How to Get the Most Out of Your Ad Spend: 5 Best Practices
Posted by LeadScale on August 8, 2023
Ready to take your advertising game to the next level? If you missed our other blog posts about ROAS, you can find them here.
With so many platforms and channels vying for our attention, knowing where to focus your ad spend can be tough. But fear not; we’ve got you covered.
In this blog, we’re sharing five tips to help you optimize your ad spend for maximum ROI in 2023. From negative keywords to personalized experiences, we have insider knowledge to help you get the most out of your advertising campaigns.
Target Like a Pro
One of the most effective ways to maximize your ad spend takes place before you’ve paid a penny. To make the most of your ad spend, you need to use data and analytics to identify your ideal customer and tailor your messaging directly to them. Think of it like building a house – if you don’t lay a solid foundation, the whole thing will collapse. Not only does it increase a brand’s visibility and boosts engagement rates with consumers, but targeting the right audience can increase the effectiveness of your advertising campaigns and drive more conversions.
But don’t just take our word for it. Forbes reports that “90% of companies spend at least 25% of their digital advertising budgets on specific targets”. But beware, the same report highlights that identifying the proper personas is the primary challenge for audience targeting. Over half of the North American companies surveyed cite this as their biggest issue.
Say No to the Negatives
You may feel skeptical, but one of the most effective ways to make your ad spend work harder is to use negative keywords. Let us explain. Negative keywords are simply terms you exclude from your campaigns, preventing your ads from appearing in irrelevant search results. For example, Google Ads illustrates; if you’re an optometrist selling eyeglasses, you wouldn’t want your ads to appear when someone searches for “wine glasses” or “drinking glasses.” By weeding out these irrelevant search terms, you can focus your ad spend on the people interested in your offering.
Customer is King
We’ve all heard the phrase “the customer is always right,” and it’s no different regarding advertising. Improving customer lifetime value (CLV) and creating personalized experiences can significantly impact your return on ad spend (ROAS). By increasing CLV, you can retain your customers for extended periods, resulting in more revenue per customer and a better reputation for your business. According to Business News Daily, “a 5% increase in customer retention results in a profit increase of 25% to 95%, with 65% of a company’s purchases coming from returning customers”. So, keep your existing ones happy and engaged instead of constantly chasing new customers.
Spend Less, Earn More
Reducing your ad spend may sound counterintuitive, but hear us out. By testing and optimizing your campaigns, you can identify the channels and platforms that deliver the best results and focus your ad spend on these areas. This means you can spend less overall but achieve better ROI. It’s all about working smarter (and cheaper).
Make it Personal
Finally, creating personalized customer experiences can significantly impact your ad success. People are more likely to engage with ads tailored to their interests and needs. So, make sure you’re using all the data at your disposal to deliver targeted messaging. Whether through dynamic creative or personalized offers. Putting your customer at the heart of your advertising strategy can pay dividends.
Optimizing your ad spend is an ongoing process that requires careful analysis and testing. But by following these top tips, you can make your advertising budget work harder and achieve better results. And remember, if you need a helping hand, we’re always here to support you.