Bonfire Research: The Evolving Ad Spend Landscape

The digital marketing landscape has undergone significant shifts over the past five years. Keeping the same budget will deliver different results. Growing competition, economic pressures, and dynamic market conditions drive this change. 

A Five-Year Overview of CPC Trends 

Over the past five years, the cost per click (CPC) and cost per thousand impressions (CPM) have risen significantly. Specifically, the average CPC is up approximately 41%, while the average CPM is up around 64%. These increases reflect growing demand and broader economic pressures like rising interest rates and CPI.

Incorporating Internal Data First  

Our research confirms these findings, highlighting similar trends in CPC and CPM increases over the last five years. We’ve observed significant shifts that align with broader industry trends by conducting a thorough analysis. 

Digital Ad Benchmarks and the Evolving Landscape 

Supporting this premise, Tinuiti’s recent Q1 2024 Digital Ads Benchmark Report reinforces that CPCs have surged approximately 40-50%, as external studies substantiate similar trends across various networks. 

Implications for Everyone 

Organisations that have not adjusted their marketing spend or strategy in recent years are seeing a decrease in return on investment (ROI). This shift is due to increased competition and broader economic factors, such as rising interest rates and CPI, which pressure advertising costs. 

Matthew Elshaw further advises, “Marketers must adapt to these evolving financial landscapes by reassessing their ad spends and exploring considered strategies to ensure optimal ROI. Complacency in expenditure can no longer yield the results it once did.” 

 How Organisations Can Tackle Rising Costs 

Organisations must adopt a proactive approach to navigate these rising costs and maximise the return on their marketing investments. 

Here are some strategies:

• Reassess Your Budget Regularly: Review and adjust your marketing budget regularly to align with current market trends and costs. 

• Diversify Your Strategy: Explore a mix of digital advertising channels to avoid over-reliance on any platform. 

• Leverage Data and Analytics: Use advanced analytics to track your campaigns’ performance and identify areas for improvement. A data-driven approach helps optimise your budget allocation. 

• Focus on Quality: Create high-quality, user-focused content that caters to your audience’s evolving demands and behaviours. 

Maximising ROI: Strategic Recommendations 

Navigating today’s complex digital marketing landscape requires a strategic approach. We highlight key insights and strategies to help organisations optimise ad spending and achieve higher returns. Understanding the dynamics of SEO, Performance Media, and Performance Analytics can enhance the effectiveness of your marketing investments. 

This article expands on the evolving dynamics highlighted in previous analyses, ensuring brands stay ahead as the industry transforms. For deeper insights, explore our range of services or contact us to learn how these strategies can support your marketing goals.