Why Performance Marketing Is So Expensive — and What Big Players Do Differently
- Thiago Feitosa
- Nov 19
- 3 min read
Digital marketing has changed. What used to work with low budgets and simple campaigns now requires strategy, consistent presence, and a broader view of the funnel.
In recent times, performance marketing has become more competitive, CPM has skyrocketed, and fighting for attention has turned into an Olympic sport. And even with this tougher scenario, many companies are still insisting on a traffic model that no longer matches the reality of the market.
In this article, I’ll explain clearly what has actually changed, why results are dropping for so many businesses, and what separates those who grow from those who just burn money.
The problem starts with the battle for attention
Performance marketing is getting harder. CPM exploded recently, and earning attention is now a task for who understands the whole game, not just the final part of it.
And there’s a phrase that’s painfully true in marketing:
“If you’re not seen, you’re not remembered.”
Even so, many companies keep betting on the same outdated formula: focusing only on the bottom of the funnel and trying to convert the lead immediately, without building relationships or preparing the ground.
The difference between big players and small businesses
While big brands invest in TV, awareness, and brand building…
Small ones are burning budget in conversion campaigns with sky-high CPM, trying to squeeze results out of nothing.
And that’s where the difference lies:
What big players do well
They invest in brand awareness through cheaper channels.
They warm up the audience before making any offer.
They distribute budget intelligently across multiple platforms.
They create demand instead of relying solely on capturing ready-to-buy users.
What small players do poorly
Conversion campaigns directly to cold audiences.
The same audience being hit for months.
CPM reaching 3x the usual value in the niche.
Hoping a “killer landing page” will work miracles on its own.
The classic complaints, and the real mistake behind them
Anyone who works with ads has heard these countless times:
“Instagram doesn’t deliver anymore…”“TikTok isn’t for my audience.”“Google never works.”
The truth?
Big players already understand the current game:
They build presence before trying to sell.
They work awareness on cheaper channels.
They test new platforms.
They create demand instead of only capturing it.
Meanwhile, small businesses keep doing the same thing:
Only conversion for cold audiences.
Saturated audiences being hit nonstop.
Increasing budget as a “magic solution.”
Treating ads as a shortcut to immediate sales.
The math doesn’t add up, and here’s why
When the strategy is weak, the entire funnel suffers:
High CPM → everything gets more expensive.Even a good CTR doesn’t compensate.CPC rises and breaks the funnel.
And not even the best inbound strategy can fix cold, expensive leads with no context.
Because in the end, you can’t nurture someone who shouldn’t have been captured that way.
Before blaming the algorithm, ask yourself:
Is your CPM out of line with your niche?
Are you trying to sell to people who never heard of your brand?
Do you advertise on only one platform?
Do you have a top-of-funnel strategy, or only fire offers?
Are you expecting Inbound to fix cold, overpriced leads?
The truth few people admit
CPM is not just a number. It dictates the whole game.
If you ignore that, the problem isn’t the ad.It’s your interpretation of the field.
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