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Why set a maximum budget on conversion campaings?

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hi

 

I am wondering why you would set a maximum budget on a campaign when focusing on conversions? if an ad is not converting you would change the ad, if the keywords are not converting you would remove the keywords - so that all of your keywords and all of your ads are generating a profit. If it is not proftable you would cancel the campagn/ad as it makes no sense running an ad, focusing on conversions that is not profitable!

 

So why would you put a budget to a campaign only focusing on conversions?

Re: Why set a maximum budget on conversion campaings?

Top Contributor Alumni
# 2
Top Contributor Alumni

Hi Klelund,

 

There are a few reasons to apply budgets to campaigns. 

 

You would never be able to guess all the different combinations of phrases that could convert for you so you need to have what I call "discovery" keywords, adgroups or campaigns.

 

This will help you find new keywords to add to a better performing campaign.

 

It can also take a long time to find out the best performing keywords in new campaigns so a daily cap on this limits the damage potential if things go wrong.

 

A lot of the time companies will have an annual marketing budget and this can be the reason to apply daily caps on the spend.

 

If an advertiser is a small business they might only need to spend a smaller amount to get the work they need to be fully booked out. You can recommend expanding the business but some people like to keep it small and are happy.

 

I do agree with you in general though. If it's making a profit, keep the spend going.

Re: Why set a maximum budget on conversion campaings?

Follower ✭ ☆ ☆
# 3
Follower ✭ ☆ ☆

Would you put discovery keywords in seperate ad-groups - and if they are converting adding them to the correct ad group, loosing all data?

 

i.e. having ad-groups for keywords that have proven to be converting and ad-groups for testing new keywords?