Once you have a foundation for digital advertising sales, the next goal to hit is how to increase revenue. There are many strategies to apply to reach this objective. Some focus on expanding the total number of customers, which is always crucial. Others center around selling bigger campaigns. In this post, we’ll share insights on how to grow digital advertising revenue using 3-6-5 strategies.
What Are 3-6-5 Strategies?
Our internal digital advertising experts developed the concept of 3-6-5 strategies, and our customers receive guidance on these. Here is what each number represents:
- Three tactics
- Six-month duration
- $5,000 budget
In each proposal, we recommend that you scope three digital tactics for a campaign lasting at least six months with a minimum budget of $5,000.
Why Are 3-6-5 Strategies Effective?
You always want three digital tactics so your advertiser is visible to their prospective audience across content. Most consumers spend time regularly visiting websites, using search engines, being active on social media and consuming OTT/CTV.
If companies use at least three ad types, they have a better chance of catching someone’s attention and being more memorable, and people also consume ads differently depending on where they are. You have many options to recommend — SEM (search engine marketing), display ads, geofencing, OTT/CTV, social media and more.
Another reason for grouping tactics is the revenue angle, as each tactic has its own retail cost. For example, selling just local SEM has a low margin. If you add display and geofencing to this, the overall revenue is much higher.
In addition, you should complement digital with radio spots. Having both ad types provides reach and targeting, and radio lifts the performance of digital.
The campaign duration of six months gives it enough time to perform. That is especially true for SEM and social media ads. We advise our clients that the best practice for both is a minimum of 90 days. With a six-month campaign, there is time for it to perform and reach intended audiences.
The last part is the budget. A minimum of $5,000 is necessary to sustain a six-month campaign across three tactics. How you distribute those dollars will depend on the tactics chosen, the goal, and whom the advertiser is targeting.
What Is the “Right” Ad Mix?
There is no one answer to this question. Many factors come into play, including:
- The objective of the campaign (e.g., drive sales, launch a product, hire employees)
- The target audience
- What creative the advertiser has (e.g., videos, product imagery, etc.)
- The size of the budget
We created an ad mix tool to support local media sellers in designing the ideal mix to meet customer needs and help you grow digital advertising revenue. Explore how it works, and use it as a framework for 3-6-5 strategies.