Budgeting for online ads is crucial to ensure you get the best return on investment (ROI) and avoid wasting money. Here’s a step-by-step guide to help you allocate your budget effectively:
1. Set Clear Goals
Define what you want to achieve with your ads (e.g., brand awareness, lead generation, sales).
Assign a monetary value to your goals (e.g., a lead is worth
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2. Determine Your Total Budget
Decide how much you can afford to spend on ads monthly or per campaign.
Start small if you’re new to advertising (e.g.,
500
–
500–1,000/month) and scale up as you see results.
3. Choose the Right Platforms
Google Ads: Great for intent-based advertising (e.g., search ads).
Social Media Ads (Facebook, Instagram, TikTok): Ideal for targeting specific demographics and interests.
LinkedIn Ads: Best for B2B and professional services.
Display Networks: Useful for retargeting and brand awareness.
4. Allocate Your Budget Across Platforms
Divide your budget based on where your target audience spends time.
Example allocation:
50% to Google Ads (for high-intent traffic).
30% to social media ads (for engagement and retargeting).
20% to display or retargeting ads.
5. Use the 70/20/10 Rule for Testing
70% of Budget: Spend on proven campaigns that consistently deliver results.
20% of Budget: Test new audiences, ad creatives, or platforms.
10% of Budget: Experiment with innovative or high-risk strategies.