Paid advertising: Why A/B testing is so important

Ever launched a paid advertising campaign only to see mediocre results? Isn't it frustrating when you're investing money but not getting the return you expected?

You might be missing an essential component that turns ordinary campaigns into great ones.

With so many platforms, and success relying heavily on ever-changing algorithms, the pressure is on to spend every pound wisely.

Yet in this haste, many advertisers forget to take advantage of one of the most powerful tools available to them: A/B testing.

Making the most of your advertising budget means understanding the profound effect that A/B testing can have.

By comparing various iterations of your ads and methods of targeting, you can uncover insights that result in higher engagement, more conversions and, ultimately, a better return on investment.

In this blog, we explore A/B testing and explain why it's not just important – it's indispensable.

What is A/B testing in paid advertising?

A/B testing (or split testing, as it's sometimes known) is the process of comparing two versions of an ad to see which one works best. This could involve testing variations of:

• headlines

• images or videos

• calls-to-action (for example, "Shop now" vs. "Learn more")

• offers or discounts

• ad copy (for example, formal vs. conversational tone)

You could, for instance, make two Facebook ads: one with a vibrant image of your product and another featuring a happy customer using it. The platform will divide your audience and show each ad to different users.

Once the test is over, you'll know which version generates more clicks or conversions, which will help you refine your future campaigns.

Why A/B testing is essential

As a small business, your advertising budget might not give you the freedom to run trial-and-error experiments.

A/B testing is a low-cost way to get the most from your spending. Here's why:

1. It's cost-effective

If you don't test, you run the risk of wasting money on ads that fail to perform. A/B testing lets you avoid this, as it's quick to identify those elements that just aren't working.

For example, if one version of your ad gets twice the clicks as another, you can stop allocating budget to the weaker option.

2. Your decisions are based on data

Gut instincts are excellent for brainstorming. But in advertising, you should make decisions based on hard facts.

A/B testing gives you concrete proof of what works for your audience, so you can stop the guessing and make informed choices.

3. You can make incremental improvements

Even minor adjustments can lead to big gains. Making a single change, like switching to a more attention-grabbing headline, could double your click-through rate (CTR). Such incremental improvements add up over time and greatly increase your ads' effectiveness.

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Ad testing strategies for low budgets

When money is tight, A/B testing might feel like a luxury. But with the right tactics, it can be both affordable and effective. Here's how:

1. Start modestly

Don't feel compelled to test every aspect of your ad at once. Begin with a single important variable – like the headline or image – and run a simple test. This keeps your expenses under control and ensures you get clear results.

2. Focus on high-impact changes

Some elements affect performance more than others. For example, your call-to-action or discount offer can have a noticeable impact on conversions. Prioritise testing these elements over smaller details like font choices.

3. Allocate a budget for testing

Set aside a small portion (like 10% to 20%) of your total ad budget for testing. Once you've found a winning ad, you can confidently use the remaining funds to scale it up.

4. Use the built-in tools

Platforms like Facebook Ads and Google Ads have A/B testing features built in, making it easy to set up and analyse tests without extra charges. These tools automate much of the process, saving you time and effort.

How to set up a split testing ad campaign

Follow these steps to set up a simple, effective split test:

1. Define your goals

Before you create ads, decide what you want them to achieve. Are you trying to get more clicks, drive traffic to your website or boost conversions? Clear goals will guide your test and help you measure success.

2. Create variations

Develop two versions of your ad that differ in one important way. For example:

• Headline A: "50% off today only!"

• Headline B: "Shop our biggest sale ever!"

Keeping the rest of the ad the same means you can pinpoint what caused the difference in performance.

3. Set up the test

Use the split testing feature on your chosen platform to divide your audience evenly between the two ads. Make sure your audience is sizable enough to produce useful data – a few hundred impressions per ad is ideal.

4. Run the test

Allow enough time – usually five to seven days – for the test to run, so you can gather reliable data. Don't make any changes during this period, as this will help you get accurate results.

5. Analyse the results

Review key metrics like click-through rate (CTR), conversion rate and cost-per-click (CPC). Find out which version did better and why. Use these insights to improve your campaigns in the future.

Common challenges and how to overcome them

While A/B testing is straightforward, small business owners often run into difficulty when they first begin. Here's how to tackle them:

Challenge 1: "I don't have time to test ads."

Solution: Begin with a single, easy test, like comparing two headlines. Most platforms make the process quick and easy, so you won't need to spend hours managing it.

Challenge 2: "I don't understand the data."

Solution: Pay close attention to a few important metrics, like CTR and conversion rate. Platforms like Google Ads provide clear reports, and there are plenty of free tutorials available to help you interpret the data.

Challenge 3: "Testing takes too long."

Solution: Even though some tests may take a few days, you can still glean valuable information from short-term tests, particularly if you have a large enough audience to gather data quickly.

Case study: How A/B testing transformed a small business's ads

Let's consider a hypothetical scenario. Jenny runs a small online fashion boutique in northern England.

She launched a Facebook ad campaign but wasn't getting the sales she anticipated. With only £100 to spend, she decided to try A/B testing.

Step 1: Testing headlines

Jenny made two versions of her ad:

• Ad A: "Shop the latest trends for less!"

• Ad B: "Upgrade your wardrobe with 20% off!"

Step 2: Running the test

She ran the ads for one week using Facebook's split testing tool. Ad B outperformed Ad A, with twice as many clicks and a 30% lower cost-per-click.

Step 3: Scaling the winner

With the money she had left over, Jenny scaled Ad B. The result was a 50% increase in sales compared to her original campaign.

By testing one element and evaluating the outcome, Jenny made the most of her meagre budget and got better results than she thought possible.

Key takeaways

Ready to start A/B testing your ads? Here's a quick recap to get you going:

• Define clear goals before running a test.

• Focus on testing one element at a time.

• Use affordable tools like Facebook Ads or Google Ads for easy set-up.

• Analyse key metrics to determine what works best.

• Scale your winning ad to make sure you're using your budget efficiently.

Relevant resources

• What is paid advertising? A brief guide

• How to set up a paid advertising campaign

• Audience segmentation in paid advertising: How it works

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