The flood of money into digital advertising is having an effect. The price to advertise and achieve results is starting to climb.
Digital is thought to be an inexpensive alternative to other forms of marketing, yet the price per action, as reported by Wordstream, is rapidly climbing.
Just to get a click costs more, especially for legal terms. This area is now averaging $6.35 per click (search network). Health is $3.13 per click, and finance is $3.56 per click. The average across all industries is $2.41 per click on the search network and $0.59 on the Google display network.
Clicks are great, but actions, conversions and sales are more important. The average cost per action (CPA) across all industries is $56.11 on search and $90.80 on the display network. More emphasis needs to be placed on optimizing your digital spend and optimizing your digital creative. According to Wordstream, “In many of these cases, the best converting advertisers aren’t afraid to change their offer or their conversion flow to boost their conversion rates. Or they may be taking advantage of conversion-boosting tactics, such as video landing pages.”
The costs are rising. Our optimization of creative and media buying needs to rise to meet the challenge.