How to do Digital Advertising Profitably?

Whether your business model is online or offline, direct to consumer or business to business, profit-based or revenue-based, in this day and age you can do advertising profitably.

How? — With 3rd grade math and right message.

Let’s have a look at what a Direct Response Marketing Strategist, Dan Kennedy, has to say about the topic in his book No BS Direct Marketing.

Results Marketing Triangle

A ‘Message’ to deliver, a ‘Media’ to deliver it and a ‘Market’ to receive and respond to it.

There are several ways to fail this model and only one way to get it right – right message, right media and right market!

In today’s digital advertising landscape ‘Media’ has already been figured out for you. Facebook, LinkedIn, Twitter, Google etc. – depending on your budget and marketing requirements.

Given the power and popularity of the brave new media, any possible ‘Market’ you can think of probably exists on either all or one of these digital platforms.

The immense database allows advertising technology to become increasingly sophisticated with its targeting capabilities – reaching out to the right market is only a matter of learning how to use the tools within these platforms.

Getting the Message Right

The only component that’s difficult to get right is the ‘Message’.

Depending on the psychology of what motivates people – either their pain points or hopes and desires. Good copy always nails down what people want to buy into.

It can reward handsomely if you get the message right, but failure to do so can cause a waste of money without getting any sales, leads or revenue.

Simple Math

Another thing that must also be considered is the online economics and 3rd-grade math.

The formula for guaranteed profitability is simple enough: Total Cost Per Acquisition must be lower than the Total Average Order Value (Total CPA < Total AOV).

That’s not enough though if you want to get $2 return on every $1 you spend.

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