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Andrea Duffy-CabanaFebruary 26, 20252 min read

How to align your paid search budget with your marketing goals

Even though we're well into the year, or perhaps your fiscal year is just beginning, it's always the right time to ensure your paid search budgets are strategically aligned with your overarching marketing goals. Effective budget strategy is crucial for maximizing your ROI and driving business growth.

There's no one-size-fits-all approach, but these key tips from our digital marketing experts will guide you:

1. Leverage data-driven insights

Start with keyword research. Utilize tools like Google Keyword Planner to understand search volume and estimated costs for your target keywords. This data provides a foundation for informed budget allocation.

2. Analyze historical performance

Take time to review your performance. Scrutinize your past campaign data. Identify areas where budget could have been optimized, pinpointing opportunities for increased investment or cost savings. This historical analysis establishes a valuable baseline for future budget planning.

3. Conduct competitive analysis

Gather competitor intelligence. Employ tools like Spyfu, SEMrush, and SimilarWeb to gain insights into your competitors' spending strategies, including their targeted keywords. While you don't need to match their budgets dollar for dollar, this competitive landscape analysis helps you gauge your visibility and competitiveness within the market. 

4. Account for rising media costs 

Keep inflationary trends in mind and be realistic about increasing media costs. Maintaining a flat budget year over year will likely lead to diminished performance due to rising CPCs. A static budget means less impact for the same spend.

5. Prioritize testing and innovation

Make a dedicated test budget. This is where many businesses fall short. Allocate a specific portion of your budget for testing new campaigns, keywords, ad copy, and targeting strategies. This allows for experimentation and optimization, uncovering potentially high-performing tactics that might otherwise be missed. 

6. Approach platform recommendations strategically

Take platform recommendations with a grain of salt. While platform recommendations can be helpful, always validate them with your own data. Don't blindly accept suggestions, especially regarding budget increases or max CPCs. Test and refine to find the optimal thresholds for your business. 

Follow The 10-10 Rule

At Anteriad, we advocate for the "10-10 Rule" for successful paid search management. This guideline boils down to:

  • 10% for testing: Dedicate 10% of your budget to ongoing experimentation and optimization. This allows you to identify new opportunities and refine existing campaigns for maximum performance.
  • 10% annual budget growth: Increase your marketing budget by at least 10% year over year. This accounts for rising media costs and allows you to capitalize on growth opportunities.

The proof is in the performance

Our analysis of anonymized data from our managed accounts clearly demonstrates the impact of budget strategy. Clients who increased their search budgets year over year experienced corresponding revenue growth. Conversely, those who decreased budgets saw declines in both search performance and overall business revenue. This underscores the critical link between strategic budget allocation and business success.

YoY Spends & Revenue Difference

Ready to unlock growth through strategic paid search? Contact Anteriad today. Our team of experts can help you develop a data-driven budget strategy that aligns with your marketing goals and drives measurable results.

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Andrea Duffy-Cabana

Read posts from Andrea Duffy-Cabana.