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Digital Marketing

What to Turn Off First When Ad Budget Is Cut

Cuts made on last month's cost per lead usually damage the wrong campaigns. A better order to work through, and the activity worth protecting.

Updated 2 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Cut broad prospecting before branded and high-intent search, protect anything with a long lead time, and avoid judging by last month's cost per lead where the sales cycle is longer than a month.

The short answer

The instinct is to cut whatever had the worst cost per lead last month. Where the sales cycle is longer than a month, that number describes a period that has not finished producing results.

Cut by intent instead: broad prospecting first, high-intent search last.

A sensible order

  1. Broad prospecting with no intent signal.
  2. Upper funnel awareness activity.
  3. Retargeting beyond a short window.
  4. Non-branded search on generic terms.
  5. High-intent search and branded terms, last.

Branded search looks like an easy cut because those people would find you anyway. Some would; the ones who see a competitor's ad instead would not.

Do not judge on an incomplete period

Sales cycleJudge on
DaysLast month is fine
WeeksLook back a quarter
MonthsLook back further, expect noise
Highly seasonalCompare with the same period last year
Very few salesUse qualified enquiries, not closed deals

The last row matters for high value services. With a handful of sales a year, closed deals are too sparse to judge a campaign by, and qualified enquiries are the honest proxy.

Protect the things that take time to rebuild

  • Anything feeding a long pipeline
  • Campaigns that have accumulated useful optimisation history
  • Activity supporting an imminent seasonal peak
  • Anything you would struggle to restart quickly
  • Tracking, which costs little and is painful to rebuild

Turning off a campaign that has learned a lot and restarting it later is not free. The restart begins without that history.

Reduce before removing

Lowering a budget keeps a campaign alive and keeps the data coming. Switching it off entirely ends both, and the decision is harder to reverse.

Where the cut is temporary, reducing is almost always the better option even though it looks less decisive.

FAQ

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What should be cut first?

Broad prospecting with no intent signal. High-intent and branded search should go last.

Should we cut the worst cost per lead?

Not where the sales cycle is longer than the reporting period. That number is describing unfinished business.

Is branded search worth keeping?

Usually. Some of those people would find you anyway; the ones who would see a competitor's ad instead would not.

Reduce or switch off?

Reduce where the cut is temporary. Switching off ends the data and the accumulated optimisation history.

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