When it comes to managing money, whether its at the blackjack table or managing your ads, it's important to set a budget and put some rules in place to prevent you from getting caught up in the moment and losing it all.
October 13, 2020
If you read our last post, you know why it’s important to test all the things. Testing more things faster is like getting to play more hands at the blackjack table. In blackjack, there are a few hard and fast rules that if you follow, are guaranteed to maximize success. Always split aces. Never split 10’s. Always stand on 17 and higher. The rules don’t guarantee success, but not following them almost guarantees failure.
When it comes to managing money, whether its at the blackjack table or managing your ads, it's important to set a budget and put some rules in place to prevent you from getting caught up in the moment and losing it all. You need to have a strategy, but you also need to carefully observe and adapt accordingly. Here are 3 simple rules to follow when managing your budget, and how our Budgets tool supports the process.
1) Know your goal. In marketing, the goal could take many forms, but is usually measured in the form of a “cost-per” efficiency metric (e.g., cost per conversion, cost per impression, cost per lead) or perhaps return on ad spend (ROAS).
2) Make a plan. Assess the recent & historical performance or your marketing campaigns, as well as industry and societal trends. What do your current payback economics look like? What are your growth targets? Use this information to set expectations for the results you expect from your advertising tactics. In Budgets, you’ll simply enter the amount of your budget and your target metrics. You can also organize and group your marketing campaigns however you’d like and allocate your spend accordingly across these groups.
3) Test, observe, adapt. In the world of marketing, you have to watch what is working and update your strategy to maximize your return. Double down on what is working. In Budgets, you can observe if you are spending to your plan and whether you are getting the returns you expect.
If your budgets dashboard looks like the one above then I suggest you lower the budget for remarketing and double down on prospecting. Once you make those adjustments, keep watching to make sure the odds (your results) haven’t changed. Do not wait until you’ve spent your entire budget before adjusting your strategy.
The budgeting tool has also uncovered a key problem. You aren’t taking advantage of your testing budget.
Remember, you won’t know what works best unless you try new things. Want to see more about how our Budgets tools can help you minimize the amount you spend to get results? Get in touch.
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October 13, 2020
It’s actually no more complicated than this: You should test your ads because you don’t know what will and won’t work. No matter your level of expertise, the refinement of your judgment and taste, the decades of experience or rarity of your sheer marketing talent, you literally can not predict advertising performance. You might really, really believe you can. But that doesn’t change the fact that you can’t.