For many companies, their advertising budget is one of their biggest expenses and also one of the most important parts of the business. Without advertising, income and profit would decline, so it is quite a balancing act figuring out how much to spend. One of the best things you can do to manage your advertising budget is to create a strategy. This may be something that changes with time and as performance improves or declines in a particular advertising platform. It’s important to have clear campaign goals, so that you can easily track and monitor your advertisements progress. You’ll also want to track all your advertising expenses so you can really keep tabs on costs and the returns you’re getting for your spend. Keep reading to learn more about my top 3 tips for managing your advertising budget.
Create a Strategy Making a strategy for your advertising budget is the first step in properly managing your ad spend. In your strategy, you’ll want to outline what forms of advertising you’ll use. These days most companies lean on digital advertising, things such as search engine optimization, Google Ads, blog partnerships and social media campaigns. Depending on your industry, there might be one or two of these options that work better for your spend. It can be worth testing out a few different platforms to see what the cost is per sale and it is worthwhile retesting these every quarter or so to ensure you’re getting the best value for your spend and to learn more about what works best for you.
Make Clear Campaign Goals What are the goals of your campaigns? Are you looking to make pure sales, or would you also like to work on boosting your social media channels, having more engagement with your clients, and increased visits to your site? It’s important to really focus on what you would like to achieve and to decide how much that it is worth to you. Your campaign goals might change as you reach certain milestones, but it is important to understand what you want to focus on so you know where to put your ad spend. Companies like the Analog Camera Company focus a lot on improving their search engine performance, so when someone searches for certain terms they come up at the top of Google.
Track Your Expenses I think tracking your expenses goes hand in hand with tracking your income, too. You want to continue to do what is working best for you, and in order to know what to focus on you need to know how much you’re spending. How much does 100 sales cost you in terms of advertising? If you’re focused on growing your follower count, how much does increasing your social media platforms by 100 or 1000 followers cost? Keeping an eye on your overall advertising expenses compared to your overall profits will also allow you to calculate how much approximately increasing your income may cost. It will also help you have a better grasp on your overall turnover for your business. Check out the Speakers’ Spotlight for some great motivational speakers that will inspire you to take your business to the next level.
Managing your advertising budget doesn’t have to feel overwhelming if you take into mind these three tips. I hope it helps you plan your next advertising campaign with ease and ensures you feel confident about getting the results your business needs.