Choosing the Best Ad Types and Platforms to Maximize ROI on a $1000 Budget

In our previous blog, we touched on how a $1,000 monthly ad spend can be a great starting point. If you missed it, we encourage you to take a look—it’s a helpful foundation. We understand that $1,000 may either feel like a lot or not enough, depending on your goals, but with thoughtful planning, it can go further than you might think. Whether you're a small business owner or a marketer managing the ad spend yourself, we've put together some insights from past experiences to help you make the most of your budget. Let’s work together to turn that investment into meaningful growth.

Choosing the Right Ad Types

It’s all about how you vibe with the ad type. Just kidding, this isn’t dating advice. When you’re working with an ad spend that’s relatively restricted (meaning you can’t exceed your budget) it’s important to focus on the right type of ad that can give your business the best possible return on investment (ROI). Recent data suggests two primary contenders:

In the red corner we have Search Ads. With an average conversion rate of 6.96% across industries, search ads are a powerhouse for driving action. They capture user intent at the moment of search, making them highly effective for businesses looking to convert interested prospects.
In the blue corner we have Display Ads. While they typically have lower conversion rates, display ads offer broader reach at a lower cost. With an average cost-per-click (CPC) of just $0.63, they're an excellent option for building brand awareness and reaching a wider audience.

Realistically, choosing the right ad type is completely dependent on your goals. You’ll have to define those for yourself. But it doesn’t hurt to take the data into account regardless of your final decision.

Platforms That Pair With Your Budget

Your product, service, or business as a whole is bound to do great things. Running ads will speed up that journey. One thing to keep in mind as we walk through this journey is that not all advertising platforms are created equal – especially when it comes to stretching a budget. Here are some platforms which offer endless value:

Google Ads: The king of online advertising, Google Ads offers both search and display options. Google Ads reaches over 90% of internet users worldwide and with the platform's precise targeting options and budget control features, it’s a match made in heaven.
Amazon Ads: A powerful platform for e-commerce businesses, Amazon Ads allows you to reach customers actively shopping on the world's largest online marketplace. With options like Sponsored Products, Sponsored Brands, and Display ads, it's particularly effective for product-based businesses.
Microsoft Advertising (Bing Ads): Often overlooked, Microsoft's advertising platform offers CPCs that are, on average, 33% lower than Google's. With less competition, your budget can potentially go further here.
Facebook Ads: With an average CPC of $0.97 across all industries, Facebook's advertising platform is particularly effective for businesses targeting specific demographics or interests.

With your goal, target audience, and budget in mind, you can start developing your platform usage. At 4X Digital, we recommend aligning your budget with the marketing funnel—awareness, consideration, conversion, and loyalty. For instance, Google Ads can capture top-of-funnel awareness by targeting broader audiences, while Amazon Ads effectively drive conversion by reaching shoppers with high purchase intent.If you're working with a $1,000 budget, consider allocating 40% to Google Ads for broad reach, 40% to Amazon Ads to target active shoppers, and reserving the remaining 20% for retargeting on social platforms like Facebook to re-engage those who’ve shown interest. This way, you're leveraging each platform's strengths while covering different stages of the funnel to maximize both reach and conversion opportunities.

Bidding Strategies to Maximize Your Budget

So, we’ve identified our sweet spot for figuring out our starting ad spend, we’ve spoken about which platforms tend to be the best, and we’ve also discussed the types of ads. Now, how do you make the most of your ad spend with these ad types on these platforms? Don’t think too hard, we’ve got you covered.

Start with Manual CPC Bidding: This gives you greater control over your spend, allowing you to set conservative bids initially and adjust based on performance.

A part of manual bidding is setting maximum bid limits for CPC – which detailed by Google is one of the first steps you can take.

Implement Ad Scheduling: By focusing your budget on times when your audience is most active, you can reduce wasted spend by up to 25%.
Use Geo-targeting: Concentrating on high-performing locations can improve your ROI by 30% or more.

When setting up your next campaign, whether it be on Google, Meta, Amazon, Bing, or wherever, decide on what the best locations are for your ad and add them as targeting areas.

Optimize for Mobile: Mobile ads often have lower CPCs, averaging 24% less than desktop. Ensure your ads and landing pages are mobile-friendly to capitalize on this.

Regardless of your ad platform, you can choose where your ads show. More times than not, the recommended option is to allow both Mobile and Desktop which means your ad creatives will need to be able to adapt to both device types.

Utilize Remarketing: Targeting users who have already shown interest in your product or service typically yields higher conversion rates at lower costs. Studies show remarketing can increase conversions by up to 51%.

Putting It All To Work

An effective ad spend strategy isn't just about dividing up your budget; it's about aligning that spend with each stage of the marketing funnel using the 4X GAIN framework: Grow, Attract, Increase, and Nurture. Here's how you can break down a $1,000 budget following the GAIN approach:

$400 on Google Search Ads (GROW): Focus on high-intent keywords to attract prospects already searching for what you offer. This will be your primary traffic driver, so ensure your ad creatives are engaging and your landing pages are optimized for conversions.
$300 on Facebook Ads (ATTRACT): Utilize Facebook’s lookalike audiences based on your existing customer data to discover new potential buyers. Invest in eye-catching visuals and dynamic creatives to stand out in social feeds and build brand awareness at scale.
$200 on Retargeting (INCREASE): Allocate this budget across Google Display and Facebook Retargeting to reconnect with users who have visited your site but haven’t yet converted. Personalized messaging is critical here—remind them of what they viewed or offer an incentive to complete their purchase.
$100 on Amazon Ads (NURTURE): Leverage Amazon's powerful ad platform to target users browsing for similar products, nurturing lower-funnel prospects with tailored messaging. Amazon’s user intent and vast reach can help keep your brand top of mind and drive conversions at this crucial stage.

By aligning each portion of your budget to a specific stage in the GAIN framework, you ensure that your campaigns are working cohesively, from generating initial interest to nurturing prospects toward conversion. Always keep an eye on performance and adjust bids as needed—move budget to the channels and creatives that are driving the best results. This thoughtful approach will help make every dollar count.

The key is to strategically target each stage of the funnel, ensure your creatives are compelling, and continuously monitor performance.

Stay adaptable—optimize based on what resonates with your audience, and fine-tune your bidding strategies to maximize impact. With a focused and thoughtful approach, you can turn a limited budget into measurable growth for your business.