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Ads, But No Sales? This is Why.

Updated: 7 days ago

The ultimate goal of branding, marketing and advertising is to generate sales, sales, and sales. Period! But, are your digital ads ignoring 50% of potential sales? First, let's start with the basics. Branding is defining the core value of your clean energy product or service. Marketing is communicating your brand to the public. Advertising is marketing through paid channels.


In the last decade, clean energy businesses and entire industries, have shifted the majority of their advertising spend to digital, i.e., online advertising. However, whether a business is managing their digital advertising internally, or through a digital advertising agency, there is ONE reason why digital ads are failing to increase traffic and generate sales.


99% of advertising agencies use an OPEN-LOOP targeting approach to run your ad campaigns; which results in a loss of 50% of potential sales. However, by using a CLOSED-LOOP targeting approach, utilizing data-driven Artificial Intelligence (AI) and Machine Learning (ML), ad agencies can double or triple your sales.


Note: the CLOSED-LOOP methodology has been adapted from an avionics application, where aerospace organizations (NASA, Boeing, etc.) utilize the methodology to reverse-engineer their operational availability outcomes.


OPEN-LOOP TARGETING (99% Use This)


Next time you attend your agency's digital ads presentation, pay close attention to what's being presented, analyzed and concluded. Typically, the agency will share the performance metrics of a specific campaign, then dive into the audience, ads, and sales. Based on the performance of each campaign, the agency will decide how to optimize the audience and ads to improve conversion or sales. That's it! Almost 100% of ad agencies follow this OPEN-LOOP TARGETING approach.


This traditional OPEN-LOOP approach is exclusively focused on how to design the ideal audience and ad to hopefully generate sales. However, this is only 50% of the opportunity. So is your agency missing something? YES. They're missing out on 50% of potential sales. Now, let's talk about the other half.


CLOSED-LOOP TARGETING (Patent Pending)


The other 50% of the opportunity is to start with a purchase or sale, and then determine the corresponding ad and audience. Basically, we need to reverse-engineer the ad campaign to start with an actual sale of the product or service, and then perform thousands runs of a stochastic simulation to determine which ad and audience are ideal for that specific campaign. Then implement the forecasted parameters of the ad content and audience identity into the next run of the campaign. That is how you achieve the other 50% of the opportunity.


To clarify, the thousands runs of the stochastic simulation are not happening on the ad publishing platform (e.g., Google Ads, Facebook Ads, or DSP). Otherwise, they will cost millions of dollars. But rather, the thousands of runs are executed in an external model; specifically a Monte Carlo simulation that utilizes historical ad data to create predictive AI and ML models with forecasted outcomes. In short, the thousand runs cost $0 dollars.


If you're wondering why is your digital ads agency ignoring 50% of the opportunity to generate sales; then the short answer is, it's complicated. Literally! The agency might not have the required expertise to perform this level of advanced predictive modeling outside the Ads publishing platforms. Therefore, they are unable to implement a CLOSED-LOOP TARGETING methodology.



To summarize, most agencies create audiences and ads to hopefully achieve sales. However, they also need to start with actual sales data and then determine the ideal ad content and audience identity. That's the only way to achieve full benefit of your ad campaigns and maximize your return; more specifically, to double or triple your sales.


Once you are able to optimize your digital ad campaigns using CLOSED-LOOP TARGETING, you can double your traffic and sales. Fortence Advertising has applied this approach to several accounts and clients, and doubled or tripled their sales, using the same ads budget. Your business can achieve similar success.


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