Imagine you have an Account with one Campaign, one Ad Group and one Keyword. In our mythical world, there are always exactly 1000 searches that could match against this Keyword, and your Ad always produces a CTR of 10%. Each click always costs $1 so your daily budget of $100 always gives you 100 clicks. Now imagine if you introduce another Keyword with the same performance figures, but the daily budget remains the same. You now have two Keywords which, between them, could potentially match against 2000 searches and accrue 200 clicks at a cost of $200, but your daily budget is only $100 so Google has to compromise and show an Ad for each Keyword match only about 50% of the time when it could.
This probably sounds very obvious, doesn't it? But why then do we so often see the following situations being presented to us?
- An AdWords user has added a number of new Keywords - sometimes an entirely new Ad Group - to a Campaign without changing the budget, and is asking why they're now getting fewer clicks and/ or sales from their existing Groups that are "unchanged".
- An AdWords user has over 10,000 Keywords in their Account and runs a test of AdWords performance with a budget of just $10 a day.
#2 is quite fun when you see someone proposing a new Account structure that usesmillions of Keywords and you kindly and carefully point out that a valid test of such an Account would probably require a minimum of a six-figure daily budget. Maybe even $1 for every Keyword, perhaps much much more. Per day.
#2 is less fun when you try to explain that having a lot of Keywords and a low budget is actually harmful to the Keywords that could work at that budget. Ask yourself right now how many Keywords you have in your Account that are just "using up" valuable daily budget when you have others that could use it to convert into sales.
AdWords Management Consultant, a Google Partner, based in Dorset, UK, but working worldwide... I'm very proud of having been a Top Contributor for AdWords since 2006 and enjoy being able to help others improve and develop their AdWords usage. I now work primarily as an AdWords Manager & Consultant. You can read my eBook "AdWords Preschool", just search on Amazon.
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