What are the best practices for managing digital ad budgets?

There is no set rule that says you should be spending so much on your marketing. Every company is unique with its own set of goals, meaning budgets may need to be adjusted. Some marketers will tell you you should be spending at least $5,000 monthly, but this is not a proven formula. This amount does not reflect geographical markets and certain industries. Not to mention, that figure may be out of reach for smaller to medium sized businesses.

Our recommendation is to calculate your digital ad budget based on a percentage of your overall revenue. As your business grows and succeeds, you can increase your budget accordingly. 

Control Your Digital Ad Budget

While it's relatively easy to set a digital ad budget based on your overall revenue, you need to be able to control it. We recommend the following:

Set an Effective Marketing Strategy

Before you create advertising campaigns, you need to identify your goals. When creating your marketing strategy it ensures your marketing is effective, communicating your products or services to potential customers. 

Keep Track of Current Digital Ad Spending

To maximise your digital ad spending, you need to know how much you spend monthly and where your budget is going. Common costs include content creation, advertising, and sponsorships. This can include website design, blogs, social media, and videos, along with many others. 

Don't forget about any marketing tools you may invest in, such as social media management, analytical tools, video hosting software, website hosting, cloud storage, and more. It is essential you keep a close eye on what you are paying for each monthly, tracking how much they are being used. 

Measure Your Results

With your marketing strategy and budget set, you need to now measure the results, ensuring your strategy is working effectively. This enables you to make adjustments if you are not seeing positive results. The key performance indicators (KPIs) will vary from one company to the next. 

Tips to Maximise Your Digital Ad Budget

It's not uncommon for you to be faced with unexpected expenses from time to time, once your strategy and budget are set. This means you may need to change your budget at a moments notice. In addition to ensuring you have contingency money in your budget, you want to maximise your existing budget, getting the most out of your spending. The best practices to maximise your ad budget includes:

• Focus on platforms that have proven effective
• Set a test budget 
• Use seasonality to your benefit 
• Make use of templates such as marketing budget planning sheets, campaign monitoring sheets, and email templates

Conclusion

Digital marketing is essential for any business that wants to succeed in 2024 and beyond. Economic reality makes it difficult when setting your digital ad budget, which is why you need to manage it correctly. It has become more important to ensure your budget is spend on the best campaigns and channels that generate the best leads and the highest revenue. Contact Genie Crawl today for assistance in managing your digital ad budget.