4 Secrets to Maximizing Your Ad Spend
It’s a new year, and with that, comes new advertising campaigns, new products to promote, and a fresh set of budgets, right? Yes…and no.
Though you’d expect most companies to start off the new year with a bang, ready to spend money, launch campaigns, and take advantage of new Q1 budgets, that isn’t always the case. I’m here to tell you why that’s a mistake, and how you can maximize your ad spend for better results.
Secret #1: Know Which Months are the Most Expensive
The common trend is that January is the cheapest, and Q4 is the most expensive. However, do some research on your own business and industry. What time of the year is the best to spend, and when can you expect the best results? I’d suggest starting with past analytical data and expand into third-party industry data. When you have this data, learn when to spend, when to save, and brainstorm how to combat a down season.
According to AdEspresso, in 2019, the most expensive month for cost per click (CPC) is December, and the least expensive is January. 2020 was an outlier as ad spend went down across the board following the start of the COVID-19 pandemic.
Secret #2: Keep in Mind Rising Q4 Costs
In most industries, Q4 is the most expensive. Expect to see costs rising and results dip starting in October and ramping up through December. Now this doesn’t mean you shouldn’t run ads for Black Friday and the holiday season, but you need to have this knowledge on the back of your mind. Many marketing departments have a "use it or lose it policy” in regards to ad spend budgets. Because of that, spend tends to escalate through the end of each year and Q4. When demand goes up, supply goes down. This leads to a lack of ad inventory, and the advertiser spending more to get impressions, clicks, leads, and sales.
Secret #3: Test Campaigns in Q4
While December isn’t the best time to launch a full-blown new product, it can be a time to test some new strategies and campaigns. Try and find a few winning ads, audiences, or even marketing channels with a smaller budget.
Secret #4: Get Ready to Launch Big Q1
After doing some research and seeing costs rise across some of my clients in December, I had to know…would January see better results? So far, my answer is a resounding yes. On LinkedIn especially, I saw costs go up and up as December flew by.
As I hoped, January has reversed this trend. I’ve seen CPL cut in half or even dropping as much as 75% among some of my clients, leading to a mass increase of leads at a much lower cost. To take advantage of this time of year, don’t wait to launch new campaigns. Beat your competitors to the ounch by launching on January 1.
To summarize, what does this mean for you, as an advertiser?
Discover the most expensive months for your business as an advertiser.
Plan for higher costs in Q4.
Test new campaigns before a full launch.
Consider front-loading your budget in Q1, with the lowest spend coming in Q4 (aside from Black Friday and other holiday-specific sales