If it feels like your digital advertising provider is always asking for more budget, there’s a reason. Budget is one of the main factors in determining your market share online.
The good news is you don’t always have to increase your ad spend to capture more of your market. There are ways to balance your budget and maintain market share, and if you do increase spend, make the most of each marketing dollar.
Digital Market Share Explained
When we talk about market share and digital advertising, what we’re really talking about is Search Impression Share (SIS). SIS is calculated based on the number of times a user saw your ad versus the number of times you were actually eligible to show one.
Essentially, SIS represents how much of your total market is seeing your ads. For example, 90% SIS means your ad is showing for 90% of relevant searches that occur. Heavy equipment and material handling dealerships should aim for +80% SIS.
Maximize Market Share Without Maxing Out Your Budget
If you have a set budget and want to maximize your market share, you need to be flexible with your geotargeting. The key to gaining a SIS of 80% or higher without blowing your budget is being strategic about the areas you’re targeting. Ad campaigns should target only the areas where you see a high return, so you don’t waste budget on the wrong audience or locations that are too far away. Get smart about geotargeting so you’re only showing ads in locations where your customers actually are.
To create a successful geotargeting strategy, use historical sales data to create a sales-by-zip code map of your most successful areas. This paints a clear picture of where you should limit your targeting if budget is limited. For material handling businesses with multiple locations, this also helps determine how much spend to allocate for each rooftop by creating a tailored geotargeting strategy across your sales territory.
The key to making the most out of a limited budget and strict geotargeting—once you’ve selected a target market for your ads, don’t set it and forget it. Adjust targeting on a regular basis. Make weekly, if not daily adjustments to ensure your ads saturate your market with the allocated budget.
Make the Most of Each Dollar When You Increase Budget
If SIS is still low and customers aren’t seeing your ads, it’s likely that you’re missing out on searches because you ran out of budget. Sometimes there’s no way around it and you will need to add more ad spend. Adequate spend will ensure you’re not losing out due to budget restrictions and ads are showing up for your desired market.
However, simply adding more dollars doesn’t always drive more leads. Before increasing your bids or overall budget, make sure you’ve A/B tested different elements of your ads and campaigns one at a time to determine the most successful and cost-effective strategy. Adjusting the CTA, adding ad extensions, increasing quality score, rewriting headlines, and tweaking geotargeting can get you the best results and ensure that when you do add more dollars, you see the highest return on your investment.
Once you’re ready to increase ad spend, smart budgeting and pacing will serve ads to your entire market and help maximize conversions. To get the most from an increase in ad spend, use the sales-by-zip data map you created to strategically increase budget over time and in key geotargets. Take a tiered approach that gradually layers additional campaigns targeting new areas as you increase ad spend.
Get More from Your Digital Advertising Dollars
If you’re not seeing the market share you need from your digital advertising efforts—get in touch. We’re motivated by helping heavy equipment dealers use digital marketing to sell more, and we would love to chat about a unique strategy for your business. Reach out for a free digital analysis to get marketing tips for the material handling industry and personalized recommendations for your market.