How To Optimise Your Paid Media Budget

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(This is the transcript from our new video so it may not read as well as a normal blog post would)

Hi guys. Steve Harris, the head of paid media at Koozai.

I’m just gonna talk about a few ways how to optimize your paid media budget and use it in a more effective and efficient way.

The first way, really, is to pause what isn’t performing. Have a look at your keywords or your ads or your campaigns, your ad sets, your ad groups, and just see what isn’t performing.

What isn’t driving conversions? What has a high CPA? What is bringing your account performance down? Once we’ve looked at those, we can make a decision. We can perhaps pause those keywords that aren’t performing or reduce the bids on the keywords because they’re contributing to a higher CPA or a lower ROAS. So, by looking at that, we can see what isn’t performing and how we can make better use of that budget.

This leads on to the second point, and the second point is to push more through the areas that are performing. Push more budget on the keywords or the ad sets or the ad groups that are performing well and that are contributing to a higher ROAS or a lower CPA. That means that we can spend more budget on the areas that are working, we can improve overall account performance. There’s lots of metrics like impression share that we can look at to see the opportunities and where we can perhaps push those keywords more.

The third point is to focus on quality score. Now, this is more for search campaigns. And the quality score is a metric that joins up the keyword to the ad to the landing page, and it shows how relevant they are to one another. By having a higher quality score, we can benefit from cheaper CPCs. Now, cheaper CPCs mean that we will get more clicks within our budget, and more clicks within our budget is likely to lead to more conversions. So it’s really, really important to focus on quality score and make sure that we are maximizing quality score in order to reduce our CPCs and increase our clicks and conversions.

The fourth one is more for paid social campaigns and it’s about updating the ads regularly. There is a thing called ad fatigue and the ads do wear off on the users that are seeing the ads so it’s really, really important to refresh them regularly. Make sure that we are updating that ad copy. Not just the images but also the messaging, and yeah, optimizing towards a higher CTR. Once the ads start to fatigue, our costs will increase, therefore, we’ll get less clicks within our budget, they will cost us more, our performance will diminish.

So it’s really, really important that we refresh the ads regularly in order to use that budget in the most effective and efficient way. Finally, we need to analyze the stats regularly and repeat that process. So we need to look at what is performing and see if we can push more budget through those areas. Look at what campaigns aren’t performing. Can we reduce the spend on those? And really, just assessing what our changes have done, whether it’s improved overall account performance, and just repeat that process on an ongoing basis.

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