PPC Condition 5:  Ad Spending Equilibrium

Ad budget equilibrium might be the result of a lot of exceptionally good work, it might result from laziness, or it might be luck. For example, one could achieve Ad Budget Equilibrium by tossing together a shabby account, letting it rip, then setting the budget equal to the average daily spend.

Equilibrium is Not the Goal!

In some cases, this node on our diagram can be a very challenging spot for an ad manager, because whatever changes you implement will unbalance the equation. Yet often changes are required.  If your ad account is in spending equilibrium, then the obvious solution is to expand scope, as a means of tapping into new sources of  potentially valuable traffic and leads.

If the account is super-refined and optimized, and is the distilled end product of a lot of things tested and tried, then you might consider restraining yourself to maintenance and regular analysis, but in such a case, the prospects for massive performance improvements will be quite limited.

Destination or Just a Rest Stop?

Most often Ad Spending Equilibrium is a superficial condition which can easily be remedied by expanding scope.  If the account is in a shambles, then you’ll have to suffer the disruption of refactoring it, and that is sure to land you on a different node on our diagram.  Even if it’s nicely organized, it may not be optimized.

Remember, the targeted economic condition isn’t Ad Spending Equilibrium; it’s Bargain Hunting!  Expand your horizons, find new advertising opportunities, create greater value!

For remedies, refer to Starved for Traffic.