Are you looking to maximize your advertising investment? Here’s how to Reduce Cost per Result and Boost Campaign Performance
Working with advertising on platforms like Google Ads, Facebook Ads, and TikTok Ads means constantly looking to improve results without spending more.
When it comes to reaching goals, a higher advertising budget isn’t always the answer. It’s important for analysts to consider the key performance metrics before automatically allocating more of the budget toward the brand’s marketing channels.
If you’ve been wondering how to optimize advertising budgets, you’re in the right place! Here are five tips to help you reduce the cost per result and improve your return on advertising investments (ROAS). Keep reading to learn more!
How to reduce advertising costs: 5 handy tips
First, it’s fundamental to consider the unique situation of the company you’re working with if you want to reduce advertising costs effectively. That includes the business’ goals and dynamics of the customer journey.
Here’s what you can do to evaluate your advertising strategy, run tests, and find the best approach for each individual business. Let’s dive in!
1. Revise your strategy according to the sales funnel
To begin cutting your advertising costs, it’s important to analyze your current strategies and how they generate conversions at every stage of the sales funnel.
This step helps you determine whether campaigns are aligned with the customer’s goals, and how you can optimize the advertising budget if need be.
For example, when dealing with a shorter sales cycle, the focus of bottom-funnel campaigns should be to persuade customers to make purchases quickly. On the other hand, if the sales cycle is longer, you’ll have to adapt. Top or middle leads may be easier to come by, and you may have to focus on nurturing, qualifying, and remarketing resources.
That means your advertising plan should be tailored to different channels, with varying budgets and strategies to increase conversions.
2. Segment your audience with precision
Focusing your advertising efforts on audiences that align with your business profile can potentially lead to better results when it comes to ads. So, segmenting your audience is crucial to reducing advertising costs.
More and more platforms have been offering advanced and specific audience-building features for different stages of the funnel. For example, Facebook Ads allow for interest targeting, remarketing, and lookalike audiences that can be combined with geographical and demographic factors to reach people at the right moment in their buying journey.
Use these features wisely to maximize your budget. This means not only deciding which audiences to target based on your buyer personas but also aligning them with campaigns for the top, middle, and bottom of the funnel. Testing is also crucial to see what works best for your company.
3. Experiment with A/B testing
Speaking of which, A/B testing should be a part of the routine of anyone working with ads. After all, it helps identify high-performing content by running versions of the same ad with different variables.
Testing is crucial because sometimes a single element, such as an image, CTA, landing page, message, or even a color, can make all the difference in drawing users on social media. Without testing, it can be hard to know exactly what impacts conversions the most.
So, incorporating this strategy into your routine lets you quickly conceive creatives that provide a better return on investment.
4. Optimize Landing Pages
Keep an eye on your landing page conversion rate. Even when your ads have a high click-through rate (CTR), low conversions may be a sign that visitors are not getting the right incentives to convert into leads on the landing page.
Review and optimize your landing page by considering the following:
- Make sure the landing page promise aligns with what is being advertised
- Make sure to add a compelling call to action
- Remove distractions that might be keeping potential customers from signing up or purchasing.
Many landing page creation platforms offer A/B testing, so you can get better results without resorting to increasing campaign budgets.
5. Analyze results consistently
You’ve probably noticed the word “analysis” pop up several times in this article. Once again, keep in mind how important that step is for anyone working with paid media.
Only by consistent monitoring can you find out how the cost per outcome measures up expectations, identify areas for improvement along the way, and implement new strategies.
Evaluate how other metrics impact the final goal as well, such as cost per click (CPC), click-through rate (CTR), and conversion rate.
Count on Reportei for more strategic campaign analysis
One effective way to analyze your campaigns more comprehensively and efficiently is by automating your reporting. Reportei is a tool that makes all the difference.
Our platform seamlessly integrates with the leading paid media channels such as Google Ads, Facebook Ads, TikTok Ads, LinkedIn Ads, and more, allowing you to capture performance metrics in just seconds. That means leaving more time for what matters: analyzing results and planning successful strategies.
You can also rely on our tool for monitoring indicators, which means more precise data tracking. You can decide and set the most relevant metrics and targets and enable notifications that help keep you on the right track in reducing campaign costs.
Optimize your clients’ analysis and decision-making with Reportei now!
