The right Ads Budget split between Branding and ROAS expenses
I’m regularly asked by Brand Owners (Product Manufacturer and Sites owners) about the right split between Branding and ROAS expenses.
Too often Brands are overseeing Branding investments like Google/Facebook Displays, magazine cover, or any other awareness action. The reason is usually
How do I calculate a Branding Ads investment?
The best way for a Brand to grow is to agree UPFRONT on a percentage of Sales you will invest in Branding. That bucket of Ads will NOT be measured using the Conversion rate but rather the number of times it has been clicked.
Key is to make sure that Google and Facebook are targetting the right audience websites. You will notice quickly that most of the clicks are usually coming from dodgy AdSense websites that are promoting mobile games and online betting. Unless your Brand fits those industries, make sure that you exclude the
How the ROAS Ads will improve from my Branding actions?
The specific searches that will be fueled by the Branding actions will usually cost between 0.01$ and 0.04$ a click. This usually comes with a high click-through rate conversion rate since the user was specifically looking for you.
The more your Brand will be visible, the more specific searches there will be.
How do I measure my Brand Equity? (i.e. The result of my Branding investment)
The Brand Equity has no precise measure formula. It’s usually measured in a very subjective way by M&A Analysts. The way I calculate it:
Brand Equity = [Brand Search Clicks] x [Average Cost of Clicks]
So if your Brand, let’s say TeaTower, is being specifically searched 1500 times per year; and your Average Cost of Clicks (Marketing payroll included) is 7$, your Brand Equity is equal to 10,500.00$.
The Brand Equity being part of the Balance Sheet / Asset section, it gives you a proper valuation of what the Brand is worth.
So what should I do next?
Agree with your CFO and your Board (easier if it’s you) on a percentage and assign it to a Display campaign. Facebook and Google have the cheapest ones for a large number of display.
You may have to use canva.com or another creative tool to build the banners in the right sizes. The more sizes you have, the further you’ll reach;
Google Display Ad sizes:
Square and rectangle
200 × 200 Small square
240 × 400 Vertical rectangle
250 × 250 Square
250 × 360 Triple widescreen
300 × 250 Inline rectangle
336 × 280 Large rectangle
580 × 400 Netboard
Leaderboard
468 × 60 Banner
728 × 90 Leaderboard
930 × 180 Top banner
970 × 90 Large leaderboard
970 × 250 Billboard
980 × 120 Panorama
Skyscraper
120 × 600 Skyscraper
160 × 600 Wide skyscraper
300 × 600 Half-page
300 × 1050 Portrait
Mobile
300 × 50 Mobile banner
320 × 50 Mobile banner
320 × 100 Large mobile banner
