Why is digital advertising getting harder?

Digital marketers are struggling with results when they look at their advertising budgets, according to a recent report from Databox. More than 4 in 10 SMBs and over half of the agencies say performance from Facebook advertising either stayed the same or performed worse over the past year. Almost the same numbers reported diminished performance for at least two consecutive years.

Despite this, more than 60% of companies increased ad budgets on Facebook in 2022, and more than half of companies expect to spend even more in 2023. SMB and large enterprise digital marketers report increased pressure for results over the past two years, even as they acknowledge spending more to keep pace with prior results.

Most digital marketers focus their spending on ads instead of promoted posts, and nearly 2/3 prioritize nurturing their Business Page and Events over boosting posts.

Beyond the chart: Over the past two years, we have noted a marked shift in spending preference for Ads over Boosts. Around the world, 63% of digital marketers say this is due to ad spend performance. Interestingly, a gap in the target metric measuring performance exists between agencies, SMB marketers, and corporate marketers.

SMBs measure performance according to brand awareness improvements. More prominent corporate marketers and agencies focus on conversions or lead generation as their core performance metric. So while everyone looks at ROAS (return on ad spend), their overall performance varies based on their choice of measurement metric.

About Lifetoken: Lifetoken takes creators and brands from impressions to actions. Digital marketing today is driven by impressions. $200 billion a year is spent to get those impressions. Creators and brands now realize impressions don’t connect with actions. Lifetoken bridges that gap. To fans and followers, it’s social and fun. To brands and creators, its audience management done right. Learn more about Lifetoken at lifetoken.ai.