Page ID: Page 219365267025 Where to Spend Your 2027 Ad Budget, Explained Simply
Where to Spend Your 2027 Ad Budget, Explained Simply
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Ep. 442
50% of Google searches now result in zero clicks, how does that affect your 2027 ad budget?
Kipp dives into how AI has completely disrupted the paid ads landscape, changing where you should spend your marketing dollars and what those ads actually cost. Learn more on which ad channels have become more expensive, where you can still find underpriced opportunities like YouTube Shorts, and why most 2027 marketing budgets are already broken if they don’t account for these rapid changes.
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‘Marketing Against The Grain’ is a HubSpot Original Podcast // Brought to you by Hubspot Media // Produced by Darren Clarke.
ai is completely broken advertising and every marketer i know has to be doing advertising on today's show i'm going to tell you three secrets to advertising in the post ai world i'm gonna show you one channel that has gotten crazy expensive because of ai i'm gonna show you the biggest deal in ai ads today and i'm gonna show you the advertising channel every b2b marketer is really confused about and how to think about it the right way and on today's show we're gonna tell you how your twenty twenty seven marketing budget is probably already wrong given everything that's changing let's get it into today's show today we're gonna show you exactly ally ai has changed the different ad placements you're using what they cost where you should be putting your money which added got more expensive which adds got less expensive whether you're spending a few hundred dollars or a few hundred thousand dollars advertising has never been more important and ai is really broken a lot of traditional advertising channels that businesses have relied on i've talked to founders i've talking to founders all the time and what they're telling me is their ads just don't perform the same way they used to and the reason that is is because the channels themselves have been disrupted i wanna show share you a great example of what i mean i've done some research and i dug in and here's some data around one of the most tried and true advertising channels out there paid search specifically google paid search now if you wanna look at this what's really fascinating is i've got two charts stacked up here the top chart here represents the amount of coverage of google's ai overview feature where you actually get the answer and you don't have to click through to the website and what you'll see from january twenty twenty five till essentially today that's gone from about six percent to over half of search queries now have those ai overview what's fascinating if you then overlay that with the actual impact that's had on paid search it's pretty revolutionary the cost per click or what you actually have to pay per click on google has risen about fourteen percent over that period of time look add price to change but that's actually not the whole story the whole story is that the engagement the paid impressions the amount of people who are seeing those ads are down six percent over that same period of time so your ad prices are going up and that's not just it they're actually being seen by less people you're spending more money to get your ads in front of less people on google because of this changing search landscape do i think google is a smart company and they're gonna figure out how to evolve this over time for sure but we're spending money we're buying ads today and then for buying ads today we need to know that ai is completely disrupted search ads and every business is spending a ton of money on search doesn't mean you should stop spending money on search ads but it means you should rethink how you're placing your budget on search and what other channels you're playing on the really interesting thing about ai is that it's not just disrupting your ads and making them more expensive there's some places where the ads are actually getting cheaper but wanna i show you now is i i'm unveiling what are the five most expensive ad channels in this post ai world and what are the five cheapest ones and it's actually pretty interesting you see a lot of expense around other programmatic cost per click channels like amazon and linkedin but then you also see it around really high prime brand placement because as paid searches is gonna be disrupted people are also spending a lot more money on brand dollars that's why you i see the big takeover overs in times square or premium tv like netflix and prime really increase in costs there's one line on here though that i think is the most important line on this chart and it's right down here it's youtube shorts the price of youtube shorts which is a four dollar and eighty five cost per thousand impressions so it cost you four dollars and eighty five cents for a thousand people to see your ad on youtube shorts if i think one of the biggest arbitrage opportunities in marketing to huge opportunity to buy low and sell high why is that it's an amazing opportunity because ai has made it easier to make videos and so if you are a influencer or your creator you can make better videos and you can make more of them and that takes the inventory of videos especially short form videos on platforms like tiktok and in this case youtube shorts means there's more of them and you've got more people making videos more people consuming them the gap is in the company's placing those ads what's happening is that there's been a gap from the creators adopting ai tools to make more videos and the business is adopting ai tools to make more video ads video ads take a little bit more work you have to have product shots or screenshots you have to have the right visual effects the right text what you can't do is just write a sentence of copy and put it in google search that you can do really really fast video ads take a little bit more time and that time and effort is your opportunity hey if you love to show today i'm giving everything away you can get the research you can get the prompt i used to to do a version of the research for yourself if you want at all click that qr code click the link in the description below and you can get it all for free if i were running marketing for any company right now the number one thing i would do is i would figure out the tooling i would be using hey gen and caption dot ai and all these awesome video tools canvas to actually build a new workflow to make video ads for youtube shorts because the cost at four dollars and eighty five cents per for a thousand impressions is a bargain and it's a bargain because i have far less competition and if i can make really great ads i can likely get more customers and as a leading indicator customers leads for my business than i can on a lot of the traditional channels like paid search and and classic cost per click channels this is the dynamic of ads if you're willing to take a little bit of risk and you're willing to build a new motion in this case learning how to build video ads you can get a huge upside of growth and get a lot more customers for a lot less money and for me youtube shorts is the ads opportunity because these ai video tools have made it easier for everyone to create compelling high quality human focus videos and advertisers have not caught up yet i don't think this is a long window i think this window is gonna last for twelve to eighteen months before the cost of youtube shorts really comes back in line but it is a great buying opportunity right now and if you are a marketer it is some place where i would at minimum be running some tests and if not even be bolder and consider moving a real part of my budget into youtube shorts so on september twenty second you've been following the show you know k and i have our new book coming out it's called loop and it is a new four step framework for how you do anything you want to do in marketing and i wanna bring what i'm saying with youtube shorts to life right now using that framework it's a quick four step framework the first step is express and it's how you actually come up with the initial concept and idea of what you wanna do and so in case of youtube shorts ad you would take customer interviews sales calls any information like that you had as well as any product information or whatever you're trying to promote put that in your ai tool of choice and ask it to generate some core scripts for youtube shorts and what you'll see is you'll get five ten scripts back you'll probably really like one take that and you've already done the first stage of loop because you have this rough script that you can kinda edit in shape the second stage here is taylor and taylor is all about how you make that message personal to your audience and for something like youtube shorts it's actually about targeting so you'd go in and make sure that you're not targeting your whole audience but instead a subset of your audience that really goes and aligns with the message you've taken the third step is amplify that's like hey i gotta go make and record this ad now and actually make the video and hit publish and put some dollars behind it that's pretty straightforward and the last stage of the loop is evolve and evolving all about how you measure and make better and so what you wanna do is you wanna actually look at the data and i would even take you the data from the first week or two of your ad being live take that as well as your content put it in your ai tool of choice and use that to get real insights on how you could make it better and how you can get the performance better the next time and that's what we mean when we talk about the loop once you actually get a core set learnings you start to loop all over again because you can then go make a new script a new video new targeting and actually get better and what we found is that if you just work and do marketing like this you learn at an exponentially faster rate and you keep getting better and better performance and and it's gonna change how you think about marketing but more important how you think about something as simple as an ad test on youtube shorts most businesses think they know their customers they have the data the records the history but it's scattered across three teams and four systems which means no one can actually use it hubspot connects it all every interaction every support ticket every conversation into one platform every team can work from so when sales talks to a customer marketing and already know the full story and when you know more you grow more check out dot com the agent customer platform for growing businesses the third takeaway for anyone doing ads in the world today is that linkedin for b b marketers is the most confused misunderstood advertising platform out there this is a hill i will die on i talked to two types of marketers one type of marketers just like my gosh linkedin is so expensive it's my most expensive channel i just can't get it to work i just don't understand the other type of marketer i talk to is oh my gosh linkedin is incredible the targeting is amazing it is by far and away our most effective ad channel i wish i had the opportunity to spend more money on linkedin because i know i could get more customers so why is there such dichotomy of marketers out there when it comes to linkedin because i am more in the ladder that linkedin is an amazing underutilized channel in b2b advertising especially because i think most marketers are just touching the surface of what linkedin can do and the reason for that is also something we talk about in the loot book we talk about this idea of creative equations and in the new world post ai of marketing the best marketing happens when you start with new equations of how you think about and measure your marketing and linkedin is a perfect example of that the marketers who tend to just think linkedin is super expensive is one they just look at it on a cost per impression basis and if you look at linkedin on a cost per impression basis it's actually very expensive you know you see here single image ads the cost per thousand impressions is almost sixty dollars versus less than five dollars on youtube shorts that is exponentially more expensive however the level of targeting that you get can mean that your cost per click is much much lower than on other platforms and it's likely depending on your product service you can have a lower cost per click on something like linkedin compared to youtube shorts but it's all gonna come down to one how you measure it and two are you able to run the loop are you able to actually say here is my unique message that's very focused am i then tailoring that audience and i'm getting the right targeting that's deeply aligned with that message and this is where most marketers fall apart they have a generic message and they send it to a broad audience and then their ads are really expensive instead you wanna do the exact opposite have multiple specific messages that you deliver to individual groups of very very tailored audiences then you also still need to through that amplify stage make really good ads and have really good copywriting really good creative and then again get look at the data and look at that data in a creative way to make sure that you're not getting blinded by the initial costs like a crazy high cpm and instead you're focused on the customers you're getting through really relevant messaging and targeting linkedin should be a key part if every b2b marketer advertising budget and if it's not i would implore you to rethink how you're measuring your linkedin performance get that new creative equation right and run some new tests using the loop k and i wrote a book together it's almost here loop out learn out market outgrow drops in september to celebrate the launch i'm hosting an early reading august nineteenth eighteenth at the boston public library from six thirty to eight thirty pm there's gonna be a preview of a book there's gonna be a q and a where you can ask any of the questions about the loop framework that you might have and the event is totally free we'll have some food some beverages and get to hang out and have a great time if you're in boston and you can make it we'd love to see the registration link is below grab a spot before they're gone on today's show i told you three major things that we're happening in advertising one that the disruption in ai search is causing cost per click ads in search engines especially google to increase in cost while being shown to fewer and fewer people and so you still need to show up there it still needs to be an important part of your mix but it might not be as big of a part of the mix as it has been historically for you the second thing so i showed you what i thought was the biggest deal in b to b advertising today and that is youtube shorts because their supply demand is out of whack if you can build the muscle to create really good video ads you can get customers for a much lower price than many of the other channels because the costs are so low the last thing is we talked about the linkedin paradox and how so many b2b marketers are divided i helped you think about using creative equations and really changing your ad strategy should be much more focused and targeted to drive much more effective cost per clicks and therefore lower cost of customer acquisition using linkedin as you're thinking about your marketing spend next year i hope you consider how advertising is changing and these three opportunities we'll see you real soon on the next episode of marketing instagram let me tell you about another great podcast this old marketing hosted by joe po and robert rose joe po and robert rose two of the most well known experts in the content marketing space talk about the latest content marketing trends and discuss how businesses can use content to attract and retain customers each podcast show features a discussion of content marketing headlines rants from joe and robert on what's going on in the industry and a this old marketing example from the past that we can learn from always useful entertaining and never more than sixty minutes they recently did an episode called doing the job is no longer enough about the changing relationship between companies creators and employees listen to this old marketing wherever you get your podcasts this data is wrong every freaking time have you heard of hubspot hubspot is a crm platform where everything is fully integrated well i can see the client's whole history calls of support tickets emails and here's a test from three days ago i totally miss hotspot spot grow better though
