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  • Writer's pictureDeJuan Wright

Banner Ads Won't Generate Sales For Your Startup—But This Will

Updated: May 22, 2023

Oftentimes, CMOs of both large and small companies find themselves taking certain actions solely due to the fact that either things have always done things that way in the past; or simply because others are currently doing it and it’s industry standard. However, the underlying cause for taking either one of those actions boils down to one thing—safety.

That’s because according to a study from executive search firm Spencer Stuart, the average chief marketing officers’ tenure in their post at 100 of the top ad-spending brands in the United States is 40 months.

Well aware of the transience of their job title, many CMOs make marketing decisions for their respective companies—not necessarily to scale as soon as possible—but rather to avoid taking risks that could expedite their inevitable dismissal. Hence the reason why most CMOs have erred on the side of caution instead of chance.

One particular action taken by many CMOs and marketing managers has been a mistake, yet, an industry standard for just about every business. That mistake is paying to advertise their brand's products or services via banners on websites to generate sales. Here’s why that is now a very costly mistake your startup should avoid and what it should be doing instead.

Why banner ads cost more money than they are worth

Sure, there are 5.18 billion internet users worldwide. That means there’s potentially 5.18 billion people that could be exposed to banner ads on the web pages they visit. Sounds great, doesn’t it? But when you really start to peel back the layers of the onion that is banner advertising—the results could make you cry (especially if you’re the one that’s footing the bill for them).

With a click-through rate of only 0.1%, banner advertisements are almost guaranteed to be ignored by everyone who comes across them.

“Because online advertising is also the most ignored advertising ever created. It’s not unusual to run an ad in front of a hundred thousand people and not get a single click.” Writes author Seth Godin, in his best-selling book This Is Marketing. “Advertising is unearned media. It’s bought and paid for. And the people you seek to reach know it. They’re suspicious. They’re inundated. They’re exhausted.”

Are most CMOs and marketing managers privy to the failure rate of banner ads and the fact that 99.9% of consumers find them annoying? Absolutely! But they continue to do so because despite the failure rate—purchasing placements for banner ads has been the norm in most industries since the prevalence of the internet. Which makes them safe—supposedly.

What does generate sales

Instead of investing in banner ads, maximize your marketing budget by doubling down on a more focused form of digital marketing that is far more likely to generate sales revenue for your startup—personalized and segmented Email marketing.

According to the Data & Marketing Association (formerly the Direct Marketing Association), for every $1 that a business spends on Email marketing, the average return on investment is $44. Which means Email marketing yields an average 4,300% ROI for businesses in the United States.

Not just that, studies show that Emails sent to customers from brands that focus on personalization and segmentation receive an additional 15% more clicks than the average Email does. And also improves conversion rates by 10%.

Making it one of the surest ways to generate sales revenue for your startup.

Let’s discuss your digital marketing strategy

A well-orchestrated digital marketing strategy could generate sales revenue that’ll rapidly scale your startup. At Decryption, we understand that every dollar that your startup spends towards marketing needs to yield a return.

Contact us to schedule a call to become a Decryption client and together—we’ll create an ideal digital marketing strategy that’ll help take your startup to the next level.


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