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Setting a Budget

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi all,


Would like to start off a discussion about setting up initial budgets for campaigns.


Many Adwords clients will have a predetermined specific budget they want to spend. If this happens  - how do you decide if it's enough or how many campaigns you will run?


Or if asked to suggest a recommended budget and resulting conversions how do you set about working this out?


All input welcome, looking to expand my Adwords knowledge!




1 Expert replyverified_user

Re: Setting a Budget

Explorer ✭ ☆ ☆
# 2
Explorer ✭ ☆ ☆

Hi Emma,


In situations where the client has not given a predefined budget, it is important that you know the most important themes that they would like to advertise on. Based on this information, you can use the Keyword Tool to find our search volumes and approximate CPCs. You can then consider a CTR of about 1% or 1.5% depending on the industry you are advertising for and the kind of keywords you have picked. This will give you an approximate cost and you can then suggest the monthly budget to the client.


The same process must be followed even when you have been specified the budget. This should be done, primarily, to ensure that you inform the client in advance that the budget specified is lower than required and the keywords that you have to target have higher competition and may be more expensive. This would result in reduced visibility and could lead to a non-profitable campaign as your budget may get exhausted early on in the day.


Hope this helps.


- Heta

- Paid Search Marketing |

Re: Setting a Budget

Explorer ✭ ☆ ☆
# 3
Explorer ✭ ☆ ☆

Hi there


There are a lot of ways to approach this and no right or wrong answer really.


Depending on your adwords experience (or the experience of whoever is running the account) you could start of fairly small, make sure you're happy with the return and performance and then push out harder.


Similarly you could push budget into areas that you know (if you do - from organic data etc.) that convert and less budget into those you aren't sure of.


It's really about setting a budget you're comfortable with and keeping a close eye on it to make sure you're not losing money and are happy with the return.


As you get more data coming through then you will get a better understanding of what your budget needs to be.


Hope that helps.




Marked as Best Answer.
Accepted by LynnyRose (Follower ✭ ✭ ☆)
September 2015

Re: Setting a Budget

Follower ✭ ✭ ✭
# 4
Follower ✭ ✭ ✭



This startegy depends on lots of factor like Budget amount, campaign duration, number & type of campaigns & their spending potential etc. 

But to put this thing broadly, I usually do it like this way (for short tems campaigns like of 1-2 months) :


1. Identify the daily budgetv - Total Budget/Duration (Number of Days)

2. For initial 1-2 days, assign 20%-40%, of the daily budget to campaign(s) - This is for testing purpose, to ensure that the campaign has been set up as per requirement & all elements (keywords, ads, destination url) are in place, correct & working fine - At times manual error while creating/uploading campaigns like broken/incorrect destination url's, incorrect/misspelled ad copies etc., may result into wastage of ad spend for no result. 

3.Once you are sure that everything is in place, increase campaign budgets to 120% of the actual daily budget.

4. Towards the end of the campaign (usually a Week) start gradually pulling down daily budgets on a daily basis, to end the campaign on the due date with almost all the available budget exhausted.


Please note that google may overspend by 20% of the allocated daily budget, so one should closely monitor the spending pattern of the campaigns & make changes accordingly in daily budget.


Hope this will help!





Re: Setting a Budget

Badged Google Partner
# 5
Badged Google Partner

Who's writing the check? What is their opinion about advertising? 


CON: Advertising in any way shape or form is a complete and total waste of money, that's coming out my pocket! 


PRO: I know I need to advertise to grow and expand my business, but I'm not made of money!


In the CON scenario, how much money would be willing to "lose"? That's your initial advertsing budget. You could spend all that money in one click, you could get impressions (free advertising) for years. It all depends. 


PRO: This also depends on the business of course, but the P/L and ROAS calculations are the key. That should determine how much you should spend if you want to grow your business in a sustainably profitable manner. As long as you are making a gross profit, spend more if you make more. Keep spending more (incrimentally, within your budget, and reason of course) until that profit model starts to go back down. Now you have a baseline of success, and you can work the margins from there.


Unlike any other form of advertising a business, PPC advertising gives you the control to determine your budget. What you do with the information gained from that market research is up to you. No matter how high or low your daily budget is, know what the goal of the advertsing is, determine the value of acheiving that goal, and as long as you are making more than you are spending, keep spending and making more money. If you are not now, or don't know if you are earning a positive ROAS, decide how much you want to "lose" to try and find something that works.


Re: Setting a Budget

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

How do declare and publish it across sites

Re: Setting a Budget

Community Manager
# 7
Community Manager
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