What is the best paid advertising budget for your business?
Online advertising can improve the performance of your online business, but how much should you spend on advertising? This blog post will help you determine your paid advertising budget based on industry trends and goals.
Paid advertising strategies can have a huge impact on your business growth. Also, well-managed campaigns with clearly defined goals and expectations can help move your business in a positive direction. We know that budgeting is a sensitive and important subject. We also believe that paid advertising is important to our business! That’s why we want to find the right advertising strategy for your business cost-effectively and efficiently.
Here is a step-by-step guide to finding a paid advertising budget for your business:
1. Identify the Result You Are Looking For
Determining which type of result is most valuable to you will help guide the rest of your paid advertising campaign.
The important thing to keep in mind is exactly what you want your audience to do after seeing your ad and clicking on your landing page. Here are the few consumer actions that are very common:
• Ask for Directions
• Call your company
• Fill out a form
• Visit your website Appointment or reservation
• Buy a product
In this step, ask yourself the questions that How many leads are you expecting? And what exhibition are you looking for?
2. Learning From Past Mistakes
If you’ve tried online advertising in the past and didn’t get good results, take this opportunity to learn from your mistakes. Talk to your paying advertisers about the following factors:
• What’s your budget?
• How much have you spent on other marketing and promotional activities in the past?
• What results did you see?
Paid advertising works best when you manage your campaigns effectively. If you’ve been fired for paid advertising in the past, managing your campaigns would have been a problem.
3. Find Out if You Are in a Mid-to-Highly Competitive Industry
4. Decide Whether to Start with a Conservative, Moderate or Aggressive Budget
Once you have identified your business goals, the type of lead value, and industry competition, you need to answer the following question:
What budget should I allocate to paid advertising?
For each industry type, three budget levels should be considered: conservative, medium, and offensive. Most business owners tend to start with a conservative budget, but this is not always the answer to the budget question. In fact, you’ll find that many companies need to invest a little more to get the best results from paid advertising.
For this reason, it is necessary to start with conservative advertising expenses and increase the budget for paid advertising on Google or social media. We don’t want to recommend conservative budgets that start with a “test budget”. The reason is that a large budget (if managed by an advertising professional) will help you expand the reach of your business in ways that a small budget could never do.
Instead, your small budget runs out before you can maximize your business reach and get the most out of your strategy. Ads need a few clicks each day to be effective in more searches. A test budget is notorious for overlooking both benefits, and it’s unlikely to help you achieve your business goals.
Social Media Advertising
Each business approaches this issue in its own way. Many companies measure success by the number of products sold, leads acquired, or leads acquired.
Paid social media advertising as a branding game is harder to track down. But it might be the right move if the strategy aligns with the company’s overall digital marketing goals.
How much to spend on social media?
For this first you need to determine how much you are planning to spend on total digital marketing. Next you decide what % of budget is spent on social media.
• Most companies spend between 5% and 15% of their annual revenue on marketing.
• Between 35% and 45% of your total marketing budget should be spent on digital marketing activities.
• Between 15% and 25% of your digital marketing budget is typically spent on social media marketing (organic and paid).
Never Forget Your Audience While Advertising On Social Media
Before deciding how to spend your social media advertising budget, it’s a good idea to think about who you want to contact and how you want to.
Once you know the answers to these questions, it’s time to figure out which social media channel your specific audience is using (or whether they are using social media).
Facebook (most popular) – 2.24 billion users
Facebook Messenger – 1.3 billion users
YouTube (video) – 1.9 billion
Instagram (creative photos) – 1 billion
LinkedIn (Great for B2B) – 575 million
Snapchat (Young Audience) – 310 million
Twitter (advertising at the moment) – 330 million
Pinterest (smaller audience) – 250 million
To determine your internet advertising budget, you need to answer the following questions:
• What is the goal of paid advertising for my business?
• What do I want potential customers to do with my ads?
• Am I in an industry with moderate to low competition?
• What is my expected exposure?
• How many days do you want to keep your budget on for a month?
• Need an aggressive, moderate, or conservative budget?
Remember through this process that your business is not too small to make an investment into paid advertising! With flexible plan options, and countless outlets to showcase your advertisements, there`s an option for any and everyone.
Answering these questions will help you design and build a strong campaign within a reasonable budget to help meet your business’s goals and help you grow.