I'm been holding off launching my campaigns until I've figured out the best strategy for spend. I have about £1200 for first month spend. Someone has advised me to spend fast and bid high, up to 100% more than suggested first page bid and run at a loss inititally to go for the max number of impressions and get a good quality score in the first month before bringing down CPC in the next month, My only concern is that I don't know how quickly my budget would be used up- so for instance I think my primary goal is to test the max number of keywords to see what converts first. I accidently turned on my campaign the other week and within a day £100 had been spent, from only a half dozen keywords. Two conversions were made. My daily budget for this one campaign was at at around £35 so it appeared to spend far more than I expected. It was turned on for no more than one day I think.
Can anyone suggest the best strategy? Should I lower each campaign spend so a wider range of keywords are tested, and that I can quickly turn off any non converting ones? Is the suggested above method from my contact the best way to best high impressions/clicks quality score initially?
Re: Budget strategy
If you have 1200 pounds as the monthly budget i.e. 40 pounds daily budget, then start with following points (I am assuming you are clear about the Goals you want to achieve):
- Identify and target only those locations where you want to show your ads
- Identify selected set of keywords (rather than big list) to target (and that too neither high search volume nor low search volume but decent volume keywords).
- If you can find and create this list then start with exact match keywords so that you have control over your spend. If you are not sure what users are searching then better start with few keywords in Broad Match Modifier and after a week or so you will be able to identify the keywords that users are searching for which you can add in exact match later on.
- Do find possible irrelevant queries to add as negatives. If you are not sure about it, then check the Search Query Report and add any irrelevant query that's triggering your ads.
- You can also apply Ad Scheduling in order to show your ads during a part of the day and some days of the week to control your spend
- Set your Ad Delivery Method to "Standard" i.e. Show ads evenly over time.
- Initially you may want to run your ads on Google Search and Partners only. Later on based on your accounts performance you can expand it with Google Display Network as well.
- Identify the Devices you want to target initially - Desktop/Tablets and Mobile. You can exclude Mobile devices completely, if you want to, just to control the cose initially.
- Do create and test at least 2 ad copies per ad group. It will help you identify best ad of the 2, so that you can pause poor performing one. This can also help you control your spend.
- Initially target keywords on 3 or 4 position in order to avoid spending too much (if run on top positions) and still maintaining good CTR on your keywords and thus good average Quality Score
Points to Note:
- When your ads are shown more often, your total daily cost might be up to 20% more than your average daily budget. However, you won't be charged more than your average daily budget multiplied by the average number of days in a month (30.4).
- If you are unsure of how to allocate your budget to all the active campaigns then create a shared budget through Shared Library. Apply that shared budget to all the active campaigns. Let it run for a week or two and then based on the performance of each campaign you can later allocate the budget per campaign and remove shared budget.
Do let me know if you still have any queries.
Re: Budget strategy
Hi thanks for your thoughts, that's useful.
The offer is UK only, so I've already narrowed it down to that.
I'm using Exact Match only for the moment.
I already set to standard.
I should probably gather some data first before ad scheduling.
I have already excluded mobile devices until I can create a mobile version of my site.
I will look at the 2 ads per adgroup thing.
I've already got a set of focused campaigns and adgroups around competitor brands. I have multiple campaigns though so it's not £40 across all budgets but £40 per day on each campaign; which is why I think i could easily spend my monthly budget in a short space of time. The question is, in your and other people's opinions is it better to spend quick to get the data fast or to spread it slower, i.e. limit campaign spend to say £10 to gather the data slower (and manage risk) or will that affect quality score?
And, is there a way to set budget either via monthly spend or total spend?
Re: Budget strategy
If you have not yet gathered the data, then probably you would want to spend quickly as it will help you gather the data in lesser time and then based on the data you can decide on further course of action. While doing so I would still not recommend to target top 2 positions, at least right from the beginning. It is advisable to adjust the positions based on keywords performance. Running your keywords between 2 to 4 position will still help you gather data and you will be able to test your keywords for a longer period of time.
Managing account with limited budget has always been challenging. In both the cases, i. e. spending 40 pounds per day or 10 pounds per day, your keywords will not be shown throughout the day. And this may impact your conversions e.g. someone searched for your keywords and clicked on your ad, checked your site but did not make purchase as he is still in research mode. Some time later he again searched for either same keyword or different, which you also have in your account, but due to limited budget your ad did show at that time, and if the user had decided to purchase at the same time, then you will miss the opportunity.
In AdWords it is not possible to set monthly budget but only daily budget. In MSN or Bing account it is possible to set monthly budget. And Bing/MSN has quality traffic and better conversion rate as compared to Google, but yes, the traffic is lower.
Re: Budget strategy
Hi @Yue Ting C the decision over budget is a difficult one. As you have said, spending quickly will gather data more quickly, but there are some drawbacks to this approach.
Firstly, without any existing data you don't know whether your campaign (in the overall sense) is going to perform better at some part of the month, or a particular day of the week, etc. If you spend highly and quickly you could gather a lot of data but you may also spend all your money in what is actually the worst period of the month for your product.
Secondly, you'll need to think about returning visitors. Frequently a conversion comes from more than one click and can often include direct visits or organic visits in that "path". If you advertise for only a short time you may find you're not showing your Ads when someone searches for your product the second or third time. If that time is when they're ready to buy you may have done all the work then handed them to a competitor who is showing Ads.
Having said this, there's no point in having a budget that's too low because if your Ads show very infrequently you can run into exactly the same sort of problems (timings, repeat visitors) except it's now happening on a daily basis.
You need to try and strike a balance between the two. If you've got several Campaigns, it might be a good idea to run just one - the one you consider most likely to succeed - first and therefore allow that one a greater share of the budget and make the decision easier.
AdWords really does have a monthly budget - it's whatever you set for the daily budget * 30.4.