Faced with economic uncertainty in the country, every entrepreneur thinks about how to reduce the advertising budget. Whether to stop contextual advertising in Yandex.Direct. What to do with SEO promotion. Will the base of regular customers be enough to keep the business revenue at the same level. It is important to remember that excessive savings can hurt.
Let’s take a look at a few ways you can help reduce your ad spend.
5 life hacks for optimizing your advertising budget
1. Choose the most effective promotion technologies.
For example, you invest in online advertising, placements on partner sites and outdoor advertising. Find out how much it costs to acquire a customer from each channel. For this calculate CAC using the formula. If a channel requires a lot of investment, but the return is low, it makes sense to abandon it, at least for a while.
2. Analyze statistics.
So, if you place contextual advertising, study the indicators in Yandex.Direct. When launching targeted mailings in MTS Marketer, you will see reports in your personal account. Yandex.Metrica statistics will show how efficiently your site works.
Calculate the cost of attracting one client, study the map of user movement around the site, analyze the number of ad impressions and how many people completed the required targeted actions.
3. Check your targeting settings.
The results of advertising depend not only on whether the client is attracted by the content of the ad. It is important whether the right client sees the ad. Review your audience settings before launching your campaign. Pay attention to gender, age, geolocation and interests. This will allow you to exclude from the impressions those people who are not interested in your product.
4. Segment your target audience.
According to the Pareto law, 80% of the profit comes from 20% of the customers. Think about who shop regularly and who shop rarely and little. Who buys expensive goods, and who buys little things. In the future, work with those customers who, in total, spend more with you. It is better to target advertising to this segment, as you know for sure that the costs will pay off.
5. Think strategically.
Use different tools, not only those that bring customers quickly. So, if contextual advertising gives an immediate effect, it will also require additional financial investments. And SEO promotion can show results after months. Decide what is important for your business strategically: get customers now or grow your audience and increase its loyalty gradually.
When planning an advertising budget, one should also take into account the individual characteristics of the company, the scope of activities, the activity of competitors, the uniqueness of products, and the experience of previous advertising launches.