Whether it’s your own budget, your clients’ business, renewed budget entails new goals. Some are going to be attainable, and some may be a tad bit of a stretch. That’s why today, we’ll talk about important factors that affect ad spend pacing.
If you want to hit the ground running and deliver on your promises to clients, you need to make sure you spend your money effectively all throughout the month. For pacing budget and for paid media, there are some factors to take into consideration.
What are the Factors that Affect Ad Spend Pacing?
Today, we’ll walk through the 5 main factors that affect ad spending, which are:
- Advertising platform
- Stage of the month
- Campaign age
- Holiday and ad schedules
- Campaign performance
In addition, we’ll talk about how each factor impacts your spend strategy (after you’ve done a PPC audit), so that you can achieve those goals, and even the stretch ones.
#1 Advertising platform
Understanding which platform or combinations of platforms you’ll be advertising on is an important factor that goes into play when you’re pacing your budget.
It’s true that platforms are similar in a lot of respects, each social media network has its own fair share of nuances. This is incredibly true in regard to the management of daily budgets.
- Google Ads: Google’s marketing products have expanded quite a lot over the last decade to incorporate new ad types and new platforms. The general structure for how your ads are served are the same across all: bid and ad relevance (quality). Budgets are controlled at campaign level and the spend is distributed across all ad groups.
- Facebook: Depending on the size of the audiences you are marketing to on Facebook, you’ll find out that daily budgets you establish usually come in wherever you intend them to. Facebook charges advertisers based on impressions in relation to performance and bid rather than a CPC model in tandem with performance.
- LinkedIn: LinkedIn places you in-charge of the relationship between your audience reception to the ad and your place in the auction. It’s important to note the differences in LinkedIn ad formats because some include both desktop and mobile placements without the ability to remove or add one individually. This affects the way ads are served and subsequently whether they’re capable of reaching their daily LinkedIn budgets.
#2 Stage of the month
One of the important things to take into consideration is which part of the month you’re starting to run paid ads. When you’re starting fresh, there are numerous delays with receiving or creating landing pages, assets, etc.
Understand what your overall budget is for the month, and how much time you left to hit that figure.
Take your overall spend target and divide it by the remaining number of days that remain in the month. It gets tricky because the pressure of time and spend affects your goals.
Depending on the infrastructure and the platform you’ve got in the account, you might be able to comfortably spend a higher amount for shorter periods of time.
In some cases, it can result in inefficiencies, especially if they’re new campaigns and the algorithms will need time to learn.
If the assets you need in order to launch your ads are delayed, and the majority of the month is lost, then it’s better to change your budget strategy from a monthly to a quarterly perspective. This way, you can spend less and make sure everything is running smoothly while you’re campaigns launch, and as you introduce new ones.
The takeaway? Acquire assets you’ll need and ready them before the start of the month.
#3 Campaign age
In most cases, businesses would want to launch new campaigns or make adjustments to pre-existing ones. This might leave many account managers with uncertainty on how they should pace their spending with new and unproven ads.
All in all, you need to assess the budget that you have, the time-frame that you need to spend that budget, and your desired goals associated with the new campaign.
#4 Holiday and ad schedules
As you build out your budget plan for any platforms, it’s wise to note any holidays that are present within the month. It’s wise to frontload the budget at the beginning of both months. This lets you pace ahead of your target as opposed to if budget was spread across the entire month evenly.
#5 Campaign performance
It can seem like a total no-brainer, but one of the primary considerations of how to pace your budget on a daily basis relies on how your campaigns are performing. When you’re assessing where to allocate your spend, make sure you observe 3 important components:
- Scalability: If audiences are driving a decent volume of results for lower costs than others, allocate greater portions of the daily spend there. The size of your audience, as well as, search volume play a part in this, so pay attention to those components.
- Funnel implications: What’s the value of the promotion you’re running? If it leads to direct sales, you’ll know how much more you can allocate towards a campaign to stay within your acquisition goals. If the ROI is more complicated to measure or the promotion is closer to the top of the funnel, and takes time to turn sales, use the best data you’ve got to set a target CPC and optimize from there.
- Performance & spend over time: If your campaigns aren’t new and have been running for a period of time, you can analyze the effect that different spend levels had on them. This indicates whether increase in spend would be detrimental to performance.
Check on Factors That Affect Ad Spend Pacing
Planning on figuring out how to pace your paid media spend is essential. But that doesn’t mean you should set up your ads and then leave before checking back next month. Expert PPC providers from experienced digital marketing strategies recommend that you keep an eye on performance, whether that’s through manually checking or running regular reports.