Foundation For Budgeting B2B Digital Ad Spend

There has never been a bigger knowledge gap in today’s current state of marketing.

The unfortunate reality is that people are being fooled by unrealistic expectations of what Digital Marketing can do for your business. The results that a business gets online when they’re selling a gym membership versus a professional services consulting engagement are going to be completely different.

The advertising campaigns, sales funnel, social media content, it’s all going to be different.

Conceptually, things are the same, strategic use of these concepts are going to range from business to business but in it’s most basic form, it all boils down to a single factor:

How Does Your Target Audience Make a Decision?


When you’re marketing something, consumer decisions fall under three categories: low, medium, and high consideration purchase decisions.

Low Consideration

These are purchases made with minimal amounts of planning or thought. This is typically where most of your impulse purchases or “oh I forgot I needed that” purchases will fall under. There is also very little risk involved when making a low consideration purchase.

Medium Consideration

These involve decisions that fall in between low and high consideration (duh!).

This one is easy to explain but hard to define for businesses so I will give you a very relevant example: If you were the Marketing Agency of Record for an organization and they needed a series of videos produced for an upcoming event, that would be a medium consideration purchase.

What differentiates this from a high consideration purchase is the fact that the Agency already has a preexisting relationship with the client.

High Consideration

Interesting fact: these are my favourite types of purchases to market and advertise for because not only can they be challenging, it’s alarmingly underserved in local markets.

High consideration purchases will usually carry more risks and have a higher price tag. There will also be a lot of variables to take in to consideration for your target audience. Examples of these include hiring professional services consultant or agency, buying a new house, purchasing a car, and the list could keep going.


Risk and Price of the product or service that you are marketing will determine the amount of time and thought that go in to a decision.

Why Does This Matter…

Think about this: The more time someone spends driving increases the likelihood of that person getting into a car accident.

How does this relate to decision making? The more time spent making a decision means more opportunities for someone to say no to your offer. Your content and paid advertising strategy should be aligned with the decisions that people make or consider before they buy your product or service.

So when it comes to spending money on a platform such as Facebook or Google, it’s important to keep in mind; The more time it takes for someone to decide they want to purchase what you have to offer, the less qualified leads you will receive per advertising dollar.

For example, if the Lifetime Value of a new client to your business is $30,000.00, it’s unrealistic to expect to spend your first $100.00 on Facebook Ads and get a new client (of course it’s possible to spend $0.01 and one of the first ten people who saw your ad took action on it… just unlikely). It is however possible to optimize a marketing campaign so that you are spending $100.00 for a qualified lead but that does mean you should expect to spend money on “failing forward.”

Action Items

  • Determine what level of consideration your target audience goes through to purchase your product or service.

  • Identify the micro-decisions they make before they say yes to your service.

  • Build out an advertising plan that includes a content and distribution strategy.

If you’re a B2B Business Owner and Digital Marketing is something that you have wanted to begin to implement, I am building a Digital Marketing Foundations Lab and will be opening it up for testing soon. If you are interested in participating, please fill out this form.