ad to sales ratio

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It is news to no one in the advertising biz that Google and Facebook receive 60 cents of every dollar spent in online advertising. But when Facebook travels to Cannes in France for the annual awards show and spreads money like drunken sailors, everybody’s senses pick up. Why are Google and Facebook so successful? Because they own the data? Because they own time-online? Because they throw great parties for media buyers? Yeah, a little of all that. But they win in the marketplace because they’re effective advertising mediums.  When an industrial distribution company goes from an ad budget of $300,000 to $1.3 M, most all of which goes to Google AdWords, there has to be a reason. Google AdWords track to sales.

When the ad-to-sales ratio of a Google or Facebook program is calculated and kicks the ass of all other media, why would a sane advertiser not invest there. It’s about sales…it’s about results.

Until other ad mediums deliver the attributable sales of a Facebook or Google we will continue to see this growth trend. It’s not sexy but money never is.

Peace.

 

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