3 Ways to Maximize Advertising Spend in 2021
Nearly half of all online advertising spend is wasted, a recent study suggests, because they aren’t reaching the intended audience. Regardless of the marketing or advertising budget you’re working with, finding ways to maximize your ad spend is always going to be beneficial to your company.
What marketer or digital advertiser wouldn’t want to do more with the resources they have available?
If you want to scale your impact without scaling your budget, consider making the following three adjustments to your digital advertising strategy to maximize your ad spend:
Retarget to Potential Customers
Customers often don’t make a purchase the first time they visit a website or learn about a product or service, so it’s important to continually reach out to them to stay top of mind as they browse the web. Retargeting allows you to reach potential customers who visited your website by displaying your advertisements to them across different outlets.
Retargeting advertisements are shown to be extremely effective in maximizing ad spend and generating more interest and sales. In fact, according to Software Advice, customers are 70% more likely to convert when retargeted with display ads.
Retargeting doesn’t stop with display ads; you can also retarget with searches, too. This allows you to use tailored ad copy on search engines to target potential customers who visited your site. It is likely you would be bidding higher for these retargeted searches, but you’re also more likely to benefit from a return on that spend with increased sales.
When setting up retargeting campaigns, look at the user’s interaction with your website. You can retarget to users who only visited your homepage, or those who left a product in their shopping cart. This tactic, coupled with personalized ad content, will take your spend a lot further.
Adding retargeting to your media mix allows you to reach potential customers who have interacted with your brand and show them personalized ad content. This will maximize your ad spend in a way that targeting only to new users who may be unfamiliar with your brand and not in your target audience can not.
Ditch Keywords that Don’t Deliver Quality Leads
Does more keywords in your account mean more conversions? Absolutely not. So don’t waste your ad spend bidding on keywords that aren’t profitable and aren’t searched by your target audience. Filter out these low-quality keywords and instead focus on the keywords that do resonate with your target audience, and support them with relevant ad copy and high-converting landing pages.
Search Engine Land reported that an agency audited a PPC (pay per click) account for a future client that had spent more than $1.3 million on Google Ads. They found that nearly 99 percent of the account’s keywords were producing less than one conversion per month. The research also showed that around 1 percent of the keywords were 6.4 times more likely to convert into leads.
When it comes to your keywords, focus on quality over quantity, and invest in the keywords that prove their impact to maximize ad spend. And for the keywords that don’t deliver quality leads? Pause them. Otherwise, you’re spending your budget on a keyword strategy that does not benefit your business or your advertising.
Take Advantage of Smart Bidding
A crucial component of maximizing your ad spend is to look at how much you’re spending on PPC and determining whether you’re bidding too high for your keywords and spending more than you should be, especially for unqualified searches. It is likely you are overpaying for some keywords, and underpaying for others, and thus not scaling your ad spend.
One way to save resources and time is to automate your campaigns with smart bidding. Smart bidding tools help maximize conversions at or below your designated target cost per action (CPA) through machine learning.
The key to maximizing ad spend through smart bidding is ensuring that you get sufficient conversion data for your keywords (we outlined how to do this in number 2, above). The more conversion data that’s provided to Google, the greater likelihood you have of seeing solid results from smart bidding.
Also, with smart bidding, be sure to test and measure your smart bidding strategy often, and be prepared to make adjustments. You and your team will want to understand what strong or poor performance means for your account and what to change based on the results. .
When it comes to maximizing your ad spend, the best strategy is to ensure that all of your efforts are effectively reaching your target audience and thus driving quality leads and conversions. Spending time and resources on advertising and marketing efforts that aren’t accomplishing this goal is the same as throwing money into a fire and watching it burn. Work smarter, not harder with your ad budget, and stay focused on your target audience. Not only will you have a stronger advertising strategy, but you will have better leads, more sales, and less wasted spend, which creates more opportunities for growth.