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How Much Should I Spend on Paid Media - Why It's Worth the Investment
May 9, 2023 - By Hawke Media

How Much Should I Spend on Paid Media: Why It’s Worth the Investment

PPC can be a quick solution to your marketing woes. When done right, paid media delivers fast and sustainable results. However, brands must be willing to invest in their paid media budget. When done right, PPC drives traffic, generates leads, and increases revenue. Just know that collecting data, adjusting, and testing takes time and budget, plus some elbow grease and persistence.

While some may be hesitant to invest heavily in paid media and PPC budgets, it’s essential to consider their long-term benefits. There are several reasons why a big up-front investment is essential to your success in paid search and paid social. 

1. Faster Data Collection

One of the most significant advantages of investing in paid media budgets is faster data collection. With a higher budget, you can conduct more A/B tests on audiences, copy, creative, and so on, allowing you to gather insights and learnings quickly. With this data, you can make better-informed decisions that will lead to better marketing results in the long run.

2. Competition in Ad Auctions

PPC advertising relies on auction bidding, which means that the higher you bid, the greater the chance of “winning” top-tier placement. This is especially pertinent with paid search ads, even more than paid social. You can outbid your competition with a higher budget, leading to more ad placements and increased visibility. 

Most brands that come to Hawke Media are looking for new customers with paid media ads. Sure, it’s a win to convert a higher percentage of those already in the funnel or to increase the returning customer base, but that’s not the objective. With increased visibility, you’ll be able to reach more new prospects and drive more traffic to your website. This will increase the number of buyers in your funnel at every stage. 

3. Increased Brand Awareness and Visibility

Investing in PPC budgets can increase your brand’s awareness and visibility. PPC has plenty of hard data that you can present to executives and stakeholders. You can use Hawke.AI to benchmark those metrics against the competition. Since PPC always delivers tangible data, it behooves marketers to still drive home the branding effectiveness on top of the hard data they get from analytics platforms. The only way to increase that visibility is with funding.  As more people see your ads, you’ll increase brand recognition and loyalty.

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4. Full-Funnel Growth Solutions

Paid media campaigns can enable you to reach potential customers at different stages of the customer journey. Creating campaigns targeting users at each stage of the funnel can create a seamless customer experience, leading to increased conversions and customer acquisition.

So many clients come to Hawke Media running just one standard paid media campaign. The results are inconsistent and usually lackluster. By running multiple campaigns for every stage of the journey, you’ll stabilize your results and be able to funnel resources into the most relevant buckets. That’s not possible without upfront funds. 

5. Stronger Performance

Finally, you can improve your overall performance by investing in paid media budget. Paid search and social will work in tandem, retargeting customers to move them down the funnel. You’ll quickly see that a rising tide lifts all ships, but it’s impossible without funding in all quadrants.

With more data, you can make better ad placement, targeting, and messaging decisions, leading to more conversion and revenue in the long run. With a higher budget, you can also stay ahead of your competitors, ensuring you’re always at the forefront of your industry.

Find Your Floor 

The ultimate goal of all of this is to find your floor. How much would you spend on paid media advertising if your ads were fully optimized? Obviously, that number would be as low as possible. You will find your floor faster – and that floor will be lower – by spending more than the “minimum” it takes to get by in your PPC program. 

Don’t Do the Minimum to Get By 

Too many brands treat paid search and social budgets with the minimum budget to get by, and then they’re disappointed in the results.. By staying ahead of the curve and continually refining and resourcing your campaigns, you’ll be able to reach new heights in your marketing efforts and achieve stronger results in the long run.

If you’re not sure that more funding is the solution because you’re not thrilled with your current results, get an expert on your side today. Hawke Media will offer a free consultation to get you off to the races. See the difference a real investment in your paid media can make. 

We’ve got experience bringing brands so much PPC success that they invest more in their paid media budget. Check out what we did at Barstool Sports and Beach Bunny.