[Funding Guidebook for Practitioners #7] How to Use wadiz Advertising Budgets Without Failure

PlanBro, an official wadiz partner,
shares tips on how to use funding 
we’ll show you how to use your advertising budget

Be sure to take this with you!

• Here are a few key metrics you must check when running wadiz ads. 
• By analyzing your ad data, you can identify areas for improvement. 
• If your ad performance is low, try changing your “ad creative.”

"Is it better to spend as much as possible on advertising?"

This is a question I often get during preliminary meetings with people preparing for a funding campaign. Many people also ask questions about setting advertising budgets, such as, “How much should I spend on advertising?” By reading this article, you’ll find the answers to these questions.

The Starting Point of Funding Marketing: Targeted Advertising

Success is determined by customers, not by us. Therefore, to know how much to invest in advertising—and how much the funding amount will increase as a result—we must first gauge customer response. A target amount or advertising budget set solely by our team is nothing more than an unfounded prediction. 

So, let’s take another look at wadiz’s three ad types. Unless you have a clear strategy in place, we recommend using targeted ads to gauge customer response (i.e., data) before setting your actual goals and estimated advertising budget. 

• Display and Push Ads: You can run these at a fixed price or during available time slots. 
• Targeted Ads: You can run them for your desired budget and for the duration you choose. 

If you’re a first-timer, try setting it up this way

Source: wadiz Advertising Center
If you’ve run Meta ads before, you’ll find it easy to run wadiz Targeted Ads as well. If this is your first time with Meta ads, wadiz Official User Guideto learn the basics of using Biz Center, and then start setting up your campaign step by step following the instructions below.We’ve prepared guidelines focused on running ads safelyon a low budget. 

* Please note that this is not intended to be a “you must do it this way” guide. 
* Your advertising strategy may vary depending on the purpose of your funding campaign, your budget, and your product.

01. Ad Budget and Duration (Enter Campaign Information)

When setting up ads during the funding period, you’ll configure the campaign in two phases: the period before the campaign is launched and the main funding period. Naturally, the key metric during the period before the campaign is launched is “Number of Notification Subscribers,” while the key metric during the funding period is “Amount Raised.” My recommended checklist is as follows.

02. Target Audience Setup (Enter Target Audience Information)

When analyzing your product’s target audience, it’s best to take a narrow and in-depth approach. However, it’s advisable to give the advertising platform some autonomy . Most advertising platforms have the capability to identify your customers on their own by leveraging vast amounts of customer data. Unless there’s a specific reason, you don’t need to adjust the target audience fields. For products with very clear demographic targets—such as alcoholic beverages—make only minimal adjustments to those specific areas. 

03. Ad Creative Review (Enter Creative Information)

Advertising ultimately comes down to the creative. (For tips on planning compelling thumbnails and ad creatives, please refer to this article↗.) If you’re just starting to create your creatives, try producing ones that meet the following five criteria. You can also use these criteria to review your existing creatives. 

You must be able to read the minimum data  

About three days after the ad campaign launches, check the following three metrics first. I highly recommend familiarizing yourself with the three terms below.

So, which of these three metrics should you look at first? It’s CPA. This is because you need to determine whether the following equation holds true: Net profit per conversion > Funding CPA. If you’re running ads while you’re launching soon, you’ll need to adjust your notification sign-up CPA to your funding CPA. To be conservative, let’s calculate the funding CPA as 10 times the notification sign-up CPA. 

Does the following hold true when 100,000 won in funding is generated: net profit > 20,000 won (notification sign-up CPA × 10)? 
If the net profit is greater than 20,000 won, we can continue to turn a profit through advertising. We can then decide to either maintain the current ad campaign or increase the advertising budget. Conversely, if the net profit is less than 20,000 won, we’ll need to improve efficiency, right? Depending on the situation, we might even have to pause the ads entirely. 

Countermeasures Based on Ad Efficiency

If the net profit is higher than the CPA 

Based on initial data, we can predict the funding amount relative to our ad spend for this project and incorporate this into our ad settings. 

Example: If every 20,000 won in ad spend generates 100,000 won in funding, we’ll need about 2 million won in ad spend to reach our funding goal of 10 million won!

However, please remember that data is constantly changing.Sinceadvertisingdata isn’t a fixed number, you shouldcheck it at least once every 2–3 days to ensure your ads are performing as initially predicted.  

If your net profit is lower than your CPA,

it means we’ve identified the problem, so don’t get too discouraged. The fastest way to improve performance is to change the “ad creative.”Let’s revisit the bottom two of the three metricswelearnedabout earlierand think about how to adjust the creative.  

After changing the creative, monitor the results for another 2–3 days to see if the CPA falls within the net profit range. Until you find a CPA that falls within this range, I recommend continuing to run the campaign with a small budget while focusing on refining your targeted ad creatives. 

Ads Are Not the Be-All and End-All of Marketing

Advertising isn’t the only way to promote our funding project. There are marketing strategies that you, as makers, can execute far better than anyone else. Sometimes, these marketing activities can have a much greater impact on funding results than advertising. In the next post, we’ll discuss marketing methods other than advertising that you can implement using nothing but your authenticity and passion.  

Makers, check out the services you need! 

• Learn how to [start] a wadiz project
• View [Maker Events] currently open for registration
• Watch [wadiz funding lectures] led by funding experts
• Start a project with a [wadiz Official Expert]
  
  

Post PlanBro Edited by Jeon Su-yeon