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Shared Budget - impact on auto bidding

wwj
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# 1
wwj
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My adwords account runs with a fixed total budget each month and I use auto-bidding to balance bids and average position so that the campaigns don't become budget limited.

 

In a campaign that uses Auto Bidding, all of the ad groups are assigned the same Max CPC. For this reason when I use auto bidding I collect ad groups into a campaign that will achieve about the same average ad position given the same bid. Otherwise, an ad group with a higher average position at that bid level can gobble up the majority of the budget because it gets so many more clicks.

 

So, how does the new Shared Budget feature affect this issue? If I collect several auto-bid campaigns under a single shared budget, will a campaign with a higher average ad position end up consuming most of the budget?

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Accepted by topic author wwj
September 2015

Re: Shared Budget - impact on auto bidding

Explorer ✭ ✭ ☆
# 6
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Yes you are correct Auto Budget Might Create a Lot Of Problems for showing your ads. But then -

 

Build a strategy -

Which campaigns you want at those position. Do a Last Month Analysis of those campaigns. Find out how much is their optimal spend to optimal returns. Your returns can be leads, conversions or CTR.

 

Based on this analysis group your campaigns into groups. Say if you create 3 groups of campaigns. Then create three different shared budgets for all your campaigns.

 

Let me know if this can work for you.

 

Thanks,

Chetan

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Re: Shared Budget - impact on auto bidding

Top Contributor
# 2
Top Contributor

Hello wwj;

 

Shared budget replaces individual campaign budgets with one large shared budget. All clicks are charged from the "same pool", based on first - clicked first charged", with no preference to a specific campaign. So, bidding will be calculated by "auto bid" and If the ad is clicked, the cost will be reflected on the shared budget.

 

Read more:

About shared budgets

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: Shared Budget - impact on auto bidding

wwj
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# 3
wwj
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Thanks.

So I gather that the Shared Budget will result in all ad groups in all campaigns being assigned the same Max CPC bid.

 

That means a few ad groups can run off with most of the budget.

 

I currently throttle this by assigning separate budgets to each campaign. It looks like Shared Budgets won't work for me.

Re: Shared Budget - impact on auto bidding

Top Contributor
# 4
Top Contributor

No;

They will only share the budget.! CPC, and biddings do not change!


wwj wrote:

Thanks.

So I gather that the Shared Budget will result in all ad groups in all campaigns being assigned the same Max CPC bid.

 

That means a few ad groups can run off with most of the budget.

 

I currently throttle this by assigning separate budgets to each campaign. It looks like Shared Budgets won't work for me.




Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: Shared Budget - impact on auto bidding

wwj
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# 5
wwj
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With auto bidding, bids are determined based on the ad position needed to spend the campaign budget, given that CTR and CPC vary with ad position. All of the ad groups in an auto bid campaign are assigned the same Max CPC.

 

If the budget is shared among several campaigns, then what guides the auto bidding system in setting the Max CPC for each ad group?

 

 

Marked as Best Answer.
Solution
Accepted by topic author wwj
September 2015

Re: Shared Budget - impact on auto bidding

Explorer ✭ ✭ ☆
# 6
Explorer ✭ ✭ ☆

Yes you are correct Auto Budget Might Create a Lot Of Problems for showing your ads. But then -

 

Build a strategy -

Which campaigns you want at those position. Do a Last Month Analysis of those campaigns. Find out how much is their optimal spend to optimal returns. Your returns can be leads, conversions or CTR.

 

Based on this analysis group your campaigns into groups. Say if you create 3 groups of campaigns. Then create three different shared budgets for all your campaigns.

 

Let me know if this can work for you.

 

Thanks,

Chetan