Optimize Digital Ad Spending
Optimize Digital Ad Spending are a critical component of the overall business budget and must be aligned with strategic objectives. Today, there is a growing trend in advertising budget allocation towards campaigns that have a positive return on investment. This shift marks a move away from growth at all costs to targeting a net profit per customer for the long-term health of the company.
Marketing Automation Tools to Streamline Campaigns
This requires that all marketing efforts are constantly evaluated and optimized based on data insights. This enables a “trading room floor mentality” and ensures that all resources are being used efficiently and effectively to achieve desired results.
The use of marketing data to optimize ad spend can include changing creative/copy, adjusting bidding strategies, using different ad formats (including video), testing new landing pages and conversion paths, etc. It can also involve leveraging remarketing/retargeting programs and abandon cart/form triggered emails to recover lost sales.
In addition, the use of data to determine the customer lifetime value (CLV) for a target market can be helpful in determining the most efficient way to spend advertising dollars. This is an important metric that indicates how much revenue the average customer is expected to generate over their lifetime with a company. This can be used to inform ad spend and budget allocations for both remarketing and direct advertising efforts. In the case of remarketing efforts, it is typically recommended to use a target CLV of three to four times your average cost of acquisition (CAC). This will provide a more sustainable ROI over the long term.