Ad budgets can be tricky, we’ve all felt it
So here is our advice on how to understand and optimise your ad budgets:
The plateau reality:
- Most accounts reach a performance plateau around 6 months
- This is normal and expected due to market dynamics
- Represents the maximum return from current budget level
- Often mistaken for poor performance or lack of optimisation
Key factors creating the plateau:
- Online auction dynamics
- Market competition
- Cost per click limitations
- Geographic targeting restrictions
- Available search volume
Four strategic options when you hit the plateau:
Increase budget:
- Most straightforward solution
- Maintain same ROI at higher volume
- Requires available capital
- Must ensure margins support increased spend
Refine & focus:
- Tighten geographic targeting
- Focus on best-performing products/services
- Concentrate budget on highest-converting campaigns
- Optimise for specific high-value segments
Maintain & diversify:
- Accept current paid media performance
- Invest in other marketing channels:
- Email marketing
- Social media
- Content marketing
- SEO
Pursue marginal gains:
- Make incremental optimisations
- Stay current with platform changes
- Analyse new search terms
- Test new features and capabilities
The four pillars of digital traffic:
- Paid (Advertising)
- Owned (Direct/Return visitors)
- Earned (SEO/Organic)
- Nurtured (Email/Social)
Remember: The key is recognising when you’ve hit your plateau and then making strategic decisions about which path forward best suits your business goals and resources.
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The post Let’s Talk Ad Budgets appeared first on The Evergreen Agency.