Online advertising is a force to be reckoned with. It acts as an indispensable tool that helps businesses reach their target audience, attain significant brand awareness, and propel sales to new heights. But before hopping onto the online advertising bandwagon with Meta and Google ads at the forefront, businesses must also consider budgeting for their ad spending as a key factor to ensure a sustainable return on investment and maximize campaign efficiency. Proper budget allocation enables precise targeting, optimal reach, and better performance tracking, helping businesses make the most of their ad strategies and achieve meaningful results.
So, the big question is, how do you allocate your ad spend between Meta and Google? The answer lies in a combination of unique factors that caters to the specific business.
What is the Goal?
The first step is to define business goals and there are four important goals to consider.
- Brand awareness – Any marketing journey of a business starts with making the brand known to the common man. The key to a successful brand awareness campaign is reaching out to a broader audience, whether new or existing and familiarising them with the brand and the brand’s message. Reaching out to a broader audience helps subconsciously position the brand at the top, encouraging consumers to remember the brand over a competitor brand when the need arises. This approach also helps establish a loyal customer base over time.
- Lead generation – A campaign designed to generate leads is focused on gathering valuable data about potential customers, such as names and contact information, who may be interested in investing in the products or services. This campaign is designed with the idea of an exchange, perhaps an exclusive offer swapped for contact details. This approach works for businesses looking to build a customer base or whose services require more consideration.
- Website traffic – Directing website traffic consists of encouraging potential customers to visit the desired landing page. The aim is to get users to learn more about the products or services that align with their interests and needs, thereby creating opportunities for engagement and conversion.
- Sales – Sales is often the main goal for businesses looking to maximise their revenue. Campaigns are launched to convert visitors into paying customers by guiding them through an intentional journey right from product discovery to checkout with the help of special offers and call-to-action processes.
Attain Better Insights
The next step is to consider industry benchmarks as they provide a good starting point. Commence by researching the average cost per click (CPC) on Google and Meta to help better allocate the ad spend. Google has a higher cost per click (CPC) as users often display strong buying intent, leading to higher conversions. Meta on the other hand provides a lower CPC that makes it effective to reach out to a large audience at a lower cost.
If the organization had previously run successful ad campaigns before, then analyzing historical data is a smart move. Gain a better understanding of the metrics like conversion rates and cost-per-acquisition. An amalgamation of this data will provide a general estimation of the ad spend required to achieve the desired goals.
Testing the Waters
The best approach is to start with a small budget and gradually increase it in accordance with campaign optimization. This lets you try different strategies, fine-tune your targeting, and maximize your investment. Having conducted different strategies and studying the results, funneling a larger portion of the budget to the platform that better meets the desired goals.
Keep in mind that Meta ads work at reaching a broader audience based on interests and location while Google ads are a more targeted approach focusing on users searching for products or services similar to what your organization offers. Often, the cost-per-click for Google ads can be higher than its counterpart but lead to higher conversion.
Allocating the right ad budget is a continual and ongoing process with various factors at play. Set realistic goals, use relevant data for better decision-making, and continuously optimise the campaigns to make certain that the ad spend effectively works toward achieving the desired business objectives.
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