Paid Advertising Budgeting Tips
Having full control and management of a budget for an online campaign is one of the many benefits of using PPC advertising with Google AdWords this feature makes it much easier to monitor ROI from advertising.
To set a proper budget strategy, first examine how AdWords budgets work.
Campaign Budgets
This sets a total maximum amount for all keywords for the amount the advertiser wants to spend. In AdWords, this is the average per day. The “average” means that on days where there is more search volume, Google can over deliver and incur costs of up to +20 percent of the budget cap. There is an option to set a monthly budget in AdWords. To do this, you can either pre-pay each month from a credit card or get a monthly invoice.
Often, we advise letting Google have the +20 per cent to play with, certainly at the beginning of a campaign, in order to make the campaign as competitive as possible.
Shared Budgets
AdWords sets a cap for several campaigns grouped together, which is appropriate for campaigns with similar searcher intent and similar volume size. There is not a specific priority among keywords.
Starting Up
Clients often want to know how to set up initial budgets. At first, this requires some basic steps:
- Total budget / 30.4 days in a month = daily budget
- Divide the daily budget by the number of campaigns or organisational goals.
- Once data is gathered, adjust each campaign’s budget to allocate more by the metric that is most important – for example, ROI or click traffic.
- Be sure to pause or greatly reduce low performers, and redistribute that to the top performers.
Maximising Budgets
Assuming the account is effectively running, some advertisers will want to maximise budgets to capture as much opportunity as possible.
- Set budgets higher as applicable on priority campaigns.
- Review AdWords, and budget tools to explore performance estimates. Check to see if the recommendations make sense and can roll out efficiently.
- Use Accelerated Serving, but watch for ads ending too soon in the day or that don’t have enough high-volume keywords dominating the budget.
- Use Broad Match or Modified Broad Match on keywords, and control relevancy through use of negative keywords
Containing Budgets
Given a lower budget, there are ways a budget can be micro-tuned to make the most of it.
- Set budget to serve to Standard, which will serve ads evenly over time.
- Use data to determine the best time of the day or days of the week to run ads, and use ad schedules or bid modifiers to control spend.
- Use data to analyse performance by geography. Adjust geo-targeting and use bid modifiers to control spend.
PPC budgeting can be challenging for some, but approaching budgets with several different tools can help take control.
Contact Dental Design for all your PPC budgeting enquiries on 01202 677277
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