A Guide to Efficient Digital Advertising Spend
If you're running digital ads, there's a good chance you're throwing money down the drain. In fact, according to recent analysis, up to 60% of advertising budgets are being completely wasted on ineffective placements, bot traffic, and poorly optimized campaigns.
But here's the good news: most of this waste is entirely preventable.
We've been diving deep into client accounts lately, and we've identified clear patterns of inefficiency that plague advertisers across industries. The silver lining? These issues follow predictable patterns, which means they can be systematically identified and eliminated.
The Hidden Drain on Your Ad Budget
Before we dive into solutions, let's acknowledge the scope of the problem. When we analyzed advertising accounts, they consistently found the same efficiency killers eating away at budgets.
These aren't exotic edge cases—they're fundamental issues that affect the majority of digital advertising campaigns.
The most shocking discovery? In many cases, fixing just one of these issues can immediately improve ROI by 50% or more, without spending an additional dollar on advertising.
The Six Pillars of Ad Spend Efficiency
1. The Bot Traffic Crisis: Your Biggest Hidden Enemy
The Problem: Research shows that 50-60% of all ad impressions are served to bots, not real humans. As Trout puts it simply: "Bots don't buy."
This means that for every dollar you spend on digital advertising, fifty to sixty cents immediately vanishes into the digital void, serving ads to automated scripts instead of potential customers.
The Solution: Implement bot detection and filtering tools. Google Analytics and specialized tools like Foo Analytics can help you identify which traffic sources are delivering bot traffic versus real human visitors.
The Impact: This single optimization can immediately cut your wasted spend in half, redirecting your budget toward actual eyeballs that can convert into customers.
2. Escaping the Audience Network Trap
The Problem: Major platforms like Meta, Google, and LinkedIn have partner networks—third-party websites that display their ads. While this sounds like expanded reach, the reality is often different. Many of these partner sites are designed purely as ad-serving vehicles, cramming 28+ ads onto pages with minimal actual content.
The Solution: Separate your audience network campaigns from your main campaigns. Test their performance independently before deciding whether they deserve a place in your media mix. In most cases, while these placements offer cheap clicks and impressions, they deliver poor return on investment.
The Impact: By eliminating low-quality inventory, you can redirect budget toward placements that actually drive business results.
3. Geographic Precision: Not All Locations Are Created Equal
The Problem: Many advertisers set broad geographic targeting and never look back. But location performance varies dramatically. Trout notes finding situations where "70% of budget is going to something that has a cost per lead that's 80% less efficient" than top-performing areas.
The Solution:
Start broad with your geographic analysis (state-level for national campaigns)
Review performance monthly or quarterly
Gradually get more granular as you identify patterns
Ensure you have statistical significance before making changes
The Impact: Geographic optimization can reallocate substantial portions of your budget from underperforming areas to your most profitable markets.
4. Timing Is Everything: Day and Time Optimization
The Problem: Different audiences are active at different times, and different industries have unique activity patterns. Running ads 24/7 without considering when your audience is most engaged leads to waste.
The Solution: Day-parting and time-parting optimization—but with patience. Wait 3-5 months before implementing these optimizations to ensure you have sufficient data. You need multiple instances of each day and time period to make statistically sound decisions.
Important Note: Don't make assumptions about timing. Some industries perform better on weekends, contrary to conventional wisdom.
The Impact: Proper timing optimization can significantly improve your cost per conversion by focusing spend when your audience is most likely to engage and convert.
5. The Frequency Balancing Act
The Problem: Most campaigns fall into one of two extremes—either reaching everyone just once (insufficient for conversion) or bombarding the same people dozens of times with identical messaging.
Research shows that people typically need 7-10 exposures before making a purchase decision. But showing the same ad 28 times a day creates fatigue and wastes budget.
The Solution:
Prospecting campaigns: Maintain 1-1.3x weekly frequency
Retargeting campaigns: Aim for approximately 21x weekly frequency on platforms like Meta
Vary your creative messaging across exposures
Balance budget between reaching new people and re-engaging existing prospects
The Impact: Proper frequency management ensures you're building the necessary familiarity for conversion without oversaturating your audience.
6. The Conversion Path: Where Many Campaigns Die
The Problem: Beautiful creative and compelling targeting mean nothing if your conversion path is broken. Too many campaigns ask users to take actions that are either unclear or impossible to complete easily.
The Solution:
Ensure crystal-clear calls-to-action in your ads
Verify that landing pages perfectly match the promised action from your ads
Make the conversion process as simple as possible
Regularly audit your conversion paths for friction points
The Target: Aim for conversion rates between 1-3%, with 3%+ being strong performance.
The Impact: This is often the lowest-hanging fruit for improvement. Fixing conversion path issues can dramatically improve campaign performance without changing anything about your targeting or creative strategy.
Implementation Strategy: Start Small, Think Big
The temptation when discovering these efficiency opportunities is to tackle everything at once. Resist this urge.
Patterson and Trout recommend starting with conversion path optimization—it's typically the easiest win and requires no waiting for statistical significance. Once you've optimized your conversion process, move systematically through the other areas.
Remember: the goal isn't perfection immediately. The goal is systematic, data-driven improvement over time.
The Bottom Line
Digital advertising doesn't have to be a money pit. By systematically addressing these six areas of inefficiency, you can dramatically improve your return on ad spend without increasing your budget.
The key is taking a methodical, data-driven approach to optimization rather than making changes based on hunches or incomplete data. Every dollar you save through improved efficiency is a dollar that can be reinvested in growth or dropped directly to your bottom line.
Ready to audit your own campaigns? Watch the complete episode to get access to a downloadable checklist that walks you through each of these optimization areas step-by-step.
Watch the FULL EPISODE for additional insights on how often to update the creative in your digital advertising campaigns.
Watch the Full Episode on YouTube
Listen to the Full Episode on Spotify
Want to connect with EIC or be on our Podcast.
Schedule a free discovery call to discuss your specific digital advertising goals:
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This article is based on insights from the Click and Mortar podcast hosted by Mike Patterson and Dustin Trout, digital marketing experts focused on helping businesses maximize their advertising ROI.
