They aren’t idiots. Facebook and Google don’t advertise

Facebook, Google, Amazon, Microsoft, and many other billion-dollar big tech companies don’t spend on advertising because they know that advertising doesn’t work, is corrupt with fraud, and cuts into their profits. They are billion-dollar companies because they sell advertising.
Let me repeat – advertising doesn’t work, is corrupt with fraud, and cuts into profits.
The small percentage of ads left over after the fraud aren’t effective. Why? Because people no longer pay attention to ads. Do you? But to hear the sales reps of Google, Facebook, Amazon, and the local media companies you’d think spending thousands of dollars a month on advertising will make your local business successful. The only people who think advertising is a good thing are the crooks selling it.
I admit to my cynicism about advertising for local businesses. Not because advertising has no value. It actually can have value if a company is spending millions of dollars per month to saturate consumers’ minds.
What the local glossy magazine, the local newspaper, local radio, local TV, Facebook ads, Google, Yelp and Amazon have in common is that when a local business complains, “I didn’t get anything out all the money I spent last month,” the response is EXACTLY the same – “You didn’t spend enough. Spend more.”
What? Spend money! Do NOT SPEND on traditional advertising because of three things: fraud, wasted money and it doesn’t work.

Here are the facts:
  • Fraud.

    Laurie Sullivan reports, in the respected media website Media Post, that researchers have found a minimum of 18% of digital advertising was fraudulent. 18% is an incredibly high number. Imagine if 18% of cars sold were fraudulent. Or 18% of doctors’ visits were fraudulent. Or 18% of the gas you buy for your car was fraudulent. Advertising fraud costs American businesses a minimum of $50 billion per year. Sullivan states that advertising fraud is an organized criminal enterprise and bigger than the drug cartels.

    I don’t mean to be totally cynical but if the tech giants are reporting 18% fraud Las Vegas would give great odds that it is substantially higher.

  • Wasted Money.

    Ad Age reports that an estimated 40%-70% of the reported people who advertisers paid to see their digital ads weren’t seen people at all – they were Bots. Bots are bits of code to fool you into thinking real people are looking at their ads. And yet, Facebook, Google, and other sites posting those ads got paid for them. So how do they justify charging for something that is false? The tech giants say, “we don’t have control over bots.”

    Sorry but my cynicism meter just went off the scale. We KNOW tech giants have more information than the CIA, NSA, and FBI combined. They can tell when we drive, shop, search, sleep, go to the bathroom, exercise, and communicate. And they have the arrogance to say they DON’T KNOW when bots are looking at their ads. Just a bit tough to accept.

  • Advertising Doesn’t Work.

    So, after you subtract the 18% of ads that are fraudulent and the 70% that are seen by bots, that suggests up to 88% of digital ads are a total waste of money. Wait! It gets worse. The remaining 12% of the ads that are actually seen by a real live human being have click-through-rates between .05% and 0.1%. Just think about how low a .05% click-through-rate really is. It means when you pay for 1,000,000 digital ads at $15 cost per thousand views, you wind up paying $250 for each click. Not sale mind you – just a click.

    I don’t know about you but what local business can afford $250 per digital ad click. Let’s say the numbers are off by a factor of 10 – that would mean local businesses would still be paying $25 per click.

    Here’s a radical idea – invest that same money in your customers. Definitely, stop wasting your money on advertising that doesn’t work.

Here’s how to grow your business without advertising!
  1. Build your customer marketing list.

    Ask your My Local Bee account manager how to add 100 customers per month to your customer list. Keep in mind Amazon’s 105,000,000 customer list is its biggest advantage and foundation of its success. Make your customer list the foundation of your success.

  2. Send out four exciting deals each week.

    In your, My Local Bee store create and send out four exciting deals per week. When you create your deals then you can decide to send them out in real-time or schedule them. Remember, that each deal you create has to trigger your customers’ dopamine. Remember, what I pointed out about the cost of click and investing that money into your customer. Creating exciting deals are how to invest.

  3. Reach New Shoppers.

    Make sure your exciting deals are featured in My Local Bee’s massive daily emails to over 15,000 local shoppers. If your deals are BORING, then we put them at the END of the email. Reality demands we put the most AMAZING deals FIRST

Your Action Step: Replace advertising with building your customer list, creating four exciting deals per week, and reaching local shoppers. What is important about those three business building actions is that you are in total control of all three.

Here’s the one caveat – you have to be CONSISTENT. This means you need to do these three things week after week. Marketers say it takes doing something 12 times before shoppers begin to BELIEVE it is part of your BRAND.

Be smart enough to know that there is NO SILVER BULLET. If you are consistent with building your customer list and creating four AMAZING deals per week then you will be delighted with your results. Results that you are totally in control of.

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