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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
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 revolutionised how advertisers handle bids. Google’s Smart Bidding strategies—Target CPA and Target ROAS adjust your bids in real-time, scanning factors like user behaviour, device type, and location. This way, you avoid burning money on searches that rarely convert and put your resources where they’ll pay off.
Performance Max campaigns take automation even further by spreading your ads across multiple Google networks. You upload creative assets, define your audience, and let the system pinpoint the best mix of placements. It’s a handy approach if you want to skip endless manual tweaks while still gaining strong performance data.
Modern AI-powered tools have revolutionised how advertisers handle bids. Google’s Smart Bidding strategies—Target CPA and Target ROAS adjust your bids in real-time, scanning factors like user behaviour, device type, and location. This way, you avoid burning money on searches that rarely convert and put your resources where they’ll pay off.
Performance Max campaigns take automation even further by spreading your ads across multiple Google networks. You upload creative assets, define your audience, and let the system pinpoint the best mix of placements. It’s a handy approach if you want to skip endless manual tweaks while still gaining strong performance data.
3. Optimise your keyword strategy
The right keywords can be your best friend—or worst enemy—when it comes to ad costs. Long-tail and high-intent search phrases usually cost less per click and bring in users who are more likely to convert. For instance, someone searching “best running shoes for marathon training” is probably closer to buying than someone who just types “shoes.”
Don’t forget negative keywords. These act like a sieve, stopping your ads from appearing to folks who are definitely not interested in your product or service. Google Keyword Planner and SEMrush can help you spot popular words or phrases you should either target or exclude, making sure your budget goes towards valuable clicks.
The right keywords can be your best friend—or worst enemy—when it comes to ad costs. Long-tail and high-intent search phrases usually cost less per click and bring in users who are more likely to convert. For instance, someone searching “best running shoes for marathon training” is probably closer to buying than someone who just types “shoes.”
Don’t forget negative keywords. These act like a sieve, stopping your ads from appearing to folks who are definitely not interested in your product or service. Google Keyword Planner and SEMrush can help you spot popular words or phrases you should either target or exclude, making sure your budget goes towards valuable clicks.
4. Target your audience with first-party data
As third-party cookies fade out, first-party data becomes a bigger asset. This data includes details customers share with you directly (like email addresses or purchasing habits). Google’s Customer Match allows you to upload this data and serve highly precise ads to people who already know you.
You can also use Google Ads’ automated audience expansion to find similar users. In many cases, it broadens your reach to groups resembling your current customers without a big bump in ad spend.
As third-party cookies fade out, first-party data becomes a bigger asset. This data includes details customers share with you directly (like email addresses or purchasing habits). Google’s Customer Match allows you to upload this data and serve highly precise ads to people who already know you.
You can also use Google Ads’ automated audience expansion to find similar users. In many cases, it broadens your reach to groups resembling your current customers without a big bump in ad spend.
5. Improve your quality score
Google’s Quality Score determines how much you pay per click, so boosting it can lead to lower costs. Three key factors shape your score:
Ad relevance
Make sure your copy speaks to the user’s search terms and intent.
Expected CTR
Deliver compelling headlines and calls to action so people feel motivated to click.
Landing page experience
Provide a fast-loading, mobile-friendly landing page that lines up with your ad’s message. The higher your Quality Score, the easier it is to appear in good positions for less money.
Google’s Quality Score determines how much you pay per click, so boosting it can lead to lower costs. Three key factors shape your score:
Ad relevance
Make sure your copy speaks to the user’s search terms and intent.
Expected CTR
Deliver compelling headlines and calls to action so people feel motivated to click.
Landing page experience
Provide a fast-loading, mobile-friendly landing page that lines up with your ad’s message. The higher your Quality Score, the easier it is to appear in good positions for less money.
6. Use advanced ad extensions
Ad extensions give extra information alongside your main ad, which can encourage more clicks at a lower cost like site links, callouts, or structured snippets. You might feature relevant pages, highlight unique selling points, or display contact details.
Effective use of extensions also strengthens your Quality Score, since Google sees that you’re offering a richer experience. If your CTR rises, you may end up paying less per click while attracting more visitors.
Ad extensions give extra information alongside your main ad, which can encourage more clicks at a lower cost like site links, callouts, or structured snippets. You might feature relevant pages, highlight unique selling points, or display contact details.
Effective use of extensions also strengthens your Quality Score, since Google sees that you’re offering a richer experience. If your CTR rises, you may end up paying less per click while attracting more visitors.
7. Retargeting and remarketing for conversions
Not every shopper becomes a customer on the first visit, and that’s where retargeting steps in. By serving ads to people who have already shown some interest—maybe they checked out specific product pages or left items in a basket—you can bring them back to finish what they started. Google Display Network or Facebook Ads are great places to run these retargeting efforts.
Dynamic remarketing narrows things even further, displaying precisely the products visitors explored previously. It nudges people who were close to buying, often leading to lower ad costs than chasing entirely new audiences.
Not every shopper becomes a customer on the first visit, and that’s where retargeting steps in. By serving ads to people who have already shown some interest—maybe they checked out specific product pages or left items in a basket—you can bring them back to finish what they started. Google Display Network or Facebook Ads are great places to run these retargeting efforts.
Dynamic remarketing narrows things even further, displaying precisely the products visitors explored previously. It nudges people who were close to buying, often leading to lower ad costs than chasing entirely new audiences.
8. Optimise ads for voice search and long-tail keywords
Voice search is on the rise. When people speak their queries, the audience often phrases them differently like longer and more conversational than text-based searches. For example, they might ask, “Where can I find the cheapest yoga mats online?” instead of typing “cheap yoga mats.” Long tail keywords help in finding new audiences for your brand.
By using these more specific terms, you can reach users ready to act. Location-based keywords (like “near me”) also shine in voice searches, particularly for local businesses that want to attract people in the immediate area.
Voice search is on the rise. When people speak their queries, the audience often phrases them differently like longer and more conversational than text-based searches. For example, they might ask, “Where can I find the cheapest yoga mats online?” instead of typing “cheap yoga mats.” Long tail keywords help in finding new audiences for your brand.
By using these more specific terms, you can reach users ready to act. Location-based keywords (like “near me”) also shine in voice searches, particularly for local businesses that want to attract people in the immediate area.
9. Video ads to hold attention
If you’re looking to capture attention without draining your budget, video ads could be your best friend. YouTube in-stream ads, for example, only charge you when someone watches a certain segment of your video or engages with it—so casual skippers won’t burn through your funds.
Video action campaigns bundle video with other ad formats across Google’s channels to increase conversions. Better yet, the cost per click on video can often be lower than standard search ads, letting you spread your budget more generously across different campaigns.
If you’re looking to capture attention without draining your budget, video ads could be your best friend. YouTube in-stream ads, for example, only charge you when someone watches a certain segment of your video or engages with it—so casual skippers won’t burn through your funds.
Video action campaigns bundle video with other ad formats across Google’s channels to increase conversions. Better yet, the cost per click on video can often be lower than standard search ads, letting you spread your budget more generously across different campaigns.
10. A/B test your ads
Even minor changes can spark a boost in performance. A/B testing helps you pinpoint what resonates by comparing two versions of your ad. Perhaps one headline leads to more clicks, or an alternative landing page layout drives more sign-ups. Rather than guess, test it out.
Tools like Google Optimise and Unbounce make it easy to experiment. Once you identify a winning version, be it headline, image, or call to action—roll that success out to your full campaign. It’s a simple way to refine your ads and get the most out of every click.
Even minor changes can spark a boost in performance. A/B testing helps you pinpoint what resonates by comparing two versions of your ad. Perhaps one headline leads to more clicks, or an alternative landing page layout drives more sign-ups. Rather than guess, test it out.
Tools like Google Optimise and Unbounce make it easy to experiment. Once you identify a winning version, be it headline, image, or call to action—roll that success out to your full campaign. It’s a simple way to refine your ads and get the most out of every click.
11. Monitor and adjust bidding strategies
Bidding isn’t a “set it and forget it” affair. Keep a close watch on results, and tweak bids as you learn more. If a specific keyword gobbles up the budget without conversions, lower your bid. If a certain phrase consistently brings profitable clicks, raise your bid to capture more traffic.
Enhanced CPC automatically adjusts bids based on how likely a click will lead to a conversion. Another choice, Target ROAS, aims for a specific return level on your spending. By revisiting these settings regularly, you’ll ensure your budget flows towards promising clicks instead of being squandered.
Bidding isn’t a “set it and forget it” affair. Keep a close watch on results, and tweak bids as you learn more. If a specific keyword gobbles up the budget without conversions, lower your bid. If a certain phrase consistently brings profitable clicks, raise your bid to capture more traffic.
Enhanced CPC automatically adjusts bids based on how likely a click will lead to a conversion. Another choice, Target ROAS, aims for a specific return level on your spending. By revisiting these settings regularly, you’ll ensure your budget flows towards promising clicks instead of being squandered.
Frequently Asked Questions
Is $5 a day enough for Facebook ads?
Yes, although your reach might be limited if you target very competitive audiences. Smaller budgets can still work, but you’ll need realistic expectations.
How would you go about reducing marketing costs?
Look for free or low-cost channels like organic social media and email marketing. Narrow your paid ads so you only pay for clicks from the people most likely to convert.
What is the cheapest way of advertising?
Posting on social media without boosting is still free. Engaging posts, fun polls, or community features like groups can spread your brand message without costing a penny.
Conclusion
Lowering ad costs doesn’t have to mean losing visibility or conversions. You can stay alert to performance metrics, avoid overspending on weak segments, and rely on automation tools to sharpen your bids. Analyse your data often, keep your ads relevant, and lead users to a landing page that delivers on your promise. With a bit of persistence and some creativity, your campaigns will improve—and your budget will go much further.
Frequently Asked Questions
Is $5 a day enough for Facebook ads?
Yes, although your reach might be limited if you target very competitive audiences. Smaller budgets can still work, but you’ll need realistic expectations.
How would you go about reducing marketing costs?
Look for free or low-cost channels like organic social media and email marketing. Narrow your paid ads so you only pay for clicks from the people most likely to convert.
What is the cheapest way of advertising?
Posting on social media without boosting is still free. Engaging posts, fun polls, or community features like groups can spread your brand message without costing a penny.
Conclusion
Lowering ad costs doesn’t have to mean losing visibility or conversions. You can stay alert to performance metrics, avoid overspending on weak segments, and rely on automation tools to sharpen your bids. Analyse your data often, keep your ads relevant, and lead users to a landing page that delivers on your promise. With a bit of persistence and some creativity, your campaigns will improve—and your budget will go much further.
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Work with us
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FOR® Industries
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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Click to copy
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Copyright © 2024 FOR®