around two per week.
In addition to benchmarks and frequency, audience segmentation is another important aspect to consider. In the past, there was a focus on highly segmented audiences, targeting specific individuals with ads. However, this approach has its limitations. Extremely small audiences can struggle to convert due to inaccurate data and the requirement for the target to use the platform. It is important to find a balance between broad and narrow audience segments. While narrow segments allow for more targeted messaging, broad segments ensure that a larger pool of potential customers is reached. It is important to consider the limitations and potential missed opportunities when targeting extremely small audiences.
Benchmarks and audience size matter in advertising campaigns. Advertisers need to have a clear understanding of industry benchmarks and the size of their target audience in order to allocate their resources effectively and optimize their campaigns. Monitoring performance metrics, such as frequency, and adjusting accordingly can help ensure that the campaign remains effective and avoids wasted impressions. Finding the right balance between broad and narrow audience segments is also important to maximize reach and conversion potential. By considering these factors, advertisers can create successful, scalable, and sustainable campaigns.
