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Meet Target AdWords Budget

edited September 2016 in Optmyzr Tools
What is the best way to adjust budgets between campaigns to meet my monthly AdWords account budget?

Comments

  • edited September 2016
    Distributing budgets between campaigns will depend on the goal you have for the account. If it is to get more sales, then you should allocate more budget to campaigns that are driving a high number of conversions at a low cost. If the goal of the account is to drive more traffic, then you can look at Average CPC. Of course, the budget will also depend on how much money you want to spend on AdWords.

    When your campaigns have performance data, you can use the Optimize Budget tool from Optmyzr to quickly reallocate budgets based on performance. It lets you see different metrics like impresison share lost, clicks, conversions, cost/conversion etc. over a period of time. You can use this data to reallocate budget within the tool. It also has some additional data like potential spend. This tell you how much the campaign is capable of spending with the current bid settings and keyword group it has. You can take a look at the tool and see if it will work for you. Optimize Budget Tool: https://tools.optmyzr.com/compare/spend_projection2
  • Thanks Julia! I appreciate it.
  • Hi! I was trying out the Optimize Budget tool. Can someone tell me how do I use the Impression Share Lost column for distributing my budget?
  • edited September 2016
    Hi Rochelle, Impression Share (IS) is the number of impressions you've received divided by the estimated number of impressions you were eligible to receive. If your ad showed up 70 times but could show up 100 times, then your impression share is 70%. The purpose of impression share metrics is to let you know if you can push your account to get more traffic. The impressions share (IS) lost due to budget shows you how much impression share you lost because the campaign was constrained by budget. The IS lost due to ad rank, shows you how much traffic you're losing due to bids. If the IS lost due to ad rank is high and IS lost due to budget is 0%, there is no point increasing budget unless you increase bids.

    In the Optimize Budget tool, after identifying a high performing campaign which is missing out on impression share due to budget - you can increase the budget to increase conversion volume and improve overall campaign performance.
  • Thanks @"Madhurima Gupta". In addition to using Impression share lost due to Budget, which metric is more useful to make a decision to increase budget for campaigns - Daily Potential Spend or Conversion.

    For ex. Among all my campaigns - there are two campaigns which drive the maximum traffic to my account and they are both losing impression share due to low budget. I wanted to understand if I should increase budget for the campaign which has a higher conversion or the campaign which has higher daily potential spend capability considering that I can only increase budget for one of the two campaigns.

    Option 1: Campaign A - current budget $20, daily potential spend $46, conversions -6, IS lost(budget) - 41%
    Option 2: Campaign B - current budget $25, daily potential spend $38, conversions-10, IS lost(budget) - 18%
  • Hi @"Rochelle Grinsey", it is important to have enough budget for campaigns which will allow the ads to be shown throughout the day. There are cases when many campaigns fail because the ads are limited by budget and do not get to show up during the peak hours. This leads to lost impression share, i.e. lost clicks and lost conversion. If you consider increasing budget of Campaign A, which is losing 41% impression share, you can expect that more impressions will lead more more clicks and conversions.

    You can consider to check conversion rate and split out the available budget to Campaign A and B both. If the conversion rate is comparable, and you have say $30 of available daily budget, then you can split the budget in the ratio of impression share(lost) and allocation budget in 41:18 which is $21 to Campaign A and $9 to Campaign B. If the conversion rate has a significant difference, you can factor it in to spread out the available budget to keep testing and modifying the budgets later! :)

    This increase in daily budget of both the campaigns will let you test campaigns during the peak hours and days. This can help you capture more conversions and increase overall revenue.
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