Digital advertising is one of the most powerful marketing tools in 2024. With over 2 billion active users on Facebook alone, it's a no-brainer you should be advertising online. But how much should you spend?
Plan For Testing
When you initially launch your campaign on Google, Facebook or other social media platforms, your ads will immediately go into a testing mode. The algorithms take time to analyze your ad and build data. As data is collected, you can then optimize your campaign toward more targeted audiences to increase conversions.
We recommend being prepared to start your digital advertising campaign with $100 in daily media and plan for one to three months while you’re in testing mode. Your campaign may be successful right out the gate, but it's more likely that these platforms will go through a learning stage. This is an important step and necessary for a successful campaign. Don’t pause your ads during the testing phase, or you may have to start over with new learnings. And don’t panic if you don’t sell out in the first 24 hours; it is completely normal. Even large brands have to go through a data collection and learning phase in the beginning.
Focus on ROI Over Spend
Once your campaign is profitable, you’ll want to shift your focus more on your return on investment than on your spend. If you’re generating an 8X ROI, why limit your revenues with low media spending? Why not increase your spend and generate exponential growth while your advertising pays for itself? We recommend that you begin to spend as much as possible, as long as the profitability doesn’t go down. Shift your focus from cost per click to earnings per click to find the real leverage. You will likely increase your ROI when you increase your spend because you can reach even more of your target audience and the algorithms will continue to learn and improve with more data.
Need help with Facebook and Google ads? At Harvest Growth, we help businesses achieve their digital advertising goals, from video production to managing and optimizing your campaigns. Click below to receive a free custom quote from our team.