Jun 25
Get Ahead Of The Upcoming Recession With Paid Advertising
We all know the horrible statistics about business failure rates, most second-rate business coaches and accountants will happily rattle them off to you.
Yet, most can’t tell you WHY 95% of businesses fail in the first 10 years.
It comes down to one key factor.
The businesses that don’t survive and thrive could not predictably and profitably generate new business.
Meaning they had no controllable way to grow month in and month out.
Truthfully, it’s never been easier and yet harder at the same time to get clients for your business.
If COVID taught entrepreneurs anything, it’s that you need diversity of client acquisition systems and you must be able to generate clients regardless of the economic environment.
This brings me to my next point.
During a downturn wealth doesn’t evaporate, it changes hands.
It transfers from inefficient and defunct businesses into the hands of those poised to take it and use it to push the world forward.
Right now, you have a very limited window of opportunity to understand, learn, implement and master the science and art of profitable client acquisition with paid advertising.
Which in our opinion is the holy grail of running a successful business.
When you can profitably and predictably generate new business on autopilot, you have a real business.
Everything else is simply a hobby that pays you money, destined to fail.
The sooner you believe this, the faster you will grow.
We aren’t saying you need to spend the next decade building an organic following either… that would help, but you don’t need it.
Our personal opinion is that as a global economy, we have a couple of good years ahead of us, before we head into a long winter, of global recession and depression.
So please do your family, staff and clients a favour and leverage our shared time in the sunshine over the next 24–48 months and grow your business whilst the sunshine lasts.
You must prepare yourself for what is coming.
As Tony Robbins says ‘losers react, leaders anticipate’ — don’t be a loser, be a leader and arm yourself with the correct information.
Every minute more and more users are flocking to social media, from their devices.
In 2021, there were 4.48 billion people actively using social media in the world, and this is an increase of 13.13% year on year from 3.69 billion in 2020. Back in 2015, there were only 2.07 billion users — that’s an overall increase in users of 115.59% in just six years.
Basically, everyone with a phone is using social media, well over half the global population, and in the developed economies, up to 80% of the population is using social media on a daily basis.
The average daily use time globally of social media is a staggering 2 hours and 27 minutes, which is 15% of the amount of time the average human is awake per day.
As we are seeing the constant rise in the use of social media globally, so too are we seeing the reduction in organic reach of these platforms as they all switch to a pay-to-play model.
The average reach of an organic post on a Facebook Page hovers around 5.20%. That means roughly one in every 19 fans sees the page’s non-promoted content.
More and more brands have woken up to the fact, if you want your audience to see your content, you need to promote it with paid advertising.
According to Statista, the global spend on advertising in 2024 is predicted to be USD $645.8 Billion.
People don’t invest USD $645.8 Billion into things that don’t work, in fact, business owners invest in paid advertising because they understand the best return on capital invested they can achieve is not in stocks, bonds, property or cryptocurrency but by investing in their own business via paid advertising to generate new leads, sales appointments and clients.
Going Short Form Video
Social media advertising is shifting rapidly towards short-form videos now representing 34% of the total social media advertising spend in the United States. We expect this trend to continue, as users’ attention span drops, advertisers must learn to capture attention and quickly convey their message.
According to Hubspot latest report 80+ Essential Social Media Marketing Statistics for 2022
The Big 4 Platforms To Jump On
We believe the big four platforms you must be on to get your message across the board at Facebook (Meta), Instagram, TikTok and Facebook Messenger.
We also love the Google Platform with search and YouTube (especially for remarketing) and we will cover them in another Money Up Time Down article.
Facebook is the world’s third-most downloaded app and Facebook ads reach an impressive 67% of all Americans over the age of 13. Over 1 billion Facebook stories are shared daily.
Facebook is a giant ad platform, we believe you will find high-quality traffic on Facebook.
Instagram stats
Instagram’s ad reach is skyrocketing past Facebook’s right now. Facebook’s global advertising reach only increased by 6.5% this year, while Instagram’s grew by 20.5%.
Instagram is the second most downloaded app in the world.
We love the Instagram platform for paid advertising and have seen impressive conversion rates by leveraging reels and stories ads. If you’re not on this train, get on it now before it completely runs away.
TikTok was the most downloaded app of 2021, with 656 million downloads. Tiktok has grown by an impressive 105% in the United States over the last two years. We believe TikTok is the platform of the future and the statistics agree.
We are seeing a significantly lower cost per thousand impressions (CPM)s on the TikTok network when compared to Facebook and Instagram.
Their ad platform is still young, yet their algorithm continues to impress our team. Don’t sleep on TikTok, it represents the opportunity of our lifetimes to generate sales appointments for a ridiculously affordable investment.
Simply take your highest-performing campaigns on Facebook and Instagram and test them over on TikTok.
Facebook Messenger is used by over 2.4 billion people worldwide monthly. Making it one of the world's top 7 social media platforms on its own. Yet only 7 million businesses worldwide are actively marketing on the platform. This represents a significant opportunity for you to reach your dream clients.
Once you understand the core principles required to profitably invest in paid advertising you will unlock a new stream of building wealth through your business for you and your family, you will never worry about finances again, because you are always in control of your income generation.
