Balancing ad budgets and occupancy for your self-storage business can be as challenging as mastering a complex yoga pose. Google Ads is a powerful tool, but managing it requires balance, flexibility, and mindfulness. Many agencies offer to handle your Google Ads campaigns on a commission-based model, taking a percentage of your ad spend as their fee. While this might seem convenient, it’s not the most harmonious or effective way to manage your self-storage facility marketing budget.
Time to stretch your mind and take a more flexible approach to your marketing budgets—one that is in perfect harmony with your occupancy rates—is superior to the rigid commission-based model.
Transcend Commission-Based Models
Commission-based models, where agencies charge a percentage of your ad spend (typically around 20-30%), don’t make sense for the self-storage industry. Here are the main drawbacks:
1. Misaligned Incentives
Agencies operating on a commission model are incentivized to increase your ad spend rather than improve your ROI. Their income directly correlates with how much you spend, not how effectively those dollars are working for you. This can lead to inflated budgets and inefficient spending.
2. Lack of Flexibility
Commission-based models usually entail a fixed monthly budget, regardless of your current business needs or market conditions. This rigidity can be problematic, especially in the self-storage industry where occupancy rates can fluctuate due daily/weekly to seasonal demand or local events and availability.
3. Reduced Control
When you pay a percentage of your ad spend, you relinquish some control over your marketing budget. Agencies might prioritize high-cost campaigns that drive up ad spend (and their commission) instead of focusing on cost-effective strategies that deliver the best ROI.
The Flow of Occupancy-Based Budgets
A more strategic approach involves tying your marketing budgets to occupancy rates and adjusting them based on real-time data. Here’s why this model is superior:
1. Budget Efficiency
By linking your marketing spend to occupancy, you ensure that your budget is aligned with your actual business needs. During periods of low occupancy, you can increase your ad spend to attract more customers. Conversely, during peak times, you can reduce spending to avoid unnecessary costs and get the most from your advertising dollars.
2. Enhanced ROI
When budgets are tied to occupancy, every dollar spent on advertising is directly aimed at achieving specific occupancy goals for each location. This focused approach ensures that your marketing efforts are always relevant and targeted, leading to a higher ROI.
3. Greater Flexibility
An occupancy-based budget allows for more flexibility and responsiveness. If a particular location is underperforming, you can quickly shift resources to boost its visibility. This dynamic approach helps you stay agile in a competitive market.
4. Improved Decision-Making
Using occupancy data to inform your marketing strategy provides a clear picture of your business performance. This data-driven approach helps in making more informed decisions about where and when to allocate your marketing budget, leading to better outcomes.
Adverank is your Instructor
Our platform integrates with your property management system (PMS) to provide real-time occupancy data, allowing you to adjust your marketing budgets dynamically. Here’s how we help you achieve marketing balance:
1. Occupancy-Based Budget Allocation
We help you set up marketing budgets that align with your occupancy levels. This ensures that your ad spend is always in sync with your business needs, maximizing efficiency and effectiveness.
2. Automated Adjustments
Our system automatically adjusts your Google Ads budget based on real-time occupancy data. This means you can focus on running your business while we ensure your marketing budget is always optimized.
3. Transparent Reporting
With Adverank, you get insights into your ad performance and budget allocation along side your occupancy data. Our transparent reporting helps you understand exactly how your ad dollars are being spent and the impact they’re having on your occupancy rates.
4. Expert Support
Our team of digital marketing experts is always on hand to provide guidance and support. Whether you need help with campaign strategy or optimizing your ad copy, we’re here to ensure you get the best results from your marketing efforts.
Commission-based models for Google Adwords management can lead to inefficiencies and misaligned incentives. By adopting a flexible approach to your marketing budgets—one that bends and flexes with your occupancy rates—you can ensure that every dollar spent is working hard to achieve your business goals. Adverank offers the tools and expertise to help you implement this strategy, providing greater flexibility, improved ROI, and more control over your marketing spend.
Schedule a demo with Adverank and see how we can help you achieve your business goals with a flexible, occupancy-based approach to digital marketing.
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