7 Effective Strategies for Managing Your Ad Spend in 2024

Advertising is one of the most powerful ways to reach your target audience and grow your business. However, advertising can also be expensive, especially if you don’t have any strategy in place for managing your ad spend. How do you know how much to invest on ads, and how do you measure the return on your investment?

In this article, we’ll show you how to measure return on ad spend (ROAS), what factors influence ROAS, and how to optimize your ad budget for 2024. We’ll also share seven effective strategies for managing your ad budget in the next year, based on the latest trends and best practices in digital marketing.

What is Return on Ad Spend (ROAS) and How to Measure It?

Return on ad spend (ROAS) is a metric that measures how much revenue you generate for every dollar you spend on advertising.

ROAS is a useful way to evaluate the effectiveness of your advertising campaigns and compare them with other marketing channels. However, ROAS is not the only metric you should consider when managing your ad budget. You should also look at other factors, such as:

• Your business goals and objectives
• Your target audience and their behavior
• Your industry and competitive landscape
• Your product or service and its value proposition
• Your customer lifetime value (CLV) and acquisition cost (CAC)

These factors can help you determine how much you can afford to spend on ads, and how to allocate your budget across different platforms, channels, and campaigns.

7 Strategies for Managing Your Ad Spend in 2024

Now that you know how to measure ROAS and what factors influence it, let’s look at some of the strategies you can use to optimize your ad budget and maximize your ROAS in 2024. Here are seven tips to help you manage your ad budget effectively:

1. Use Contextual Advertising to Manage Ad Spend

Contextual advertising is an advertisement that appears on pages related to the subject of your product or service. For example, if you sell shoes, your ads might appear on websites about fashion, sports, or travel. 

Contextual advertising is expected to become even more valuable for marketers in 2024, as users perceive contextual ads more positively than other forms of advertising, and they are more likely to click on ads displayed in the context of their interests.

To use contextual advertising effectively, you should:

• Create a customer journey map to know your target audience and their interests, needs, and pain points
• Choose relevant keywords and topics for your ads
• Use platforms that offer contextual advertising, such as Google Ads, Bing Ads, or Facebook Audience Network
• Test and optimize your ad copy, images, and landing pages for relevance and conversion

2. Use Machine Learning and Artificial Intelligence

Machine learning and artificial intelligence (AI) technologies are playing an increasingly significant role in targeted advertising. 

In 2024, many companies will use machine learning algorithms to analyze their customer behavior and determine the most effective targeting strategies. Additionally, AI will be used to create more accurate consumer demand forecasts and optimize ad campaigns.

To use machine learning and AI effectively, you should:

• Collect and analyze data from your customers, such as their demographics, preferences, and actions
• Use platforms that offer machine learning and AI features, such as Google Ads, Facebook Ads, or LinkedIn Marketing Solutions
• Experiment with different targeting options, such as audiences, locations, devices, or times
• Monitor and adjust your ad performance based on the insights and recommendations from the platforms

3. Use Social Media Advertising

Social media will continue to be a crucial channel for targeted advertising in 2024. However, to achieve success, you must adapt to the constantly changing algorithms of social platforms for managing your ad spend in 2024. 

In 2024, advertising on social media will become more interactive and personalized. Moreover, there will be increased opportunities for product and service promotions on social media, such as in-platform shops and online consultations.

To use social media advertising effectively, you should:

• Identify the social platforms that your target audience uses and engages with
• Create engaging and relevant content for your ads, such as videos, stories, or live streams
• Use platforms that offer social media advertising, such as Facebook Ads, Instagram Ads, or TikTok Ads
• Leverage the features and tools that the platforms provide, such as shops, catalogs, or chatbots

4. Use Video Advertising for Managing Your Ad Budget

Video advertising will continue to grow in 2024 and will become a more crucial tool in targeted advertising. This is because video ads have a more significant impact than other forms of advertising, such as banners or text ads. 

Furthermore, social platforms like Facebook, Instagram, and TikTok will increasingly promote the use of videos in advertising.

To use video advertising effectively, you should:

• Define your video marketing goals and objectives, such as brand awareness, lead generation, or sales
• Create high-quality and engaging videos for your ads, such as testimonials, tutorials, or demos
• Use platforms that offer video advertising, such as YouTube Ads, Facebook Video Ads, or TikTok Video Ads
• Optimize your video ads for different formats, such as vertical, horizontal, or square

5. Use Dynamic Advertising for Managing Your Ad Spend

Dynamic advertising is an advertisement that changes based on the user’s behavior, preferences, or context. For example, if a user visits your website and views a product, your ads might show that product or similar products to the user on other websites or platforms. 

Dynamic advertising is a powerful way to increase your ROAS, as it allows you to deliver personalized and relevant ads to your potential customers.

To use dynamic advertising effectively, you should:

• Install tracking pixels or codes on your website and landing pages
• Use platforms that offer dynamic advertising, such as Google Ads, Facebook Ads, or Criteo
• Create dynamic ad templates and feed files for your products or services
• Segment and target your audience based on their behavior, such as website visits, cart abandonment, or purchases

6. Use Influencer Marketing for Advertising on a Budget

Influencer marketing is a form of advertising that involves collaborating with influential people who have a large and loyal following on social media or other platforms. 

Influencer marketing can help you increase your brand awareness, credibility, and trust among your target audience, as well as drive traffic and conversions to your website or landing pages.

To use influencer marketing effectively, you should:

• Identify and research the influencers who are relevant to your niche, industry, and audience
• Reach out and negotiate with the influencers who match your criteria and budget
• Provide the influencers with clear guidelines and expectations for your collaboration
• Track and measure the results of your influencer marketing campaigns, such as impressions, clicks, or sales

7. Use Pixage.io to Track and Manage Your ROAS

Pixage is a platform that helps brands make the best of their ad budget by unifying all the customer interactions and giving them data for each customer touchpoint. 

Pixage tracks, monitors, and analyzes all the customer data from different sources, such as websites, social media, email, or SMS. Pixage.io then provides insights and recommendations on how to optimize your ad campaigns and increase your ROAS.

To use Pixage effectively, you should:

• Connect your data sources and platforms to Pixage.io
• Explore the dashboard and reports that Pixage.io provides
• Implement the suggestions and tips that Pixage.io offers for managing your ad spend

Conclusion

Managing your ad budget can be challenging, but it doesn’t have to be. By following these seven simple strategies, you can optimize your ad spend and maximize your ROAS in 2024. 

Remember, the key to successful advertising is to offer a memorable, valuable, and deliverable promise to your customer. And with Pixage, you can do that easily and effectively.