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How NYC Event Planners Know When Paid Ads Are Worth the Spend (And When They’re Not)

Published Date
Author Jessica Stewart

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We live in a digital world, so every event planner faces the dilemma of whether and where to invest in paid ads. It doesn’t make sense to advertise on every channel, and you could easily blow your entire marketing budget trying. So what’s the best approach? 

The best NYC event planners know when paid ads are worth the spend, and when they’re not. Fortunately, it’s easy to learn the basics of digital marketing. Follow these tips to help you decide when to use paid ads and when to skip them.

You Have a Clear Sense of Where Your Customers Are

Paid ads are expensive. You’re likely to spend thousands of dollars a month, for a minimum of five months, before you really know whether an ad campaign is working. That’s a lot of money to throw away advertising on a platform your customers don’t use.

Successful NYC Event Planners know that paid ads are only worth the spend if their target audience actually sees them. Take time to learn which platforms your customer base uses, and try the most popular platforms (within your budget) first. Include a question asking, “How did you hear about us?” on contact forms, registration forms, and post-event surveys to get a sense of where to reach your customers. 

You Have a Great Copywriter

Paid ads are never worth the spend if you’re not putting out content your audience wants to see. That’s why it’s essential to hire a good copywriter. Copywriters typically cost a fraction of what a paid ad campaign will cost, so it’s well worth budgeting for a copywriter in your marketing plan.

Remember, you will likely need to adjust your copy as time goes on. Your copywriter should be willing to update ad copy as you learn what works and what doesn’t. However, you should expect to pay an additional fee for this. It’s not a failing on the part of your copywriter to need changes over time. It’s simply part of the testing process. 

Run the Numbers

Once you have brilliant copy ready and you know where you’d like to advertise, it’s time to run the numbers. Testing how well your ads work and tracking that data over time is the only true way to know when paid ads are worth the spend and when they’re not, so get comfortable with these metrics.

    • A/B Testing. A/B testing allows you to compare two different versions of your ad to see which performs better. This is how you know which headline sings, which visuals grab your audience, and which call-to-action actually works. 
    • Return on Investment (ROI). Calculating the ROI on your ad campaign tells you whether the campaign is generating profit. While many elements contribute to whether a campaign is ultimately successful, the formula for calculating ROI is simple: ROI=(Net Profit/Ad Spend)*100. 
    • Click-Through Rate (CTR). How often do viewers click on your ad after seeing it? Calculating the CTR gives you that exact number. Just divide the total clicks by total impressions and multiply by 100. Many platforms automatically keep track of the CTR for you. 
    • Conversion Rate. The conversion rate shows the percentage of clicks that result in a specific action being taken. For instance, if you’re interested in whether ads result in bookings or queries, you can calculate the conversion rate to see how often users follow through after clicking. The formula for this is Conversion Rate=(Total Conversions/Total Clicks)*100. Again, many platforms track this for you.
    • Cost Per Acquisition (CPA). So, how much does each of those conversions cost you? Find out by calculating the CPA. Divide your total ad spend by total conversions to see how much you’re spending to acquire each new client or booking.
    • Return on Ad Spend (ROAS). Similar to ROI, ROAS tells you how much profit you generate from your ads. To calculate the ROAS for your campaign, divide your total ad revenue by the cost of your paid ads.

Once you have clear metrics to guide you, you know exactly when paid ads are worth the spend and when they’re not. Then, you can judiciously choose where to spend your ad money so you get the best return on your investment. 

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