Over the past few years, paid traffic costs have been rising steadily, putting pressure on businesses of all sizes. This has been particularly challenging for small and medium-sized businesses (SMBs) who are having to compete in increasingly crowded and competitive markets. In this article, we’ll explore the reasons behind this increase, the impact on the market, and how solutions like effective lead management and integrations with PRMs and CRMs can help address these challenges while maintaining profitability.
On the other hand, technology can be a great ally in transforming this pressure into a competitive advantage. Tools like Meets CRM offer centralized lead management, process automation, and integration with multiple channels — which boosts campaign ROI , even in highly competitive scenarios.
Why are paid traffic costs rising ?
1. Greater competitiveness in the advertising market
The number of advertisers on platforms special lead such as Google Ads, Facebook Ads and TikTok Ads has grown exponentially. As a result, small and large companies compete for the same keywords and audiences, which significantly increases the cost per click (CPC). Sectors such as education and e-commerce already record CPCs above R$50.
2. Accelerated Digital Transformation
The pandemic accelerated the migration the 10 most powerful words in marketing of companies to the digital environment, increasing the demand for online advertising.
As a result, the growing number of advertisers has increased competition in virtually every niche.
3. Changes to Privacy Policies
As a result, updates like the end of third-party cookies in Google Chrome and restrictions in iOS 14.5 have made precise targeting more difficult, requiring more investment to reach the right audience.
This forced advertisers to spend more to reach the right audiences.
4. Rising Customer Acquisition Cost (CAC)
Personalization and creating more aero leads elaborate campaigns have increased CAC across multiple industries.
5. Inflation and Operating Costs
Like other markets, online advertising also suffers from global inflation and currency fluctuations.
Impacts on companies
Decrease in Profit Margins
Businesses with tight margins struggle to sustain paid traffic campaigns.
Focus on Quality over Volume
Rising costs have led to the prioritization of qualified leads over high volumes.
Barriers for SMEs
As a result, small businesses find it more difficult to compete with large advertisers and need to look for alternative channels.
Meets helps transform customer service into results by enabling the capture of qualified leads and real-time interaction through channels such as WhatsApp, Instagram and others, reducing dependence on paid traffic and increasing conversion in the initial stages of the funnel.
How to deal with high costs and generate results
Combining technology, automation and efficient lead management is key to tackling high acquisition costs.
First of all, combining technology, automation and efficient lead management is essential to tackle high acquisition costs.
