How to Convince Your Clients to Increase Ad Spend
As an agency, you always want to find clients that are willing to put the necessary resources towards a project. But oftentimes you’ll find that clients have a rather different goal in mind when it comes to the allocation of money towards their ad budget. More often than not, you’re looking for a client that knows that they want and are ready to pay the price, but they’re looking for the cheapest option with the best outcomes. This dynamic can often make it difficult to convince PPC clients to increase their ad spend, but that doesn’t mean it’s impossible.
If you’ve been considering asking a client to raise their PPC ad spend, then you’re no doubt aware of that conversation’s difficulties. Luckily, we’re no stranger to having that conversation, and we’ve got a few useful tips that can help you convince your PPC clients to increase their ad spend. In this article, we’ll explore the following seven tips to ensure that you’re receiving the financial support you need to provide your clients with the best results possible:
- Compare Their Budget against a Competitor
- Show how Current Budget is Too Small for Effective Testing
- Explain how Increased Spend Enables You to Use More Channels
- Show Them That Results Increase with Scale
- Provide Examples of Improving Conversion Rates
- Use Proper Tracking to Provide Evidence
- Create Ambitious Goals
Compare Their Budget against a Competitor
Everyone has a bit of a competitive streak in them, and you can use this as a perfect selling point for your next ad campaign spend increase discussion. If a client has been on the fence about beefing up their PPC ad spend, showing them that they’re spending significantly less than competitors may encourage them to start getting serious about their investment.
In the chart below, we are able to use a PPC competitive intelligence tool like Spyfu to get an estimate on what Google, LinkedIn, and Facebook are spending on paid search.
In April 2021
- Google – 705K
- LinkedIn – 537K
- Facebook – 298K
If your client was LinkedIn, you can show them Google is outspending them and they should think about increasing SOV (share of voice or market share) by increasing their ad budgets.
Before you attempt this, make sure you have clear information about their competitor’s ad spend. You wouldn’t want to go into a discussion with the goal of having your client increase their PPC budget only to show that they’re getting a significantly better ROI than their competitors.
2. Show how Current Budget is Too Small for Effective Testing
A huge part of any successful PPC campaign is diligent and persistent split testing. But in many cases split test are unable to achieve statistical significance. This is often a result of a budget that is too small to be effective. In order to run split tests that show anything statistically significant, you need to have ample budget that allows you to effectively compare one campaign strategy to another.
In Google Ads, you can click the graph icon under in the all campaigns tab
This will open up their budget forecasting tool which will show you projections of clicks at different ad spend levels.
Giving clients the heads up that effective split testing costs money can help them make more informed decisions regarding their ad spend, and is likely to lead to your clients spending more in order to receive more useful information. This can be an especially effective strategy in the tech fields where data is routinely treated as king.
3. Explain how Increased Spend Enables You to Use More Channels
While basically everyone uses Google and Facebook, there are millions of people who choose to use other channels in their day to day internet use. Your client wants to reach these potential customers just as much as you. Explaining to clients that an increase in ad spend can directly lead to higher exposure without having to develop an entirely new ad can sound like a great value proposition. Let your clients know that increased ad spend allows you to access more channels for an easy way to convince them to add a little more money to their campaign.
4. Show Them That Results Increase with Scale
In cases where you’ve spent some time with a client and they’ve grown complacent about their ad spend, you may need to dip into the data archives. Show them how every time they increased their budget they received improved results and more conversions. This is often a great way to jolt complacent clients into action as they always want their campaigns to be more effective. You can even increase the impetus on them by showing examples of how static ad spend often leads to decreasing clicks.
In the graph below, you can see that the number of conversions closely follow the trend line of clicks and ad spend. You can easily show this to your client and use this as a way to increase their ad spend in order to drive incremental conversions.
5. Provide Examples of Improving Conversion Rates
Building a bit on our last tip, you can often encourage clients to boost ad spend little by little, but asking for a big infusion of capital can be a tough sell. To do this, you’ll need to provide evidence of how conversion rates have increased over time and show that when ad spend increased by higher percentages, so too did their results. Proving the correlation between the results a client receives and the amount they were willing to spend can often be an effective way to jump-start a PPC ad spend increase conversation.
As you can see in the chart below, the conversion rate is pretty high. By increasing the traffic, your client could potentially get more conversions.
6. Use Proper Tracking to Provide Evidence
Today, we live in a data-driven economy. As a result, you’ll want to provide your clients with evidence of your value whenever possible. By having an effective tracking system in place, you can show clients how you’ve been able to increase their success through your efforts. In many cases, the evidence you collect is going to be crucial whenever you want clients to increase their ad spend.
7. Create Ambitious Goals
No one likes complacency, and this is doubly true when a client is handing you a significant sum to achieve results. Building up a big presentation with some seriously massive ambitious outcomes can be a huge asset in the meeting room with a client. Showing that you have goals for their organization, and not just your own pocketbook, can provide clients with the evidence they need to increase their own spend. Ultimately this will increase both their success and yours.
Make PPC Ad Editor a Part of Your Client Relationship Strategy
Getting clients to increase their ad spend is just one part of your relationship with them. At PPC Ad Editor, we help people like you show your vision to clients in a compelling and engaging manner, all while saving you time. Take some time to explore our various resources and see how our tools work to learn how we can help you engage your clients and save money at the same time!
