3 Steps to Make Your Ads Budget Work Better
Key Takeaways
- Always Be Testing (ABT): Continually test ads, even during busy seasons, to gather actionable data.
- Apply the 70/20/10 Rule: Allocate 70% to proven campaigns, 20% to adjacent ideas, 10% to experiments.
- Test in Real-Time: Do not wait for the off-season to optimize; test when stakes are high for better insights.
What is the best time to change my ads campaigns?
Many marketers ask, “Is now the right time to adjust my ads?” The answer is clear and assertive: Yes, now is the right time to make changes. Waiting risks losing opportunities. You should test and optimize your campaigns all year round, even during your busiest periods.
When you test in-season, you gain data that reflects real customer behavior. When you test in the off-season, you prepare for scenarios that may not exist when demand peaks.
What is the Always Be Testing (ABT) approach in advertising?
The Always Be Testing (ABT) mindset means that you continuously experiment with ads to improve them. Businesses that apply ABT outperform competitors because they use real-time data to adjust strategies instead of guessing. You should regularly test your ad creatives, audience targeting, placements, and bids.
In other words, testing is not optional. It is an ongoing requirement for sustained advertising success. You can also phrase it as: keep experimenting at all times, or never stop testing your ads.
How should I split my advertising budget effectively?
The 70/20/10 rule is an effective budget allocation strategy:
- 70% of the budget goes to proven campaigns that consistently deliver results. This keeps your return on ad spend (ROAS) high.
- 20% of the budget explores adjacent ideas. These are small variations of what already works, such as targeting similar audiences or minor creative tweaks.
- 10% of the budget is for completely new, high-risk experiments. This is where you discover potential breakthrough strategies.
This approach ensures you maintain performance, explore new opportunities, and innovate responsibly. It balances risk with reward.
Why is testing during peak seasons better than waiting for slow periods?
Many businesses delay changes until the off-season, thinking it’s safer. However, testing during peak times gives more accurate insights. Off-season testing may yield irrelevant results because consumer behavior and competition change between seasons.
Testing when demand is high lets you optimize for real-world conditions when it matters most. You could also say: optimize during your busiest season, not after it; or improve ads in real time, not just when things are quiet.
How can I implement these steps consistently throughout the year?
Follow this repeatable process to make your ads budget work smarter every month:
- Audit what works: Identify your best campaigns. Invest more in those proven strategies.
- Explore adjacent opportunities: Try variations and extensions of your current winning tactics.
- Test small and often: Run low-risk experiments even during peak seasons. Use data to adjust quickly.
By applying these three steps, you avoid stagnation and keep improving your campaigns year-round.
TL;DR: How do I make my advertising budget more effective?
- Test ads continuously using the Always Be Testing (ABT) mindset.
- Split your budget using the 70/20/10 rule for stability and innovation.
- Test during busy seasons to get relevant, actionable data.
- Audit, explore, and experiment all year to maximize return on investment (ROI).
Pros and Cons of Testing Ads in Peak Season
| Pros | Cons |
|---|---|
| Real-time, relevant data | Higher stakes for mistakes |
| Optimize when it matters most | Less room for large-scale experiments |
| Immediate feedback and ROI impact | Requires careful monitoring |
Glossary of Key Terms
- ABT (Always Be Testing)
- A strategy where you continually test and optimize campaigns rather than wait for specific times.
- 70/20/10 Rule
- A framework for budget allocation: 70% on proven strategies, 20% on adjacent improvements, 10% on new experiments.
- ROAS (Return on Ad Spend)
- A metric to measure the revenue generated for each dollar spent on ads.
Frequently Asked Questions about Advertising Budgets
When is the best time to test my ads?
The best time to test is now. Testing during your busy season provides the most accurate and relevant data.
How much of my budget should I dedicate to testing?
Allocate about 10% of your budget to testing new ideas, 20% to adjacent improvements, and 70% to proven strategies.
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