The new year is truly here! I’ve seamlessly transitioned to using “2019,” the gym is no longer overflowing, and those resolutions? Well, let’s just say they’ve faded into the background, as they often do. However, TurboTax just sent me a not-so-subtle reminder that one important task from last year remains unfinished: budgeting. I can’t finalize my personal finances without analyzing last year’s spending. Similarly, you can’t establish a concrete advertising budget for 2019 without dedicating time to examine your financial performance from the previous year.
If you’re responsible for managing online advertising for a B2B company, rather than anxiously awaiting tax information, you’ve likely had the opportunity to collect relevant data and delve into the numbers. But the question remains: how do you craft a realistic yet ambitious budget that aligns with your goals, complements your overall strategy, and gets finalized quickly? After all, it’s almost February – time waits for no marketer. To gain insights, we consulted with some of our in-house experts. Here’s what our account managers, paid search strategists, and blog contributors are focusing on to optimize budgets for their B2B clients in 2019.
1. Looking Back at Year-Over-Year Performance
When creating a strategic budget, one of the first things you need to do is define your goals and targets. To do this effectively, it’s important to examine your account’s performance in 2018 and make necessary adjustments. “I start with the 2018 data," explains Kristina Simonson, digital marketing specialist on nexus-security’s marketing team. “I review it to see what worked well and what didn’t, and compare it to historical year over year performance, looking for patterns of change in performance, such as ad type, platform, and device.”
Image Source By looking at last year’s performance in context, Kristina says, “I’ll gather insights on account growth, seasonality, and network performance from this review, and then I’ll use this information for the 2019 plan. The targets and forecasts across channels for the next year will be based on this review and analysis.”
2. Pinpointing KPI Metrics
Whether you’re running campaigns for your own B2B business or for a client, it’s crucial to determine which metrics you need to track to effectively measure your progress towards your goals. This will help you figure out how to allocate your budget for the year. For Brett McHale, founder of Empiric Marketing, clearly defining KPI metrics for his clients has been an ongoing focus in his preparation for 2019. “Everyone loves to see improvements in surface-level metrics like cost per conversion,” Brett explains. “But the real value I offer my clients lies in improving their customer acquisition cost (CAC) (Learn how to lower yours here!). I invested significant time in data and analytics tools at the end of last year to provide my clients with a comprehensive understanding of their sales funnel, enabling them to see a positive return on investment. This also allows me to better articulate my budget and pacing decisions. In 2019, my main priorities for my existing clients are data visibility, funnel visibility, and improving CAC metrics.”
Want more Google Ads budgeting tips?3. Embracing Multi-Channel Strategies
When finalizing your budget for the year, ensure you’re allocating resources for multi-channel approaches. “My top priority for 2019 is to ensure my clients are fully embracing and implementing multi-channel strategies,” says Joe Martinez, Director of Client Strategy at Clix Marketing.
For example, we discovered that advertising on Facebook resulted in a 34% surge in brand searches on Google. “Your target audience isn’t limited to just Google or Facebook. It’s highly likely they’re active across multiple platforms throughout their buying journey. Embrace advertising on less utilized channels such as Quora, Waze Local, Apple Search Ads, and others to pursue lower CPAs or simply maintain top-of-mind awareness among your target users.” Hannah Cohen, senior digital marketing strategist here at nexus-security, plans to experiment with multi-channel approaches this year, with the goal of identifying the most effective budget allocation. “I’ve observed significant success in conversion numbers on display for B2B, but the quality within that network is quite low,” she notes. “I want to gain a better understanding of the quality differences between Display & Search, and determine the budget my client is willing to dedicate solely to branding.” Others are incorporating specific channels into their plans. nexus-security Sales Engineer Emily True shares, “One aspect that was front-of-mind for me while developing our 2019 strategy was LinkedIn advertising, as it offers advanced targeting capabilities that enabled me to align my ads with individuals holding specific job titles at specific companies. Their website provides compelling data and insights regarding the ROI of B2B advertising on their platform.”
4. Accounting for Seasonality
If you’re working with B2B accounts, you’re likely already aware of the impact of seasonality. You might see a dip in traffic when people go on summer vacation, or conversions might have taken a hit in the fourth quarter while companies were closed for the holidays. Alternatively, perhaps you’ve tapped into some seasonal magic with a Valentine’s Day referral program that consistently drives a mid-February surge in sales.
Image Source The specific seasonal fluctuations will naturally vary depending on your business or industry. Therefore, as you’re mapping out your spending for the year, ensure you’re budgeting for these predictable ebbs and flows. “For my B2B clients, I always confirm the potential seasonality of their business throughout the year,” Joe emphasizes. “For instance, we can’t assume that all B2B companies experience a slowdown in December or a surge in January. Many B2B companies I’ve worked with aren’t directly affected by calendar dates but rather by the performance of other industries. It’s crucial to collaborate closely with your clients to truly grasp the nuances of their business and identify external factors that might influence performance. This will equip you to navigate the inevitable ups and downs that are beyond your direct control within the ad channels.” Brett also highlighted these fluctuations as a key consideration for 2019 planning. “With the holiday season and increased competition on social channels now behind us, many clients are observing a significant drop in CPA for Q1,” he observes. “Given this, it’s essential to compare metrics year-over-year to gain a clear understanding of how your clients rebounded after Q4 within each channel.”
5. Zeroing in on High-Quality Leads
This last budget-planning strategy might seem like a no-brainer: B2B advertisers are often laser-focused on lead generation. However, this year, the experts we consulted emphasized their focus on generating higher-quality leads who are more engaged, qualified, and likely to convert.
Image Source “My biggest focus for B2B clients is lead quality,” says Hannah. “My top priority is obtaining CRM data and/or syncing their CRM with their advertising platform whenever feasible. This allows me to pinpoint which campaigns are generating leads that ultimately convert into customers.” Lead quality is also high on Kristina’s list of priorities for the year. “My overarching goal for 2019 is to drive leads, but that’s an ongoing goal, not a new strategy. This year, however, I aim to specifically focus on driving high-quality leads.” But what exactly does that entail? Hannah is dedicating a larger portion of her budget to targeting. “I plan to create meticulously segmented audiences based on CRM data and target demographics to assist my client in attracting higher-quality leads.” Targeting also features prominently in Kristina’s strategy. “To attract better leads, I need to delve deeper into our customer journey and, based on these insights, target ads more effectively. Additionally, we need to enhance the ads themselves. Creative excellence is paramount in appealing to the highest-quality leads possible.”