What is your advertising budget worth to you?
Took a google analytics course the last two days and one of the attendees was talking about online advertising during a break. What caught my attention was that he poured his entire advertising budget into his very first ad… let me stop right here for a second.
Tip one: never put your entire advertising budget into one online ad or if you do make sure you have the necessary data to back up your reasoning for doing so. Instead start small, REALY SMALL. I often start with Facebook or ad words for example and use $2 then I wait a few days to collect the data, such as who is clicking, where they are, what are they doing after they click and so on. Learning who your customer demographic is and not who you think they are is so important to narrowing down your ad spending. So that you’re not sending your ad out into a big broad ocean of ads where it just gets lost.
Then the attendee started doing the math and realized that he was paying about $2.00 a click... the instructor said “that’s really good, never do pay by impressions because it’s not good” ... This is where I got confused...
First because the instructor does not handle or monitor ads at all he actually outsources all of that and he forgot to mention the subject matter that we were just learning, checking the data... Secondly is because I run ads using pay per 1000 impressions to start all the time. Spending $2.00 a day and when the ad or content is good I can get up to 99 clicks or more in a few days costing me around 10 - 15 dollars sometimes spending way less than that... If I started the ad as a pay per click at almost $2.00 a click that is $198.00... WAY more than what I would have spent otherwise. No matter what budget I have, $198 of waste is still waste.
Tip Two: after running a $2 ad for 3 days LOOK at the data.
Another good tip could be if for example out of the four locations you’re advertising to 3 of them are getting the most clicks, stop the ad break it apart and customize the advertisement to those locations. Example, if the three locations are Plano, Dallas and Oklahoma and you own a trucking company try to include a picture of your truck in a neighborhood in those communities or with a landmark they would recognize (use your data to really reach your audience) then re-advertise to those locations and demographics for $2.00 again.
Rinse and Repeat always using your data, until you have narrowed down your demographic into convertible leads who will really buy your product. Always remember for the average customer it can take them 6-8 clicks before they buy so take your time to find them. Then do a pay per click ad because those clicks are worth $2.00 each when your return is a SALE.
Waste is waste, I hear of so many marketers who feel like they just need to spend their budgets but spending it right is the way to do it. Think about it, what you save today can be placed in a bigger campaign tomorrow and what is saved this year can be placed in the launch of a new product that needs it more next year.
In the past marketers would say, “I know I’m wasting half of my advertising budget, but I don’t know which half”. Now we have so much data that we know which half and now our entire budget can be placed where it’s needed most.
Chief Marketing Officer