Paid Advertising Budget Graphic

The Paid advertising budget: How to Decide Which Channel Drives the Most ROI?

By Megan Grimmett-Norris

In digital marketing, a well-structured paid advertising strategy is crucial for maximizing ROI. With so many channels and tactics available, businesses face the intimidating task of deciding: where do I spend my money most efficiently and effectively? We understand that it can be overwhelming, so this article dives into key considerations to ensure you’re investing in the right tactics and making the most of your ad budget. 

Understand Your Advertising Audience

1.  Understanding Your Audience 

Before diving into deciding which tactics make the most sense for your budget, it’s essential to have a clear understanding of your target audience – do some research into demographic details, interests, behaviors, etc. Put yourself in their shoes: where are they spending most of their time “online”? Having a better understanding of your ideal client will help guide you to the right channels and – bonus – can help tailor your messaging.  

2. The Importance of Goals and Objectives 

Defining clear goals is a critical step in planning – why? It’s simple: Different channels excel at different objectives. For example, CTV/OTT is great if your primary goal is brand awareness, but search might be a better tactic if you’re looking to capture intent and drive immediate conversions.   

So, after figuring out who you’re reaching, it’s important to determine what you’re looking to achieve from the campaign and set measurable KPIs that align with these goals. If you ever need any help with determining which channels and tactics make the most sense for a specific goal, we are happy to help with recommendations. 

3. Overall Ad Budget & Timing 

Your overall ad budget and length of the campaign play a huge role in deciding where you should spend your money most effectively. This one seems obvious, but it’s so important that we can’t overlook it.  

For example, with a smaller ad budget across a month’s flight, more cost-effective channels and tactics (and therefore more impressions) are the way to go – your ad dollars will go a lot further when you can spread those impressions, make a bigger impact, and therefore drive a higher ROI. With larger budgets or shorter flights, this might not be as important. Regardless, make sure you are utilizing your budget wisely across the entire campaign to make an impact on your target audience.  

This is where a good partner can come in – while we don’t have “ad spend minimums”, we pride ourselves on being honest about whether a budget will make an impact (based on audience, timing, tactics, etc.) and can work with you to come up with a carefully thought out plan on how to move forward.   

4. Creative Assets  

This one also seems straightforward – but what type of creative assets do you have available? Or what are you willing to invest to create new assets for the campaign? This also has a big impact on what tactics you select for your campaigns. For example: you can’t run a CTV/OTT campaign without video! 

Our team can help with some creative ad production (display, audio, etc.) We also know a few great video production partners that we can refer you to if you need video assets created. 

Creative Assets for Digital Advertising

5. Seasonal Trends 

Lastly, it’s important to consider seasonal trends when planning your tactics and channels. Keep an eye on industry changes and consumer behavior shifts during different times of the year in order to adjust your ad strategy accordingly. We are here to make recommendations and help guide you through this. 

6. Continuous Monitoring and Optimizations 

Once you have the first five steps down and are running active campaigns, a critical component of a successful paid advertising strategy is continuous monitoring of the campaign’s success and making optimizations accordingly. Use analytic tools (or reporting dashboards!) to track performance across all channels. Regularly assess your KPIs and be willing to pivot your strategy based on where you’re seeing success. If a particular channel or tactic is underperforming, consider reallocating funds to higher-performing areas. 

A/B testing is also an effective way to optimize your campaigns. Experiment with different ad creatives, targeting options, and strategies to find what works best. By being agile and responsive to performance data, you can maximize the effectiveness of your budget. 

Our team uses TapClicks – all the data from your campaigns aggregates into one custom and easy-to-use dashboard where you can track all the above-mentioned items. Together with our strategy team, we can make optimizations and pivotal decisions. 

Conclusion 

How to thoughtfully plan a paid media buy to ensure efficiency and effectiveness is a unique process that requires a deep understanding of your audience, clear goals, budget and timing, creative assets, and ongoing analysis of performance data. By thinking through these steps, you can ensure you’re investing in the proper media, maximizing ROI and driving meaningful results from your advertising efforts. 

Ultimately, the key is to remain adaptable and willing to experiment. Doing so allows your strategy to evolve with the dynamic landscape of digital marketing. The right paid media partner can make this easier on you, especially as we come into planning for 2025 – if you ever need help putting together a media plan that drives growth and success for your business, we’re here to help!  

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