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5 Reasons You Should Increase Your Ad Spend for Better Results
You know the saying: “You’ve got to spend money to make money.”
If you run paid advertising for your business, you’ve seen firsthand that it’s true. Visitors who click on your website through a paid search ad are 50% more likely to become customers, and actually buy something.
Clearly, paid search is powerful. But, can you make it even more powerful? Absolutely.
One smart way to quickly improve PPC results is by increasing your ad spend. Sound counterintuitive? Don’t worry. We explain everything below.
Here are five compelling ways boosting your ad spend leads to better results.
1. Go for volume.
Are you happy with your current CPC and conversion rate? Wouldn’t you be happier if you could maintain those metrics, while amplifying your returns?
To get more volume, you need more budget. In other words, if your campaign is already getting decent results, then it’s time to double down.
Of course, paid search algorithms are designed to target the people most likely to engage with your ad. So, when you increase your volume, you may notice the CPC rise slightly. Even so, as long as you keep an eye on things, you can throttle as necessary to maintain your CPC within a desirable range.
The key here is that with more volume, you’re finally able to reach more of your target audience. That means you’ll reach more of the people who would have clicked on your ad to begin with, if only you had been bidding to reach them.
2. Stay competitive.
Not convinced you should goose your budget just yet? If you’re not ready to toss aside the security blanket of a solid CPC and CTR, reassure yourself with some competitive research.
What’s your competitor’s budget? In the world of PPC, if someone’s outspending you, they’re likely outbidding you—and stealing away your potential customers.
While you won’t be able to log in directly to their paid search accounts (at least not without a hacker on the payroll), you can get a good guess for their overall spend with SEM tools like SpyFu, iSpionage, and SEMRush (pictured below).
Many of these tools even show you the specific copy they’re using in their ads, along with other juicy insights like their top competitors, top keywords, and how their spend and traffic have trended over time.
3. Grow your target audience.
While you’ve got your eye on your competitors, take a look to see where else they’re spending.
Are they investing in any channels you’re not? While seemingly vast and omnipresent, Google’s Search Network is only one part of the internet your customers access.
To reach your entire target audience, you’ll need to get in front of them on other networks too. Is it time to increase your spending on other channels, like Pinterest, Instagram, or Facebook advertising? What about Amazon, Bing, or Google Shopping?
You have to be just as present as your competitors on all the channels your audience is using. Otherwise, you’re virtually handing them off to the competition.
Don’t forget that more competition leads to higher bids. While this does mean you may have to pay slightly more (that’s what the increased spend is for), it also means that if you neglect from advertising on any one channel, you’re not only giving your customers away to your competition; you’re giving them away for a very cheap price.
Think beyond strictly channels here. How does your competitors’ spend on mobile vs. desktop compare to yours?
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4. Create room to experiment.
Speaking of the mobile vs. desktop divide, that can be a prime thing to test in your campaigns.
What’s that? You’re not split testing your ad campaigns?
Strategic split testing is essential to all those incremental changes that become big wins in the long-run. It’s the single best way to truly optimize your paid search campaigns.
Even if you are already testing your campaigns, are you adequately testing them for statistical significance? To be confident in a split-test result, you need to let the campaign run long enough so it can reach enough eyeballs.
For that to happen, you need to have enough budget. When you back up your tests with a sufficient budget, you can quickly generate enough traffic to land on an answer confidently: variant A is better than B, or vice versa.
Remember: It’s not always the ad that needs fixing. Sometimes it’s the landing page.
5. Set new goals.
To grow your business, you need to be always iterating, always moving. You know that. It’s why you invest in customer feedback, focus on developing upsells or new product lines, and explore new marketing avenues.
You should take the same approach with your digital advertising. How else can you amplify your advertising campaigns to boost business? Can you create new landing pages or campaigns to target different niche customers? Have you seen what paid search can do for your video content?
To feel good about increasing your ad spend here, make sure you tie these new goals to specific KPIs. Then, as the results come in, you can optimize spend accordingly.
Increase Your Spend, Increase Your ROI
Increasing your ad spend isn’t about throwing money at the problem just for fun. We’re talking about strategically increasing your spend to achieve real results. When you have the right partner managing your paid search campaigns, increasing your spend is a no-brainer.
Discover how Your Marketing People can be that partner for your business. We’ve helped clients double their conversion rate, while slicing their CPL in half. We’ve increased sales by 87% by adding more channels into the mix. Let’s chat about how we can drive paid search wins for your business.
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Our team of experts focuses on what matters most to your brand, whether that’s cost-per-click, conversion rate, etc. Contact us today for a free consultation!
