Let’s Talk Ad Budgets

Ad budgets can be tricky, we’ve all felt it

So here is our advice on how to understand and optimise your ad budgets:

The plateau reality:

• Most accounts reach a performance plateau around 6 months
• This is normal and expected due to market dynamics
• Represents the maximum return from current budget level
• Often mistaken for poor performance or lack of optimisation

Key factors creating the plateau:

• Online auction dynamics
• Market competition
• Cost per click limitations
• Geographic targeting restrictions
• Available search volume

Four strategic options when you hit the plateau:

Increase budget:

• Most straightforward solution
• Maintain same ROI at higher volume
• Requires available capital
• Must ensure margins support increased spend

Refine & focus:

• Tighten geographic targeting
• Focus on best-performing products/services
• Concentrate budget on highest-converting campaigns
• Optimise for specific high-value segments

Maintain & diversify:

• Accept current paid media performance
• Invest in other marketing channels:
  • Email marketing
  • Social media
  • Content marketing
  • SEO

Pursue marginal gains:

• Make incremental optimisations
• Stay current with platform changes
• Analyse new search terms
• Test new features and capabilities

The four pillars of digital traffic:

• Paid (Advertising)
• Owned (Direct/Return visitors)
• Earned (SEO/Organic)
• Nurtured (Email/Social)

Remember: The key is recognising when you’ve hit your plateau and then making strategic decisions about which path forward best suits your business goals and resources.

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