2017-02-08 00:00:00 Marketing a Business English Testing online ads is one way that small businesses can increase revenues and lower costs by getting the best return on their marketing... https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Woman-at-table-with-photos-analyzes-advertising-strategies-with-laptop.jpg https://quickbooks.intuit.com/ca/resources/marketing/inexpensively-test-and-advertising/ Inexpensively Test Advertising and Marketing

Inexpensively Test Advertising and Marketing

2 min read

Testing advertising and sales copy before investing significant sums of money will help you get better returns on your marketing budget and valuable feedback from potential customers. This is possible due to the internet and the tools offered by major advertising platforms. You can scale up effective ads, or you can nix or tweak ineffective ads. This type of incremental rapid approach to marketing can simultaneously lead to increased revenues while reducing costs. Many small businesses take this concept to the next level by testing ads to gauge whether there is demand even prior to product development. If the ads are not generating interest, they adjust course or reorient the product to respond to the market. This leads to an increased focus on what is driving profits while reducing the time, energy, and money they spend on unprofitable activities. Testing your ads can be beneficial whether you are a budding entrepreneur with only an idea or an established business with many different products.

A/B Testing

Testing ads before launching a major online marketing campaign is valuable because it can lead to improvements in the ads’ performance and yield insight into how the market feels about your product or idea. A/B testing is the simplest and most ubiquitous method; it basically entails running two separate advertisements using different sales copy, images, websites, or landing pages. You can even test different versions of the product and various price points to find the optimal outcome. Select which approach works best based on the data. You can repeat this process to test out new ideas and improve upon ads. A/B testing is a cheap way to determine where to invest your resources. It is also scientific in that it is repeatable, based on random sampling, and it gives clear data on what works better depending on your goal. In essence, it reduces human bias in favor of an objectively tested outcome.

Low Cost of Online Advertising

Besides being effective, testing ads is efficient. You can set up advertising campaigns on search engines or social media sites for as little as $5 per day. This is much cheaper than hiring a consultant or a market testing firm, while getting feedback from prospective customers on your advertisement and product. Prior to the internet, it would take months and hundreds of thousands of dollars to get this sort of feedback. Nowadays, it takes a couple of days and less than $100 to get similar feedback. This is a revolutionary concept for small businesses and flattens the playing field between you and your competitors. A small online advertising budget delivers benefits such as brand recognition and increased traffic. Another important outcome is detailed analytics, the data that shows how your potential customers are engaging with your ad and your website. Some of the most common analytics to review include revenue, conversions, email captures, time spent on the website, and social engagement. These analytics reveal what parts of your online presence are holding you back and what is working. You can combine this with routine A/B testing to ensure that any changes are leading to better results.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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