When it comes to paid media, marketers tend to focus on the frequency of their ad buys. While some companies choose to run ads every day, others only run them once a week. The question is, how often should you evaluate your budget?
There is no single answer to this question because each company has its own unique situation. For example, a large brand might want to evaluate its budget at least once a month, whereas a smaller startup might only need to look at its budget once a year. However, there are certain guidelines that can help you determine when to review your budget.
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How to Determine Your Paid Media Budget
Before we dive into these guidelines, let’s take a closer look at what exactly a budget means. A budget refers to the amount of money allocated for an advertising campaign. It includes all of the costs associated with running an ad buy such as:
- Cost per click (CPC) – This is the fee charged by search engines like Google and Bing for users to view your ad.
- Cost per impression (CPI) – This is the cost charged by social networks for users to see your ad.
- CPM – This is the cost-per-thousand-impressions (or “cost per thousand views”). In other words, it represents the total amount spent divided by the number of impressions generated.
- Total spends – This is the total amount of money spent on the entire campaign.
The key thing to remember about budgets is that they represent the maximum amount of money that will be spent on a particular campaign. Therefore, if you spend more than your budgeted amount, you will not get any additional benefits from the campaign.
When Should You Review Your Paid Media Budget?
Now that we have a better understanding of what a budget is, let’s discuss when you should review your budget. There are two main considerations here:
- How frequently do you plan to update your budget?
- What type of changes does your budget require?
If you plan to update your paid media budget regularly, then you should check in on it at least once a month. If you don’t update your budget frequently, then you should probably just set aside time once a quarter or even annually to review your budget. Either way, make sure that you keep track of your spending so that you know where you stand.
If you find that your budget needs updating, then you should also consider whether you should increase or decrease your budget. Let’s say that you currently allocate $10,000 towards your paid media campaigns. If you notice that your traffic levels have decreased, then you may decide to cut back on your budget. On the other hand, if you notice that your traffic has increased, then you may decide that you would like to boost your budget.
1. How To Update Your Paid Media Budget
Here are three ways that you can update your budget:
1. By manually entering new data
This method is the most straightforward approach. Simply enter the new information directly into your account. The good news is that you won’t lose any of your historical data.
2. Using Excel spreadsheets
You can use Microsoft Excel to create a spreadsheet that contains all of your budget data. Then, you can simply copy and paste the new data into the appropriate cells.
3. Using Google Sheets
Google Sheets is another option. You can easily import your budget data into this tool. Once you have done so, you can edit the data using simple formulas.
Once you have updated your budget, you need to monitor how well it is performing. For example, if you have allocated $5,000 towards Facebook advertising, but only got 10 clicks, then you might want to adjust your budget accordingly.
In order to effectively manage your budget, you need an accurate view of your current performance. Fortunately, there are several tools available for you to use. Here are some of the best options:
2. What type of changes does your budget require?
There are two types of changes that you might need to make to your budget:
- Increase your budget
- Decrease your budget
Let’s take a look at each one of these scenarios.1. Increasing Your Budget
If you are planning to increase your budget, then you should first determine why you are doing so. Are you increasing your budget because you think that your ad strategy is working well? Or are you increasing your budget because your traffic levels are low? Whatever the reason, you will need to be clear about why you are making this change.
If you are increasing your budget because you believe that your ads are working well, then you should spend more money. However, if you are increasing your budget as a result of poor campaign performance, then you should try to reduce your budget instead.
The key thing here is to focus on what you want to achieve. If you are increasing your marketing budget because you want to improve your website’s conversion rate, then you should focus on improving your landing pages. This way, you will get better results in the long run.2. Decreasing Your Budget
If your budget is too high, then you should start by reducing it. If you are not getting enough conversions from your ads, then you should lower your spending until you do.
How Often Should You Evaluate Your Paid Media Budget?
As mentioned earlier, you should regularly review your budget. In fact, you should do this every month. This will help you to identify trends in your business, which will allow you to make informed decisions.
For example, let’s say that you allocate $1,500 per month towards Facebook advertisements.
However, you notice that you are generating just 5% of your sales through Facebook ads. At this point, you should consider adjusting your budget or changing your ad objectives.
Alternatively, let’s assume that you allocate $10,000 per month towards Google AdWords.
However, you see that you are generating just 2% of your sales through Google Ads. At this point, it would be wise to cut down your spending and focus on other channels.
These are just two examples. The truth is that you should always be monitoring your budget closely.
This allows you to spot any problems early on. It also gives you time to react before things go wrong.
You should regularly review your budget in order to ensure that it is being used effectively. There are many different ways that you can do this.
However, the most effective method is to set up regular reports. These will show you exactly what is happening with your budget.
Once you have identified any issues, you can act accordingly. For example, if you find that your budget is not performing as expected, then you may wish to adjust it.
Alternatively, if you are finding that your budget is too high but you are still not seeing the desired results, then you may wish to reduce your spending.
In either case, you should monitor your budget carefully. This will give you an idea of whether you are achieving the goals that you had when you started out.