Book a Call
Book a Call
ARTICLE #19
Table of contents
How to lower your ad costs and boost ROI?
Written by:
7 min read
Updated on: March 10, 2024
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Digital advertising budgets can slip away faster than tea at a busy office meeting. Platforms like Google and Facebook Ads often feel like a fierce competition ground, making it tricky to trim expenses without sacrificing performance. The upside? Modern machine learning and AI-driven bidding strategies let you take back some control. By leveraging these tools, you can tip the balance in your favour and see stronger results for every pound you invest.
Over the next few sections, we’ll highlight proven ways to keep budgets in check and campaigns on track. You’ll see how consistent monitoring and smart adjustments ensure every penny is used wisely, whether you’re running simple text ads or more advanced placements. Let’s look at how to balance cost efficiency with powerful performance and keep your brand in front of the right people at the right time.
Digital advertising budgets can slip away faster than tea at a busy office meeting. Platforms like Google and Facebook Ads often feel like a fierce competition ground, making it tricky to trim expenses without sacrificing performance. The upside? Modern machine learning and AI-driven bidding strategies let you take back some control. By leveraging these tools, you can tip the balance in your favour and see stronger results for every pound you invest.
Over the next few sections, we’ll highlight proven ways to keep budgets in check and campaigns on track. You’ll see how consistent monitoring and smart adjustments ensure every penny is used wisely, whether you’re running simple text ads or more advanced placements. Let’s look at how to balance cost efficiency with powerful performance and keep your brand in front of the right people at the right time.
1. Understand your current ad spend
1. Understand your current ad spend
It’s all too easy to throw money at online campaigns and hope something sticks. That’s where performance metrics earn their keep. Keep an eye on Cost Per Click (CPC), Click-Through Rate (CTR), and Return on Ad Spend (ROAS). If these figures drop below what you’d expect—or you’re not sure what to expect—dig into the data and see what’s going on.
Platforms like Google Ads Analytics, Meta Business Suite’s analytics, WordStream, and SEMrush can reveal whether a certain keyword chew up your budget or a surprising demographic is delivering better returns than you assumed. When you understand where your funds are going, you can stop paying for clicks that don’t help you and focus on the ones that do.
It’s all too easy to throw money at online campaigns and hope something sticks. That’s where performance metrics earn their keep. Keep an eye on Cost Per Click (CPC), Click-Through Rate (CTR), and Return on Ad Spend (ROAS). If these figures drop below what you’d expect—or you’re not sure what to expect—dig into the data and see what’s going on.
Platforms like Google Ads Analytics, Meta Business Suite’s analytics, WordStream, and SEMrush can reveal whether a certain keyword chew up your budget or a surprising demographic is delivering better returns than you assumed. When you understand where your funds are going, you can stop paying for clicks that don’t help you and focus on the ones that do.
2. AI machine learning for bid optimisation
Modern AI-powered tools have changed how advertisers handle bids. Google’s Smart Bidding strategies such as Target CPA and Target ROAS adjust your bids in real time, scanning factors like user behaviour, device type, and location. This approach keeps you from wasting money on searches that rarely convert while directing your resources toward clicks that truly matter.
Performance Max campaigns push automation further by distributing your ads across multiple Google networks. You provide creative assets, define your audience, and let the system identify the best blend of placements. It’s a handy tactic if you’d rather skip endless tweaks and gain performance insights. Keep an eye out for seasonal trends, too. Automated bidding can ramp up or reduce spend during peak periods, freeing you from constant manual oversight and allowing you to focus on strategic decisions.
Modern AI-powered tools have changed how advertisers handle bids. Google’s Smart Bidding strategies such as Target CPA and Target ROAS adjust your bids in real time, scanning factors like user behaviour, device type, and location. This approach keeps you from wasting money on searches that rarely convert while directing your resources toward clicks that truly matter.
Performance Max campaigns push automation further by distributing your ads across multiple Google networks. You provide creative assets, define your audience, and let the system identify the best blend of placements. It’s a handy tactic if you’d rather skip endless tweaks and gain performance insights. Keep an eye out for seasonal trends, too. Automated bidding can ramp up or reduce spend during peak periods, freeing you from constant manual oversight and allowing you to focus on strategic decisions.
3. Optimise your keyword strategy
The right keywords can be your best friend or your worst enemy when it comes to ad costs. Long-tail and high-intent search phrases often cost less per click and bring in people who are more likely to convert. Someone who types “best running shoes for marathon training” is probably closer to buying than someone who just types “shoes.”
Negative keywords are equally vital. They block your ads from appearing to people who definitely won’t buy your product or service. Google Keyword Planner and SEMrush can highlight popular phrases you should either target or exclude, making sure your budget goes toward valuable clicks. Also, watch your match types: broad match keywords can attract a wide range of searches, so consider pairing them with phrase or exact matches to keep irrelevant traffic at bay.
The right keywords can be your best friend or your worst enemy when it comes to ad costs. Long-tail and high-intent search phrases often cost less per click and bring in people who are more likely to convert. Someone who types “best running shoes for marathon training” is probably closer to buying than someone who just types “shoes.”
Negative keywords are equally vital. They block your ads from appearing to people who definitely won’t buy your product or service. Google Keyword Planner and SEMrush can highlight popular phrases you should either target or exclude, making sure your budget goes toward valuable clicks. Also, watch your match types: broad match keywords can attract a wide range of searches, so consider pairing them with phrase or exact matches to keep irrelevant traffic at bay.
4. Target your audience with first-party data
As third-party cookies fade away, first-party data gains more importance. This data includes details customers share with you directly (like email addresses or buying patterns). Google’s Customer Match lets you upload this information and show precise ads to people who already recognise your brand.
You can also use Google Ads’ automated audience expansion to reach similar users. Often, it expands your influence to groups that resemble your existing customers without causing a big jump in ad spend. Better yet, using first-party data helps build loyalty since you’re engaging those who’ve already shown genuine interest.
Consider linking your CRM with ad platforms for tracking. Segment your audience so you can refine messages for repeat buyers or dormant accounts. You’ll spend less on random clicks and more on visitors who might convert.
As third-party cookies fade away, first-party data gains more importance. This data includes details customers share with you directly (like email addresses or buying patterns). Google’s Customer Match lets you upload this information and show precise ads to people who already recognise your brand.
You can also use Google Ads’ automated audience expansion to reach similar users. Often, it expands your influence to groups that resemble your existing customers without causing a big jump in ad spend. Better yet, using first-party data helps build loyalty since you’re engaging those who’ve already shown genuine interest.
Consider linking your CRM with ad platforms for tracking. Segment your audience so you can refine messages for repeat buyers or dormant accounts. You’ll spend less on random clicks and more on visitors who might convert.
5. Improve your quality score
Google’s Quality Score determines what you’ll pay per click, so boosting it can lower your costs. Three factors weigh heavily on this score. Master them, and you’ll see better ad placement for less money. By nailing ad relevance, expected click-through rate, and landing page experience, you’ll strengthen your campaign’s impact and make every pound go further. Let’s break them down.
Ad relevance
Ad relevance hinges on how closely your copy matches the user’s search terms and intentions. Craft headlines and descriptions that speak directly to what people are hunting for. If someone types “vegan bakery London,” highlight that speciality. Swap out vague language for specifics that connect with potential buyers. Also, refresh your ads regularly. If they run stale, your click-through rate can quickly dip, raising your costs in the long run.
Expected CTR
Expected CTR measures how probable it is for your ad to get clicked when shown. To boost this, craft headlines that highlight a benefit, avoid fluff, and use keywords that reflect the user’s query. A call to action helps nudge people to click. Keep testing variations of text. If your CTR goes upward, search engines interpret your ads as relevant, and you may land better positions at a lower cost.
Landing page experience
Landing pages should load fast and match your ad’s promise. If someone clicks an offer for 50% off running shoes, show that offer immediately. A mobile-friendly design also keeps people from bouncing. Include a concise headline, product details, and a call to action so users know what to do next. Don’t bury essential information behind clicks. The smoother their path, the more likely they’ll convert and boost your campaign’s efficiency.
The higher your Quality Score, the simpler it is to appear in strong positions for fewer pounds.
Google’s Quality Score determines what you’ll pay per click, so boosting it can lower your costs. Three factors weigh heavily on this score. Master them, and you’ll see better ad placement for less money. By nailing ad relevance, expected click-through rate, and landing page experience, you’ll strengthen your campaign’s impact and make every pound go further. Let’s break them down.
Ad relevance
Ad relevance hinges on how closely your copy matches the user’s search terms and intentions. Craft headlines and descriptions that speak directly to what people are hunting for. If someone types “vegan bakery London,” highlight that speciality. Swap out vague language for specifics that connect with potential buyers. Also, refresh your ads regularly. If they run stale, your click-through rate can quickly dip, raising your costs in the long run.
Expected CTR
Expected CTR measures how probable it is for your ad to get clicked when shown. To boost this, craft headlines that highlight a benefit, avoid fluff, and use keywords that reflect the user’s query. A call to action helps nudge people to click. Keep testing variations of text. If your CTR goes upward, search engines interpret your ads as relevant, and you may land better positions at a lower cost.
Landing page experience
Landing pages should load fast and match your ad’s promise. If someone clicks an offer for 50% off running shoes, show that offer immediately. A mobile-friendly design also keeps people from bouncing. Include a concise headline, product details, and a call to action so users know what to do next. Don’t bury essential information behind clicks. The smoother their path, the more likely they’ll convert and boost your campaign’s efficiency.
The higher your Quality Score, the simpler it is to appear in strong positions for fewer pounds.
6. Use advanced ad extensions
Ad extensions provide added details alongside your main ad, prompting more clicks at lower costs. Options include site links, callouts, and structured snippets. You might highlight special pages, emphasise your best features, or include direct contact info. By presenting extra data up front, you make it easier for users to find what they need and follow through.
Extensions can also strengthen your Quality Score because search engines see that you’re enhancing user experience. Higher click-through rates often lead to lower costs per click, giving you more mileage from the same budget. Test different extensions like location or call extensions to see which ones resonate best with your audience. Once you’ve found a winning combination, monitor performance metrics and keep refining. Over time, this approach can deliver a ROI without inflating your spend.
Ad extensions provide added details alongside your main ad, prompting more clicks at lower costs. Options include site links, callouts, and structured snippets. You might highlight special pages, emphasise your best features, or include direct contact info. By presenting extra data up front, you make it easier for users to find what they need and follow through.
Extensions can also strengthen your Quality Score because search engines see that you’re enhancing user experience. Higher click-through rates often lead to lower costs per click, giving you more mileage from the same budget. Test different extensions like location or call extensions to see which ones resonate best with your audience. Once you’ve found a winning combination, monitor performance metrics and keep refining. Over time, this approach can deliver a ROI without inflating your spend.
7. Retargeting and remarketing for conversions
Not every shopper completes a purchase on the first visit, and that’s where retargeting comes in. By showing ads to people who have already shown interest, maybe they viewed particular product pages or left items in a basket, you can encourage them to return and wrap up the sale. Google Display Network or Facebook Ads are common places to run these ads.
Dynamic remarketing zooms in further, displaying exactly the products visitors examined before. This can nudge people who were on the edge of buying, often at a lower ad cost than chasing brand-new audiences. Plus, repeat impressions remind potential buyers that you exist and might have the exact solution they need.
Segment your retargeting lists. Ads for cart abandoners differ from those who only glanced at your homepage, preventing extra spend.
Not every shopper completes a purchase on the first visit, and that’s where retargeting comes in. By showing ads to people who have already shown interest, maybe they viewed particular product pages or left items in a basket, you can encourage them to return and wrap up the sale. Google Display Network or Facebook Ads are common places to run these ads.
Dynamic remarketing zooms in further, displaying exactly the products visitors examined before. This can nudge people who were on the edge of buying, often at a lower ad cost than chasing brand-new audiences. Plus, repeat impressions remind potential buyers that you exist and might have the exact solution they need.
Segment your retargeting lists. Ads for cart abandoners differ from those who only glanced at your homepage, preventing extra spend.
8. Optimise ads for voice search and long-tail keywords
Voice search keeps growing. People phrase queries differently, often longer and more conversational than text searches. They might type “cheap yoga mats” but say, “Where can I find affordable yoga mats online?” These extra words offer clues about intent. Longer phrases generally have lower competition, meaning your cost per click might drop while attracting more ready-to-buy users.
Location-based keywords, such as “near me,” also shine in voice searches, especially for local businesses. By leaning on these specifics, you can connect with people seeking immediate solutions. Question-based keywords like “how to fix a leaky tap” or “when does store X open” can also broaden your reach. Break down your content or offers to align with these queries and keep an eye on your analytics to see which voice-based terms spark conversions.
Voice search keeps growing. People phrase queries differently, often longer and more conversational than text searches. They might type “cheap yoga mats” but say, “Where can I find affordable yoga mats online?” These extra words offer clues about intent. Longer phrases generally have lower competition, meaning your cost per click might drop while attracting more ready-to-buy users.
Location-based keywords, such as “near me,” also shine in voice searches, especially for local businesses. By leaning on these specifics, you can connect with people seeking immediate solutions. Question-based keywords like “how to fix a leaky tap” or “when does store X open” can also broaden your reach. Break down your content or offers to align with these queries and keep an eye on your analytics to see which voice-based terms spark conversions.
9. Video ads to hold attention
Video ads can grab attention without draining your budget. YouTube in-stream ads, for instance, only charge you when someone watches a certain portion or interacts with your video so quick skippers won’t gobble up your funds. This setup means you pay mostly for more engaged viewers, potentially stretching your budget further.
Video action campaigns bundle video with other ad formats across Google’s channels to encourage conversions. Often, the cost per click for video is lower than standard search ads, letting you extend your budget to multiple campaigns. To maximise impact, keep your videos concise and focus on a clear message in the first few seconds. Test short bumpers or lengthier formats wisely. If you can hook viewers early, they’re more likely to keep watching and your ad spend will see better returns.
Video ads can grab attention without draining your budget. YouTube in-stream ads, for instance, only charge you when someone watches a certain portion or interacts with your video so quick skippers won’t gobble up your funds. This setup means you pay mostly for more engaged viewers, potentially stretching your budget further.
Video action campaigns bundle video with other ad formats across Google’s channels to encourage conversions. Often, the cost per click for video is lower than standard search ads, letting you extend your budget to multiple campaigns. To maximise impact, keep your videos concise and focus on a clear message in the first few seconds. Test short bumpers or lengthier formats wisely. If you can hook viewers early, they’re more likely to keep watching and your ad spend will see better returns.
10. A/B test your ads
Small changes can spark big gains. A/B testing lets you compare two versions of an ad to see which performs better. Maybe one headline draws more clicks, or a different landing page structure brings higher sign-ups. Rather than guess, run tests to gather tangible proof.
Tools like Google Optimise and Unbounce make it simple. Experiment with headlines, images, or calls to action, measuring results over a set period. Once you find a winner, apply those lessons across your campaign. Keep iterating as tastes and trends shift what worked last month might need a refresh now.
For extra insights, test one element at a time. If you tweak multiple things simultaneously, you won’t know which specific change made the difference. This methodical approach saves budget and provides clearer direction for future adjustments.
Small changes can spark big gains. A/B testing lets you compare two versions of an ad to see which performs better. Maybe one headline draws more clicks, or a different landing page structure brings higher sign-ups. Rather than guess, run tests to gather tangible proof.
Tools like Google Optimise and Unbounce make it simple. Experiment with headlines, images, or calls to action, measuring results over a set period. Once you find a winner, apply those lessons across your campaign. Keep iterating as tastes and trends shift what worked last month might need a refresh now.
For extra insights, test one element at a time. If you tweak multiple things simultaneously, you won’t know which specific change made the difference. This methodical approach saves budget and provides clearer direction for future adjustments.
11. Monitor and adjust bidding strategies
Bidding isn’t a one-and-done activity. Track results closely and adjust as you learn. If a certain keyword drains your budget without conversions, reduce your bid. If another phrase consistently delivers profitable clicks, raise your bid to capture more traffic. Fine-tuning in this way channels funds into higher-performing areas.
Enhanced CPC tweaks bids based on conversion likelihood. Target ROAS pursues a set return on your spend. Revisiting these settings regularly prevents wasted budget and aligns your ads with real-time data. Don’t forget seasonal changes or industry trends, they can make profitable keywords suddenly spike in cost. React quickly to keep your campaigns healthy.
Try automated rules. If cost per acquisition tops a set limit, lower bids automatically. This approach spares you from constant checks most days and keeps your campaign on track.
Bidding isn’t a one-and-done activity. Track results closely and adjust as you learn. If a certain keyword drains your budget without conversions, reduce your bid. If another phrase consistently delivers profitable clicks, raise your bid to capture more traffic. Fine-tuning in this way channels funds into higher-performing areas.
Enhanced CPC tweaks bids based on conversion likelihood. Target ROAS pursues a set return on your spend. Revisiting these settings regularly prevents wasted budget and aligns your ads with real-time data. Don’t forget seasonal changes or industry trends, they can make profitable keywords suddenly spike in cost. React quickly to keep your campaigns healthy.
Try automated rules. If cost per acquisition tops a set limit, lower bids automatically. This approach spares you from constant checks most days and keeps your campaign on track.
Frequently Asked Questions
Is $5 a day enough for Facebook ads?
Yes, though your reach might be restricted in competitive niches. Smaller budgets can still yield results if you stay focused and test regularly. Track metrics such as click-through rate to see if your £5 a day is meeting its goals.
How would you go about reducing marketing costs?
Look for low-cost channels like organic social media or email marketing. Narrow your paid ads so you only pay for clicks from those most likely to convert. Also, repurpose existing content to significantly save on ongoing production time and expense.
What is the cheapest way of advertising?
Posting on social media without boosting remains free. Interesting posts, quick polls, and community groups can spread your brand message with zero cost. Encouraging user-generated content can also spark engagement without draining your wallet. Offering behind-the-scenes peeks also draws curiosity.
Conclusion
Lowering ad costs doesn’t mean giving up on quality or conversions. It’s about watching your metrics, cutting wasteful spending, and using automated tools to fine-tune bids where it counts. Monitor your keywords, audience segments, and creative elements so you can step in quickly when something looks off. A well-structured campaign can keep costs in check without hiding your brand from potential customers.
Remember, digital advertising is never static, consumer behaviour, platform algorithms, and competitor strategies shift all the time. Stay absolutely flexible by testing new approaches, rotating ad creatives, and refining your landing pages. The goal isn’t just about spending less; it’s about getting far more for every pound you actually spend. Combine thoughtful strategy with real-time data, and you’ll keep your campaigns healthy, your ROI strong, and your business growing.
Frequently Asked Questions
Is $5 a day enough for Facebook ads?
Yes, though your reach might be restricted in competitive niches. Smaller budgets can still yield results if you stay focused and test regularly. Track metrics such as click-through rate to see if your £5 a day is meeting its goals.
How would you go about reducing marketing costs?
Look for low-cost channels like organic social media or email marketing. Narrow your paid ads so you only pay for clicks from those most likely to convert. Also, repurpose existing content to significantly save on ongoing production time and expense.
What is the cheapest way of advertising?
Posting on social media without boosting remains free. Interesting posts, quick polls, and community groups can spread your brand message with zero cost. Encouraging user-generated content can also spark engagement without draining your wallet. Offering behind-the-scenes peeks also draws curiosity.
Conclusion
Lowering ad costs doesn’t mean giving up on quality or conversions. It’s about watching your metrics, cutting wasteful spending, and using automated tools to fine-tune bids where it counts. Monitor your keywords, audience segments, and creative elements so you can step in quickly when something looks off. A well-structured campaign can keep costs in check without hiding your brand from potential customers.
Remember, digital advertising is never static, consumer behaviour, platform algorithms, and competitor strategies shift all the time. Stay absolutely flexible by testing new approaches, rotating ad creatives, and refining your landing pages. The goal isn’t just about spending less; it’s about getting far more for every pound you actually spend. Combine thoughtful strategy with real-time data, and you’ll keep your campaigns healthy, your ROI strong, and your business growing.
Work with us
Click to copy
work@for.co
- FOR® Brand. FOR® Future.
We’re remote-first — with strategic global hubs
Click to copy
Helsinki, FIN
info@for.fi
Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
mia@for.co
Click to copy
Dubai, UAE
uae@for.co
Click to copy
Kyiv, UA
kyiv@for.co
Click to copy
Lagos, NG
lagos@for.ng
Copyright © 2024 FOR®
Work with us
Click to copy
work@for.co
- FOR® Brand. FOR® Future.
We’re remote-first — with strategic global hubs
Click to copy
Helsinki, FIN
info@for.fi
Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
mia@for.co
Click to copy
Dubai, UAE
uae@for.co
Click to copy
Kyiv, UA
kyiv@for.co
Click to copy
Lagos, NG
lagos@for.ng
Copyright © 2024 FOR®
Work with us
Click to copy
work@for.co
We’re remote-first — with strategic global hubs
Click to copy
Helsinki, FIN
hel@for.co
Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
mia@for.co
Click to copy
Dubai, UAE
uae@for.co
Click to copy
Kyiv, UA
kyiv@for.co
Click to copy
Lagos, NG
lagos@for.ng
Copyright © 2024 FOR®