Promoting your business online in 2021 – Analyzing and Budget adjustments
Welcome back to promoting your business online, our ongoing series where we provide helpful tips for your online advertisement campaign during the holiday season. We arrived at the last days of October and need to get ready to make our first real adjustments. At this point it is very much the same for online shop owners in the US and Canada. The big ticket items in November are Black Friday and perhaps Cyber Monday, followed by the holiday season in December.
In our article “First Analytics” we talked about the questions we will have to ask ourselves. We also established our base line and can now use these information for future decisions. Today we have to prepare for the first real adjustments and have to make some hard decisions. Our tasks are:
- Finding underperforming platforms and decide what to do
- Adjusting or eliminating underperforming target groups and markets
- Increasing the budget to start the first push
The first task will relate to the questions we asked earlier. To refresh, we asked ourselves how well is a platform performing and used traffic, purchases and abandoned shopping carts as our guiding factors.
The bottom line is the question if a platform has returned our investment. So if we have invested $300 in September for platform A, we like to get at least $300 back. Ideal would be a return between 20% to 30% over the investment. However, it is possible you have not seen any sales from the ads in September due to the low budget or nature of the items sold on the store. We like you to keep that in mind. September is designed to start the season, establish a baseline and have the algorithm working in our favour.
Because we started all our advertisement with the same budget in September we can very easily compare each platform based on performance. Our baseline will also guide us for further adjustments later in November. Two more articles we like you to keep in mind are:
- Calculating Online Advertisement Budget, where we were calculating our budget.
- Distribution Online Advertisement Budget, where we decided where to invest our ad budget.
The two articles we published in August will come in handy again. Just to refresh your memory. In those articles we talk about calculating a budget for different platforms, how to invest in platforms that matter and what the strategy for the season for each platform can be. We started with a low budget in the beginning, to kick off the season, get some baseline information and help the algorithm. We then planed to increase the budget slightly and invest heavily at the end.
With the baseline established in September we have now a better idea which platform is performing well and which is not giving us a good return. We start by removing taget groups or markets that do not perform well. For example, if we are not getting any traffic nor sales from Region A we can assume this region is not performing in our favour. Another indicator is the average time spend on the shop. If visitors from Region B are only on the store for a few seconds might indicate the interest is low. Those regions need to go onto our ignore list to make room for traffic from regions with higher sales numbers, traffic and time spend on the website. We can go even further and look at other factors, but regions is in most cases the easiest to adjust.
Our second step is to slightly increase our budget. We like to refer back to the budget calculation and distribution posts we mentioned earlier. Based on your strategy you may have already increased your budget slightly by mid October or have waited and need to increase the budget by the end of October, after making the target group adjustments of course. The slightly higher budget will be needed to help with a push at the end. The next adjustment will be right before Black Friday and will stay that way until the end of the season. But we will have a few more posts for you ready by then as reminder.
Your tasks for now are analyzing underperforming platforms and consider removing them form your campaign. Use the budget designated for that platform to strengthen the platforms that perform better. If your social media representation is strong you can easily invest more in Google ads, if you feel ads on Social Media are still necessary keep them. The budget you assigned in the beginning of the season should lead you to more sales. In our experience the larger numbers will come in November and December, if you had already sales now you will feel more confident and have more datapoint to work with. If not and you feel an extra pair of eyes might come in handy, give us a call.
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