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Return on Investment
Ad Optimisation
AI in Advertising
Ads Targeting
Marketing Strategy
ARTICLE #19
Table of contents
How to lower your ad costs and boost ROI?
Return on Investment
Ad Optimisation
AI in Advertising
Ads Targeting
Marketing Strategy
Return on Investment
Ad Optimisation
AI in Advertising
Ads Targeting
Marketing Strategy
Written by:
3 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
Toni Hukkanen
Head of Design
Creative Direction, Brand Direction
Optimising your ad spend is important to maintaining a balance between digital marketing strategies and your budget. Advertisers should focus on saving costs as much as they can and maximising ROI. This is even more important for platforms like Google and Facebook Ads, where competition can increase prices.
With modern developments in machine learning and AI-driven bidding strategies, advertisers can optimise their campaigns better than ever. Lowering ad costs and increasing ROI involves strategic targeting, automation and continuous optimisation of ads and bids.
By following these strategies, you can ensure that your ad campaigns meet their performance criteria and are doing even better. Let’s discuss in detail how to balance cost efficiency and impactful results through continuous tracking and refinement.
Optimising your ad spend is important to maintaining a balance between digital marketing strategies and your budget. Advertisers should focus on saving costs as much as they can and maximising ROI. This is even more important for platforms like Google and Facebook Ads, where competition can increase prices.
With modern developments in machine learning and AI-driven bidding strategies, advertisers can optimise their campaigns better than ever. Lowering ad costs and increasing ROI involves strategic targeting, automation and continuous optimisation of ads and bids.
By following these strategies, you can ensure that your ad campaigns meet their performance criteria and are doing even better. Let’s discuss in detail how to balance cost efficiency and impactful results through continuous tracking and refinement.
Understand your current ad spend
Understand your current ad spend
This means advertisers should analyse their current ad spending and performance metrics to cut costs and increase their return on investment. KPIs to track include Cost Per Click, Click-Through Rate, and Return on Ad Spend. These all help in understanding how a campaign is performing. By tracking these KPIs consistently, the advertisers can easily spot areas or strategies where ad spending is much higher than necessary or is ineffective.
Google Ads Analytics, Meta Business Suite Insights, Wordstream, and SEMrush are some of the best platforms for tracking ad performance. These platforms offer extensive reports about ad impressions, clicks, and conversions that help advertisers strengthen their approach. By regularly reviewing key metrics, you can make data-driven decisions while ensuring your budget is spent properly to continue improving ad performance.
This means advertisers should analyse their current ad spending and performance metrics to cut costs and increase their return on investment. KPIs to track include Cost Per Click, Click-Through Rate, and Return on Ad Spend. These all help in understanding how a campaign is performing. By tracking these KPIs consistently, the advertisers can easily spot areas or strategies where ad spending is much higher than necessary or is ineffective.
Google Ads Analytics, Meta Business Suite Insights, Wordstream, and SEMrush are some of the best platforms for tracking ad performance. These platforms offer extensive reports about ad impressions, clicks, and conversions that help advertisers strengthen their approach. By regularly reviewing key metrics, you can make data-driven decisions while ensuring your budget is spent properly to continue improving ad performance.
AI machine learning for bid optimisation
AI-driven bidding strategy makes it even easier for advertisers to manage their ad spend. They can use Google's Smart Bidding strategies, Target CPA and Target ROAS. Both these strategies use machine learning to automatically adjust bids in real-time. This helps advertisers to optimise bids based on factors like user behaviours, device types and even their location. With these AI-powered tools, advertisers can ensure that they are not overspending on low-conversion keywords and have enough budget for high-conversion opportunities.
Moreover, Performance Max Campaigns make it easier for an advertiser to manage ad delivery across all Google networks in a far more automated and effective way. Such campaigns help to find the best combination of ad creatives, audiences, and ad placements that perform exceptionally well without needing much manual intervention and ensure that your ad budget is spent efficiently.
AI-driven bidding strategy makes it even easier for advertisers to manage their ad spend. They can use Google's Smart Bidding strategies, Target CPA and Target ROAS. Both these strategies use machine learning to automatically adjust bids in real-time. This helps advertisers to optimise bids based on factors like user behaviours, device types and even their location. With these AI-powered tools, advertisers can ensure that they are not overspending on low-conversion keywords and have enough budget for high-conversion opportunities.
Moreover, Performance Max Campaigns make it easier for an advertiser to manage ad delivery across all Google networks in a far more automated and effective way. Such campaigns help to find the best combination of ad creatives, audiences, and ad placements that perform exceptionally well without needing much manual intervention and ensure that your ad budget is spent efficiently.
Optimise your keyword strategy
A carefully created keyword strategy is usually the main factor keeping ad prices low and increasing conversions. Long-tail and high-intent keywords are very effective. These words are less competitive than broad keywords, so they cost the advertiser lower CPCs while ensuring maximum user conversion. These high-intent keywords reflect a very clear purchasing or action-oriented mindset. It means there is a high chance that users seeing the ad will surely convert, so the advertiser can save their ad cost on wasted CPC.
Adding negative keywords to your ad is also important. It avoids showing your ads to people who are not interested in your products or services, so you save money on these unqualified visitors. Tools like Google Keyword Planner and SEMrush help you identify specific, relevant, and popular key phrases. They can even assist in finding out which negative keywords should be used to keep the ad focused on the right audience.
A carefully created keyword strategy is usually the main factor keeping ad prices low and increasing conversions. Long-tail and high-intent keywords are very effective. These words are less competitive than broad keywords, so they cost the advertiser lower CPCs while ensuring maximum user conversion. These high-intent keywords reflect a very clear purchasing or action-oriented mindset. It means there is a high chance that users seeing the ad will surely convert, so the advertiser can save their ad cost on wasted CPC.
Adding negative keywords to your ad is also important. It avoids showing your ads to people who are not interested in your products or services, so you save money on these unqualified visitors. Tools like Google Keyword Planner and SEMrush help you identify specific, relevant, and popular key phrases. They can even assist in finding out which negative keywords should be used to keep the ad focused on the right audience.
Target your audience with first-party data
First-party data is getting more important as cookies from third parties are eliminated now. First-party data is that you collect directly from your customers, such as email addresses, phone numbers, or any identifying details of consumers. Tools like Google's Customer Match let you take this data and create highly personalised ads that are shown only to people interested in your brand. This increases the chances that they will make a purchase.
You can make your advertising even more effective by using automated audience expansion tools from platforms like Google Ads. These tools automatically help you reach even more people who are similar to your best customers, making your ad more relevant and effective without additional investment.
First-party data is getting more important as cookies from third parties are eliminated now. First-party data is that you collect directly from your customers, such as email addresses, phone numbers, or any identifying details of consumers. Tools like Google's Customer Match let you take this data and create highly personalised ads that are shown only to people interested in your brand. This increases the chances that they will make a purchase.
You can make your advertising even more effective by using automated audience expansion tools from platforms like Google Ads. These tools automatically help you reach even more people who are similar to your best customers, making your ad more relevant and effective without additional investment.
Improve your quality score
However, one of the best ways to reduce the cost of ads is to improve your quality score. Google's quality score measures how relevant and quality your ads, keywords, and landing pages are. The higher the quality score, the lower the CPCs and the better your ad positioning will be. Three major factors affect the Quality Score.
Ad relevance
The ads must also precisely align with users' search intentions. Let's make sure that the keywords are relevant to the ad copy and that it says what the user is looking for.
Expected CTR
Based on past performances, the ads that get the clicks are treated with a higher quality score. That means you must have creative ad copy with compelling calls to action.
Landing page experience
You should also ensure you have a relevant and seamless landing page to which users are directed through ads. The page must load fast, be mobile-friendly, and match the expectations set by the ad. Taking care of these elements will not only reduce your CPC but also contribute to an overall campaign performance improvement.
However, one of the best ways to reduce the cost of ads is to improve your quality score. Google's quality score measures how relevant and quality your ads, keywords, and landing pages are. The higher the quality score, the lower the CPCs and the better your ad positioning will be. Three major factors affect the Quality Score.
Ad relevance
The ads must also precisely align with users' search intentions. Let's make sure that the keywords are relevant to the ad copy and that it says what the user is looking for.
Expected CTR
Based on past performances, the ads that get the clicks are treated with a higher quality score. That means you must have creative ad copy with compelling calls to action.
Landing page experience
You should also ensure you have a relevant and seamless landing page to which users are directed through ads. The page must load fast, be mobile-friendly, and match the expectations set by the ad. Taking care of these elements will not only reduce your CPC but also contribute to an overall campaign performance improvement.
Use advanced ad extensions
Ad extensions play a very important role in making ads stand out and producing a higher click-through rate. Some of these extensions involve site links, callouts, and structured snippets, all meant to give extra information about your business to the user. This could encourage them to perform clicks on your ads. More details like important page links, extra product features, or even some sort of contact detail could be provided. This additional information makes the ads more attractive and might lead to more clicks. Ad extensions can also help improve your quality score, which measures how relevant your ad is.
Ad extensions play a very important role in making ads stand out and producing a higher click-through rate. Some of these extensions involve site links, callouts, and structured snippets, all meant to give extra information about your business to the user. This could encourage them to perform clicks on your ads. More details like important page links, extra product features, or even some sort of contact detail could be provided. This additional information makes the ads more attractive and might lead to more clicks. Ad extensions can also help improve your quality score, which measures how relevant your ad is.
Retargeting and remarketing for conversions
Retargeting is extremely effective for converting those who have interacted with your brand but have not completed a purchase. Retargeting campaigns show personalised ads to users who have visited certain website pages or abandoned items in their shopping cart. It does this on Google Display Network or on platforms like Facebook, reminding users to return and complete the purchase.
Dynamic remarketing can even take this one step further by showing users exactly the products they viewed on your site. This very personalised approach works well in driving purchases, with a reduced ad spend, by reaching out to users who have shown interest in what you offer.
Retargeting is extremely effective for converting those who have interacted with your brand but have not completed a purchase. Retargeting campaigns show personalised ads to users who have visited certain website pages or abandoned items in their shopping cart. It does this on Google Display Network or on platforms like Facebook, reminding users to return and complete the purchase.
Dynamic remarketing can even take this one step further by showing users exactly the products they viewed on your site. This very personalised approach works well in driving purchases, with a reduced ad spend, by reaching out to users who have shown interest in what you offer.
Optimise ads for voice search and long-tail keywords
Because of the increasing voice search trend, you should be working on optimising your ads for natural language and long-tail keywords. Since voice searches are a little wordier than traditional, text-based queries on computers, targeting long-tail keywords would better represent these search patterns in finding new audiences for your brand.
It also increases the visibility of local businesses on mobile searches. People often use voice searches to find services around them, so optimising your ads with "near me" or location-based keywords would result in better performance.
Because of the increasing voice search trend, you should be working on optimising your ads for natural language and long-tail keywords. Since voice searches are a little wordier than traditional, text-based queries on computers, targeting long-tail keywords would better represent these search patterns in finding new audiences for your brand.
It also increases the visibility of local businesses on mobile searches. People often use voice searches to find services around them, so optimising your ads with "near me" or location-based keywords would result in better performance.
Video ads for better engagement
Video ads are an amazing way to engage users and reduce your CPC. On platforms such as YouTube, in-stream ads help you reach an enormous audience while paying only when users engage in your video, for example, when they watch it for 30 seconds or more. This makes video ads supremely effective at telling stories that drive awareness, engagement, and conversions.
Another option is Video action campaigns, which combine video with other ad types like display and search to increase overall conversions on Google's networks. Generally speaking, video ads are much cheaper than traditional search ads; hence, they are a very cost-effective way to drive engagement.
Video ads are an amazing way to engage users and reduce your CPC. On platforms such as YouTube, in-stream ads help you reach an enormous audience while paying only when users engage in your video, for example, when they watch it for 30 seconds or more. This makes video ads supremely effective at telling stories that drive awareness, engagement, and conversions.
Another option is Video action campaigns, which combine video with other ad types like display and search to increase overall conversions on Google's networks. Generally speaking, video ads are much cheaper than traditional search ads; hence, they are a very cost-effective way to drive engagement.
A/B test your ads
A/B testing is an effective process for optimising ad performance. You can test different ad copies, creatives, or landing pages of your ad and observe which element performed better, improving the overall effectiveness of your ads. Regular A/B testing refines your strategy so that your ads resonate with the targeted audience.
For example, you can test headlines or calls to action to get an idea of where the highest CTR comes from. Or you can test other versions of your landing page to identify the one that is easier to navigate and might improve conversion rates. Google Optimise and Unbounce can be useful tools for A/B testing.
A/B testing is an effective process for optimising ad performance. You can test different ad copies, creatives, or landing pages of your ad and observe which element performed better, improving the overall effectiveness of your ads. Regular A/B testing refines your strategy so that your ads resonate with the targeted audience.
For example, you can test headlines or calls to action to get an idea of where the highest CTR comes from. Or you can test other versions of your landing page to identify the one that is easier to navigate and might improve conversion rates. Google Optimise and Unbounce can be useful tools for A/B testing.
Monitor and adjust bidding strategies
Bidding should always be flexible. You should inspect your performance data regularly and adjust your bids to achieve the best ROI. For example, enhanced CPC automatically allows Google to adjust your bids based on the amount of clicks and conversions. This way, you can avoid overspending on clicks that don't provide much value.
Another powerful approach is target ROAS, which automatically adjusts your bids to reach a target on ad spend. By reviewing your bid limits and performance results regularly, you can further analyse them. This will help you adjust your campaigns so your budget may be used in the best possible way.
Bidding should always be flexible. You should inspect your performance data regularly and adjust your bids to achieve the best ROI. For example, enhanced CPC automatically allows Google to adjust your bids based on the amount of clicks and conversions. This way, you can avoid overspending on clicks that don't provide much value.
Another powerful approach is target ROAS, which automatically adjusts your bids to reach a target on ad spend. By reviewing your bid limits and performance results regularly, you can further analyse them. This will help you adjust your campaigns so your budget may be used in the best possible way.
Frequently Asked Questions
Is $5 a day enough for Facebook ads?
Yes, $5 a day can work for Facebook ads, but it might limit your reach and results, especially for competitive audiences.
How would you go about reducing marketing costs?
To reduce marketing costs, you should search and use free tools like organic social media, email marketing, and optimising your targeted ads.
What is the cheapest way of advertising?
The cheapest way to advertise is through social media platforms, especially by using organic posts, engaging content, and using their highly interactive features like stories or groups.
Conclusion
The only way to meaningfully lower ad costs and increase the return on investment is by developing a more intelligent, data-driven approach. It's not all about saving costs. It is about reaching your target audience, optimising ad placements, and using automation tools appropriately. Other ways include regular campaign analysis, maintaining ad relevance, and creating a smooth landing page experience without wasting your budget for high performance. Remember, your campaign should continuously evolve based on performance data to ensure it will remain effective and productive.
Frequently Asked Questions
Is $5 a day enough for Facebook ads?
Yes, $5 a day can work for Facebook ads, but it might limit your reach and results, especially for competitive audiences.
How would you go about reducing marketing costs?
To reduce marketing costs, you should search and use free tools like organic social media, email marketing, and optimising your targeted ads.
What is the cheapest way of advertising?
The cheapest way to advertise is through social media platforms, especially by using organic posts, engaging content, and using their highly interactive features like stories or groups.
Conclusion
The only way to meaningfully lower ad costs and increase the return on investment is by developing a more intelligent, data-driven approach. It's not all about saving costs. It is about reaching your target audience, optimising ad placements, and using automation tools appropriately. Other ways include regular campaign analysis, maintaining ad relevance, and creating a smooth landing page experience without wasting your budget for high performance. Remember, your campaign should continuously evolve based on performance data to ensure it will remain effective and productive.
Frequently Asked Questions
Is $5 a day enough for Facebook ads?
Yes, $5 a day can work for Facebook ads, but it might limit your reach and results, especially for competitive audiences.
How would you go about reducing marketing costs?
To reduce marketing costs, you should search and use free tools like organic social media, email marketing, and optimising your targeted ads.
What is the cheapest way of advertising?
The cheapest way to advertise is through social media platforms, especially by using organic posts, engaging content, and using their highly interactive features like stories or groups.
Conclusion
The only way to meaningfully lower ad costs and increase the return on investment is by developing a more intelligent, data-driven approach. It's not all about saving costs. It is about reaching your target audience, optimising ad placements, and using automation tools appropriately. Other ways include regular campaign analysis, maintaining ad relevance, and creating a smooth landing page experience without wasting your budget for high performance. Remember, your campaign should continuously evolve based on performance data to ensure it will remain effective and productive.
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Work with us
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We’re remote-first — with strategic global hubs
Click to copy
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Click to copy
New York, NY
ny@for.co
Click to copy
Miami, FL
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Click to copy
Dubai, UAE
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Copyright © 2024 FOR®