• Donovan Guiga

The Key to Advertising in 2022

Updated: Apr 10


What a time to be alive. While we will not lament about Covid-19 or other similar events in the past few years, it is hard to deny the effect they've had on advertising. With everybody staying in their homes and as less people interact with in-person marketing channels a shift has occurred. Traditionally, the top of the funnel is used to get impressions and build buzz. As an example, in the fashion industry, brands use magazines, fashion shows, billboards, giant advertisements on the sides of buildings, and many other channels to drum up attention and gather impressions. As coronavirus settled over the world, these advertising methods became temporarily obsolete. From a rudimentary analysis point of view, this shift is positive for companies who are already established on digital media. Well this is true, it does not tell the entire story. Yes, brands that were already established were able to gain more followers and reach more people, but that does not address the cost included in that escapade. Digital marketing has become extremely expensive in the last few years as more and more companies saturate the limited social platforms that are available to advertisers. This has caused several things to happen.

The first obvious signal that the market was changing drastically was visible through the DTC companies that were founded in the mid-early 2010s. These companies, backed by huge venture capital, used a business model that depended 100% on the accessibility of cheap digital advertising. As coronavirus raged on these companies, whose mission was to sell direct to consumers, all of a sudden started going back on their word. Casper mattress for example started selling their mattresses in stores retail. This is something they previously and very vocally proclaimed would never happen, as it went against their entire mission statement to deliver a mattress direct to the consumer. Unfortunately, with the human capital and structural investments set up for this business plan in years before the coronavirus, adjusting is difficult, and extremely resource intensive.

The second signal came from TikTok and other content platforms. With more and more companies joining the platforms, competition has become fierce. In an effort to stand out, Brands have taken it upon themselves to indirectly slander their competition through the self promotion and qualification of their consumer instigated outreach efforts. For example, companies in previous years used to say "we are sustainable." Now this is no longer enough. As companies compete to be the biggest and best next thing, the conversation has now shifted to "We donate a portion of our proceeds to plant trees. But we're not just going to tell you that, rather we are going to show you a video of the tree farm we are sponsoring and our CEO physically planting your tree." The change in the amount of effort required to support sustainability as an example is huge, representing budget increases of thousands of dollars in the attempt to stay competitive. We at Victoria Hous think that there are much better ways to increase your conversion rate and keep your company relevant without huge PPC budget increases. The truth is, competition is only becoming fiercer, which unfortunately means only one thing: you need to innovate.

We believe that the key to success in advertising for 2022 is passionate authenticity. People want to support brands that have a vision. It is no longer enough to say that you donate $1 out of every purchase to plant a tree in Africa, not when your competition is making a YouTube video where the founder goes to Africa and literally shows the audience how they plant the tree and where it goes. Competing on that scale is a never ending battle of ‘one-ups.’ This is especially true if you are not a large company who commands a large budget ready to be deployed at any sign of trouble. Instead, we recommend natural victories. While definitely accelerated through strategic placements, advertisements, stories and content, this natural approach will not only help you attract consumers, but also help you retain them. If you can remember, five years ago ads promising crazy and unreal things were all over the Internet. Here is an example: “Burn all your belly fat in 7 days with this pill.” While this is an extreme example, and these ads still exist. We are trying to say that consumers are becoming wary as more and more brands put the time and effort into creating content that qualifies the claims that they are making. Why purchase the pill from the company with the crazy ad, when a different company created a tik tok video that explains how the product works? This aforementioned point has been another source of the shift currently happening in the type of copy and content that wins over consumers.

Authenticity is nothing without passion. Think about Lady Gaga or Ariana Grande. While less conventional, these women and their teams are possibly some of the greatest marketers of our time. They're able to capture audiences through content that is relatable, but also extremely authentic. This doesn't stop at just authenticity, because at the end of the day it is really the passion that these artists and brands have that propels them forward. Having passion in your advertising and marketing requires an agency and is willing to go the extra 10 miles. We take the relationship between agency, brand and product very seriously. In our experience, our dedication to communication allows us to attempt to put ourselves in the shoes of the founder who was originally inspired to create the product. This deeper understanding allows us to create advertisements that don’t ‘speak for you,’ rather they ‘speak as you.’ These ads, designed to connect directly to your target audience are built and structured around analytics, relationships, real conversations and a ton of data/research. This process is time-consuming, and sometimes excruciating as the smallest detail can have very large impacts on the ROAS. But, this difficult process, in our experience, is the foundation towards creating a legacy brand.

As coronavirus dies down, we are at an inflection point. If there was ever a time to reshape the way you advertise to the world, it is now. Digital advertising is only getting more expensive, meaning that the price to put your product in front of 1000 people is skyrocketing. This means that you are eventually going to price yourself out of your own market. To get around this you can either create something that has no price market like an iPhone, or hire a marketing agency that is willing to strategize for scalability, not just in the interest of getting their monthly retainer. If this topic of advertising in 2022 is interesting to you, we made a video about it, and will link it below.

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