If you’re a small business, chances are you’re working with a limited budget. That’s why it’s crucial to analyze your advertising spend to ensure it’s being spent wisely. Here are some things to explore:
When starting, the best way to advertise is through a combination of paid and organic channels. This will allow you to build up your brand recognition and get in front of people who may not be actively looking for your product or service. As your business grows, however, it’s important to shift away from free channels and focus on paid advertising channels that can reach more targeted audiences.
The competitiveness of your industry will also affect how much money you can allocate toward marketing efforts. If your industry is highly competitive, then you’ll likely need to spend more than if yours were less competitive. For example, if many companies offer similar products or services in the same geographic area, each company would want to be seen as better than their competitors, meaning they’d need to spend more money on marketing campaigns to stand out ads and websites.
Here are ways to spend your ad budget more strategically:
- SEO: Search engine optimization (SEO) increases a website’s or webpage’s visibility within search engines. It’s one of the most cost-effective ways to increase traffic to your website because it doesn’t require any upfront money. However, it takes time and effort, so investing wisely with this strategy in mind is crucial.
- Paid Advertising: Paid advertising includes social media ads, Google AdWords, and other pay-per-click advertising platforms. It’s suitable for driving traffic quickly and reaching new customers who may not know about you because they’ve never heard of you. The downside is that paid advertising can get expensive if you don’t see what you’re doing, which brings us to our next point!
- Social Media Marketing: Social media marketing is one of the most popular forms of advertising today because it’s free, easy to implement, and has a higher reach. You can target specific demographics, like age or gender, or people in your area who are interested in what you do.
- Email Marketing: Social media marketing is less popular than Email marketing because it takes more time to set up campaigns and deliver them properly. However, it’s still incredibly effective at driving sales because people trust email more than any other form of digital communication.
Your brand and your product are the focal points of any ad campaign. Once you understand what your target market wants and how to deliver it, you can decide which platforms to invest in. Ad platforms are constantly changing and evolving, so you will need more time to review them. You need to know where your audience likes to hang out, get familiar with their environment, discover their online habits, etc. Once you know this crucial information, you will better understand where to allocate your budget depending on what information will work best for your ad campaign.