6 Tips for Setting Your Ad Budget
There are numerous digital marketing methods that will help you reach new leads and earn conversions. Your ad budget affects which methods you can use for your campaign.
On this page, we’ll discuss some digital marketing methods you can use for your campaign and six tips to help you set an ad budget that works with these methods. If you need help setting an ad budget for your business, call us today at 888-601-5359 to speak with a strategist.
How do I create an ad budget?
Before we dive into specific strategies you can use to ensure maximum ROI, let’s look at some tips for helping you shape your ad budget.
1. Decide who you want to run your campaign
First and foremost, you need to decide who you want to run your campaign since that will impact how much you need to invest in your campaign.
If you want to do it in-house, you need to factor in the costs to run your campaign. You may need to hire more staff to handle your campaign. It’s also important that you consider how long it will take to run your campaign, which affects how much you need to invest in your campaign.
You also have the option to hire an outside company. This is a great option if you don’t have an in-house team available. An outside marketing firm will have the knowledge and expertise to help you create an effective campaign within your ad budget.
The company you hire will affect your budget because each company charges a different rate for each method. You’ll need to look at what they charge to see what you can afford with your budget.
To set your ad budget, you need to know who will run your campaign. It’ll affect how much you spend to run your digital marketing campaign.
2. Identify your target audience
An important factor to your ad budget is your target audience. They affect which methods you use to reach them. It is important that you establish your target audience so you can figure out the right methods for your campaign.
To figure out your target audience, you need to think about your ideal customer. Who is most likely to buy your products or use your services?
You want focus on various types of information to create this persona. It is important to think about demographic information, socioeconomic status, hobbies, interests, and other relevant information. This will help you form your personas and have a complete understanding of who you want to target.
Once you know who you want to target, you can figure out which methods will help you reach them best. This will help you figure out which methods you will use for your campaign. Then you will figure out how those methods fit into your ad budget.
3. Determine how much you can spend
You know your business best. You’re going to know how much you can spend on an advertising campaign. It is important that you think about how much you can realistically afford to spend on an advertising campaign.
When you set your amount, it is important that you don’t set your budget too high. You need to think of an amount that will help you reach people but won’t hurt your business’s potential profit.
Many people differ on their opinions of how much of your budget should go towards advertising. Some say that you should spend 7-8% of your budget if you earn less than $5 million in sales. Others suggest 1-10% depending upon your competition and how long you’ve been a business.
This is a good guideline to help you figure out what is best for your business. When you know how much you can spend, you can figure out which methods will work with your budget.
4. Avoid marketing too many things
Many businesses make the mistake of diving in too deep with their digital marketing plan. They want to advertise too many of their products, which ends up hurting their return on investment (ROI). If you want to get the most out of your ad budget, you need to limit the number of things you market.
When you have an abundance of products, you know your best-sellers and your low-revenue products. You know which products will attract new customers and get them interested in your business. To maximize your ad budget, you need to focus on popular products that will attract new customers.
If you invested your ad budget into advertising every product you offer, you wouldn’t see a good ROI. You’d spread your campaign’s thin and make it difficult for your popular products to reach enough leads. This would also lead to you wasting money on products that only drive a handful of conversions (which may not make up for how much you invest to advertise those products).
By advertising a select number of products, you’ll maximize your ad budget. You’ll attract people that are more likely to convert with products that they want. It will help you make the most of your investment.
5. Determine your campaign goals
When you run an advertising campaign, you need to set goals. Your ad budget should align with these goals. You need to set achievements that are obtainable for your business.
When you know what you want to achieve, you can start to invest in marketing methods that will help you achieve those goals. You will start to plan how to spend your ad budget and where it is best to invest your money. Your team will know how much money you need to spend to achieve your goals.
6. Analyze potential ROI
An important part of your ad budget is the ROI. You want to know that the money you invest will bring a return for your business. It is important that you analyze the potential ROI you can achieve by investing in different methods.
When you analyze each method, you want to see the potential ROI. How many leads will you earn? What is the possible return if a lead converts?
This will give you a better idea of how to shape your campaign. You can invest in methods that will help you earn a high ROI for your business. It’ll help you determine how much of your ad budget you should invest in each method.
When you know your potential ROI, you know how much money you need to invest in your campaign. It will help you shape your campaign and your goals.
Get the most from your ad budget with these strategies
There are numerous methods you will use to reach new leads for your business. Here are two options that will help you earn more credible leads and earn conversions for your business.
Pay-per-click (PPC) advertising
is a great option to factor into your ad budget. This budget-friendly option allows you to post paid ads that appear at the top of the search results. These ads are great for attracting valuable leads that are interested in your business.
PPC operates on keywords. Users conduct searches using keywords to generate results, so you want to be smart about your keyword selection. Keyword research helps you figure out the right keywords for your campaign.
When you conduct keyword research, focus on . These are keywords that contain three or more words. An example of a long-tail keyword is “Carpenter near Harrisburg, PA.”
Long-tail keywords are better for your campaign because they attract better leads. These keywords specify user intent, so you can feel confident that you are attracting leads that want to find your business. You’ll invest your ad budget into earning leads that need your business’ products or services.
You’ll want to focus on long-tail keywords for your PPC ad because they attract more valuable leads and keep your cost per click (CPC) low due to less competition for more specific keywords.
Once you have your keywords selected, you’ll enter the bidding phase. You need to bid for your ad’s placement in the search results. You’ll set your maximum bid, which is the amount you are willing to pay each time someone clicks on your ad.
Your maximum bid and quality score determine your ad’s placement. When you have your ad’s placement, you will launch your campaign and start attracting more qualified leads.
PPC is a great method to fit into your ad budget. It is very budget-friendly because there is no set amount you need to run a campaign. You choose the amount you want to spend on PPC ads.
It is important to note, however, that the amount does affect your campaign’s success. A campaign with a $100 budget won’t see as much success as a campaign with a $1,000 budget. While it’s great that you can set the amount you want to spend, it’s also important to choose an amount that will drive results and make the investment worth your time.
If you want to stretch your ad budget, PPC is a great option. You’ll attract more qualified leads that turn into conversions and help your business grow.
Social media marketing
Social media marketing helps you connect with your audience on a more personal level. Your target audience chooses to follow your social media pages and interact with your business. It’s a great opportunity to build a relationship with leads.
There are numerous social media sites available to your business. You can use Facebook, Twitter, Instagram, LinkedIn, and many more. Your target audience will determine the right platforms for your business. After all, you want to choose platforms they use frequently so you can connect with them better.
Social media allows you to create content that appeals to your audience share it with them. The kind of content you post will depend upon the platform. Social media platforms support different types of content, so you’ll need to get to know your platform well to see what you can post.
When you create your social media page, you’ll be connected to many people who are interested in your business. With paid advertising, you can connect to even more interested leads. Each social media platform has their own form of paid advertising that you can use to obtain more valuable leads.
The advertising program will depend upon the platform. Some social media sites give you a variety of options for your ad, while others only allow photos or videos. You’ll need to get familiar with your social site’s advertising program to see your options.
These advertising programs make it easy for you to obtain new leads. You can create ads to appear in timelines of people who may be interested in your products. It’s a great way to expose your business to interested parties.
Social media marketing helps you obtain more valuable leads for your business. You’ll stretch your ad budget further by investing in advertising on social media.
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When you create your digital marketing campaign, it’s important that you set your ad budget. You need to know what you can afford for your online advertising campaign to know what methods are affordable. Our team at WebFX can help you form a campaign that works best for your budget.
We have a team of 500+ experts that will help you figure out a digital marketing plan that works for you. Our award-winning team has over 25 years of experience creating online marketing plans.
We’re a full-service digital marketing company that offer numerous digital marketing strategies. You can coordinate your ad budget and campaign all in one place instead of relying on multiple companies.
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