Marketing, especially digital marketing, is crucial in the fashion industry. Unfortunately, the cost of social media ads has been increasing exponentially, forcing fashion brands to rethink their marketing strategies.
Why Is the Cost of Digital Ads Increasing?
* CPM (cost per mille) is a paid advertising option where companies pay a price for every 1,000 impressions an ad receives.
A number of factors contribute to the increase. However, the following are some that have the most significant impact:
1. The Pandemic
When the pandemic swept the globe in 2020, many companies decided to leverage their online marketing efforts. Needless to say, the demand for digital ads rapidly increased. As the law of economics goes, a greater demand with the same level of supply inevitably leads to increased prices.
2. The Rise of TikTok
With more millennials and Gen Z’s using TikTok, more companies have decided to focus their marketing efforts on the video platform. TikTok’s initial prices for ads were relatively inexpensive. However, with more businesses wanting to market on their platform, they’ve decided to raise their rates, prompting other social media platforms to do the same.
3. Apple’s Ad Targeting and Privacy Policies
The lack of third-party tracking has made it increasingly difficult for companies to track user information. Now, many companies are relying on first-party data. And with the demand for that increasing, so are the prices.
What Are Some More Cost-Effective Marketing Strategies for Fashion Brands?
Podcasts are now more than just hosts reading a script or celebrities reading ads. Podcasts are a great way to more authentically engage with your audience and allow them to see the more “human” side of your brand.
Besides, podcasting allows you to explore more content topics. For instance, as a fashion company, instead of merely talking about your products and future releases, you can talk about the production process, sustainability, the best celebrity fashion looks, and such. Or you can even invite people in the fashion industry from different walks of life to be a guest on your podcast. Make your podcast the place people come for education and entertainment.
2. Email Marketing
Yes, email marketing still costs money. However, email marketing has a return on investment (ROI) of $36 for every $1 spent.
Brands often use email to inform customers about upcoming sales, releases, and events, but it certainly can be used for more.
Use email to share valuable information with your customers. Similar to podcasting, you can explore a wide range of content topics that your target audience may be interested in.
3. TikTok Videos
You don’t need to pay to promote your content on TikTok for it to reach an audience. If anything, raw, authentic videos that pop up on users’ FYPs may even be more beneficial for your brand. With that said, go ahead and use some of the trending sounds to make your videos.
We should note, however, that the algorithm can be tricky at times, so your team is going to need to stay on their toes.
Although some may say otherwise, you don’t necessarily need a big budget to develop outstanding marketing or ad targeting strategy. With the unpredictable prices of digital ads, it’s now all about being creative and finding authentic ways to represent your brand.