Rebalancing the advertising scale for long-term sustainability.
Organisations eager to connect with younger donors online face a notable challenge: current algorithms on platforms like Meta and Google primarily optimise for maximum returns, inadvertently skewing towards older donors. Recent trends, over the last five years, show a shift in the average donor age from 60 to 65, as strategies aiming to triple returns on ad spend (RoAS) have predominantly attracted this demographic.
But this focus comes at a cost. Acquiring a Gen Z donor in the US can be three times as expensive as acquiring a Boomer – USD$150 versus $50. With equivalent advertising budgets, algorithms favour securing these older donors due to both their lower acquisition costs and higher lifetime value (USD$300 compared to Gen Z’s $200).
So, how do you rebalance this scale? The key lies in enhancing your approach with human intelligence. Algorithms, driven by large language models (LLMs), perform based on the data they receive. To effectively reach our short- and long-term organisational goals, we must thoughtfully apply AI in our advertising strategies. Relying on algorithms might boost our immediate RoAS, but diversifying ad spend to include Gen Z is essential for sustainable long-term impact and ensuring your organisation remains relevant for decades into the future.
Learning outcomes
- Understand how over-reliance on algorithms can skew your donor acquisition, limiting your long-term growth potential
- Learn actionable strategies to adapt your AI and data practices to attract and retain younger, digital-first donors who are crucial for future sustainability
- Learn how to leverage Delve’s Stop/Start/Continue methodology to refine your targeting and improve campaign effectiveness
This session is presented in partnership with Delve.