When it comes to determining ad spend for your Paid Search campaigns, it’s easy because you can set a budget and adjust as needed, almost in real time, as you see the results roll in. But with Display Advertising, it’s a little more complicated.
If you are just dipping your toes in Display, you want to generate enough impressions so that you can get meaningful data. You also want to test out different networks to see what works. A lot of networks have minimum buying requirements, ranging from $5k to $15k per month. However, if you are spending less than $30k per month, usually this amount is not high enough to generate a meaningful response that gives you enough data.
In addition, you have to consider your targeting options. The more targeting that is layered on your campaign, the higher the CPM will be. Also, if the ads are too highly targeted you won’t get enough conversions.
It can be a challenge to calibrate the appropriate level of spending to generate the results you need while supporting your other marketing and advertising initiatives. The bottom line is that you need to spend enough to drive conversions and to generate meaningful data that will allow you to determine the appropriate level of spending moving forward. This is only possible through testing and careful observation.
For support in determining if Display is a tactic you should explore for branding purposes, feel free to contact a Geary LSF representative, or for more information regarding Paid Media best practices, download the FREE Whitepaper today.