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If I double my budget, my conversion will double?

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# 1
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Hey Everyone,

 

If I increase my budget up to $1000 per day, it's kind of double my budget now. Will my conversion increase?

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Accepted by topic author Ellen Z
September 2015

Re: If I double my budget, my conversion will double?

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# 2
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Hi Ellen,

 

There is no direct Yes or No answer to this.. it all depends on your Keywords and Campaigns type. You should first try Campaign Experiment 

https://support.google.com/adwords/answer/2385204?hl=en

 

Increase your bids & look at test results. This would help you to determine the right amount of budget required.

 

Preeti 

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Marked as Best Answer.
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Accepted by topic author Ellen Z
September 2015

Re: If I double my budget, my conversion will double?

Follower ✭ ✭ ✭
# 2
Follower ✭ ✭ ✭

Hi Ellen,

 

There is no direct Yes or No answer to this.. it all depends on your Keywords and Campaigns type. You should first try Campaign Experiment 

https://support.google.com/adwords/answer/2385204?hl=en

 

Increase your bids & look at test results. This would help you to determine the right amount of budget required.

 

Preeti 

Re: If I double my budget, my conversion will double?

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# 3
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Yes. I do not know how to set the Control/experiment split. Does the adwords experiment influence the result?

Re: If I double my budget, my conversion will double?

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# 4
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In case the keyword you are bidding is of high demand & position matters for the conversion then enhancing budget can help you achieve goal. Apart form your ad being on top position, adcopy & landing page will even play a major role in enticing viewers click your ad & take required actions on the Landing page.

Preeti

Re: If I double my budget, my conversion will double?

Top Contributor
# 5
Top Contributor
Hi Ellen Z,

You can expect the number of conversions to increase, but probably not double. For you campaigns, add the column for "Lost IS due to budget" first. That will give you an indication of how much traffic you're missing because of limited budget.

AdWords will go deeper into the pool with a higher budget, in an effort to spend it all. It is possible and even likely your CTR will go down with a larger budget, and it may/probably affect the conversion rate as well. A budget increase of $500 is very significant, and a significant risk to take. I usually suggest you role out your campaign slowly at this point. Rather than increase by $500 a day, increase the budget by $100 a day so you can measure the point of diminishing returns. That will give you some data points to examine. Then make your decision on the budget level based on the data you get. With that level budget It shouldn't take very long to get significant results.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords

Re: If I double my budget, my conversion will double?

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# 6
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Thank you so much!

and sRe: If I double my budget, my conversion will double?

[ Edited ]
Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

Hi Ellen,
This is a great question. I suspect that you need a strategy and doubling your budget generally isn't actually strategic, its merely a method of potentially buying more clicks.

In order to understand whether it would truly help, one would need to know, are you directly selling a service or product for which conversion tracking can be implemented or is your campaign more of a branding campaign where you need the visitors but most actual sales are made after the visitor wanders around your site and makes a phone call.

This is what I ask my clients who have Google tracking installed.

Now that you have tracking installed - Can you tell me ?

What hours of the day are most of your conversions taking place?
What days of the week are best for your conversions and what happens on the weekends?
What actual ad Position is best for your cost effective sales? Hint look at epc per position
Are you already running your best sales with QS9 or QS10 keywords? Oops change strategy ...
Is your epc ( Earnings Per Click ) highest at what time of the day and for what device?

Mostly, my clients don't know the answer to these, so it gives us the opportunity to dive into the amazing drag and drop custom reports which are now available. You can literally make a new report in 10 seconds. Then another and yet another ...

If you have been spending $500/daily right now for a while, it means you have a plethora of wonderful data to play "what if scenarios" with in the reporting area.

So, talk is cheap - what have I personally discovered by playing with these amazing tools?

I discovered that for a legal client, over the past 6 months there was 1 hour during the day when lead conversions were 200% higher than the next best 3 hour span.
I discovered that tablets at a specific hour of the day were 3-400% higher than the average.
I discovered that there were a whopping 18 hours of the day that this client's ads shouldn't be running at all.
Plus many more such diamonds of information.

Long and short is this.

All the diamonds above, allow me to take $600/Daily for this client and make it act effectively like $2200. The other big boys in this area are playing with $3-5,000/daily plus.

So, back to your question - Should you double your budget?

My short answer is - Dive in and build some custom reports/charts, discuss their results interactively with someone knowledgeable and set a goal to get the same results that you are getting now with half the existing budget, lol.

Then, when you are truly optimized and happy with the experience, DOUBLE or TRIPLE that darn BUDGET.