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[Discussion] How do you make sure you are using your budget efficiently in AdWords?

Community Manager
# 1
Community Manager

Hi Community,


We're going to kick off our weekly best practice sharing series! As you probably know, we have free AdWords courses that we offer within our Help Center. They're great resources, especially if you're new to AdWords and online marketing.


We're going to start a weekly quiz series where we ask a question that can be answered through one of our courses. This week's question is from Online Marketing 201.


Question of the week:

How do you make sure you are using your budget efficiently in AdWords?


Anyone can answer (you don't have to have taken the course) - so let's see who can get the most stars for their response!


Get posting below!


2 Expert replyverified_user

Re: [Discussion] How do you make sure you are using your budget effici

Follower ✭ ✭ ✭
# 2
Follower ✭ ✭ ✭

I'll take a shot!

All about results right!  Assuming conversions are all of equal value...

Let's get that cost/conv down for our valuable, targeted users within the same budget.

If your budget is being hit daily that is a huge sign for opportunity!  I like to optimize until my budget is just barely being hit daily.

You are likely bidding too much, paying more per click than necessary.

In most verticals, conversion rates don't drop with lower position.
But check your data first.  You can segment by "top v. other" to make sure.

Optimize, Optimize, Optimize!
Bid down or pause those broader keywords that aren't giving you as good a return, or as good a cost/conv.
If in the process it makes sense to pause keywords, then great!  You can manage fewer keywords with more focus.
Analyze that data.  Check your performance for regions, devices, hour of day, day of week, and so on and so on and so on Smiley Happy

Short answer, more bang for the buck!

Looking forward to seeing other response


Re: [Discussion] How do you make sure you are using your budget effici

Participant ✭ ☆ ☆
# 3
Participant ✭ ☆ ☆

To know whether my Adwords budget is spent efficiently, I run few reports. Here are they-


Adwords Search terms report:

With this report you can find the incoming search terms for your Campaigns.

Analytics Matched Search Queries:
Analytics Matched Search Queries is the another place where I will check to know incoming search terms for my campaigns.

*If any search terms are not relevant then I will add those terms in the negative keywords list.

Dimensions > User Locations Report:

With this report you can know from which locations your campaigns are receiving clicks, are they coming from targeted locations or not.


*Depends upon your campaign specific goals you can customize the table in the Dimensions Tab to know more statistics.

Conversions Metrics:
Conversions metrics like conversions and converted click reports to know how many people are converting after they click the ads.


Click Conversion Rate:

Click conversion rate is the another metric we have to check to know the percentage of clicks that converting (Number of conversions/Number of Ad clicks).

Quality Score of Keywords:
Quality Score of keywords is the other metric we have to check to make sure that our budget is spent efficiently because if the quality score is low then is it known that we are paying high on each click and if the quality score is high it means that you pay less per click.


These are some of the basic reports we have to check to make sure that we are using campaigns budget efficiently.

Re: [Discussion] How do you make sure you are using your budget effici

Explorer ✭ ✭ ☆
# 4
Explorer ✭ ✭ ☆

Half the money I spend on advertising is wasted; the trouble is, I don't know which half. - John Wanamaker

But here we know where we wasted our money, Good thing is we can reduce our waste also..Smiley Happy


First off all grate posts by John Paul Sing & Justin thank you for your valuable suggestions.


Here is my way to analyze the budget spent on AdWords. (My view is most suitable for search only campaigns)


  • In initial stages of account setup I will set up account according to advertiser goals.
    After couple of weeks of monitoring I will create a report with 5 Categories.
  1. Keywords which are generating high conversions with low cost.
  2. Keywords which are high generating conversions with high cost.
  3. Keywords which are generating conversions cost that meet ROI.
  4. No conversions Low CPC.
  5. No Conversions and High CPC.
  • I will try to remove last category or pause or change match type to restrict clicks for those keywords and I will add more negative keywords.
  • I will add more ad variations to the fourth category to improve conversions or I will split ad groups to improve more relevancy for this keywords without affecting keywords avg. CPC
  • For third category I will compare stats with first category to find out difference and will keep monitoring them.
  • For fourth and fifth category I will add more keywords related to this category. And I will try to improve Q.S for fourth category to reduce the cost.

After couple of weeks I will compare the result with first fort night I will priorities the changes depend up on the category low to high.


I will do the same process for every two week and compare the growth in the ROI.


To control spend for high CPC keywords I will set Automated rules for keywords to pause after spending max amount without any conversions. It will save you lot of money if your goal is only pure conversions.


Also I will make sure that all my keywords having Q.S above 6.


I will keep an eye on my campaign dimensions and I believe reporting and compare reports will tell where you lost your money most of the time.



Suggestions for my post will appreciate.




Re: [Discussion] How do you make sure you are using your budget effici

Top Contributor
# 5
Top Contributor

I aim Returns on Investment (ROI) and Returns On Advertising Spends (ROAS). When the goal is to make these two figures as higher as possible, the metrics like click, impression, and CTR etc. start falling in the right place with proper and consistent optimizations. 


I always keep a close eye on the overall advertising costs and the returns thereon. When the returns start coming along as expected, I say that budget is being used efficiently. 


However, there can be cases when despite having an optimum conversion cost, certain campaigns may be failing to use the entire assigned budget. In such a scenario, I usually start with exploring new targets, expanding reach by adding more keywords, writing new ad copies, sub dividing keywords further into adgroups based on themes, using more ad formats, adding more campaigns if desirable, and so on....


In another case, certain campaigns might be confined by budget and using it everyday. If so, I get ahead to remove this confinement by adding more dollars to the budget for such campaigns. It allows them to accumulate more on impressions, clicks and conversions. 


Though, if the client does not allow budget increase for any reason at that moment. I usually theme such campaigns more tightly so that costs on less profitable clicks  can be avoided and the campaigns can be restricted within the assigned budget, but can still run ads throughout the day.


My two cents. 


Ratan Jha

About Me: Community Profile | Ratan Jha INC.
If this or any other post solved your question, do not hesitate to accept it as the solution.

Re: [Discussion] How do you make sure you are using your budget effici

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
To do so you have to run few adwords reports :

See - We have to check from which location traffic is coming.
How - To see this report : Dimensions > User Locations Report, Dimensions > Geographic Report
By doing this you will come to know the location from users are coming.
If you find user location different (not your targeted location)
use Advanced location options let you include or exclude people based on where they're likely to be physically located or the places that they're interested in

See - Search term Report
How - To see this report for your keywords : Dimensions > Search Term Report
A list of search terms that people have used before seeing your ad and clicking it. Use this report to refine your keywords so that only the right searches cause your ad to show
If you find any irrelevant keywords then add into negitive keywords list

See - Segment Report
How - : Keywords > Segment > Network (with search partners)
You can now see how Search Partner performance compares to Google Search
If you find not getting conversion from search partner you can utilize more on Google search Network.

See - Enable ECPC
How - In keyword section check how many keywords are performing gud in terms of conversion. Use ECPC Which Increase your bids Upto 30% on performing Keywords and Reduce bids Upto 100% on non performing keywords.
If this function is already enable than try without ECPC Bid Function so every keyword have chances to perform.

See - Conversion Report
How - Check how many conversion you are getting from your campaign and try to optimize the time when most of the conversion happening in day, week or monthly basis

See - Device Performance
How - To see this report : Campaign > Setting > Device, Campaign > Keyword > Segment > Device Type
These are the two way via you can see your keyword performance report on devices. So according you can allocate budget by analysing which device is performing gud in terms of conversion

See - Bid Strategy
How - Shared Library > Bid Strategy > Choose any Bid Strategy
You can set any bid strategy by focusing on conversion

See - Ip Tracking Report
How - Campaign > Setting > Advance Setting > Ip Exclusion
You can use third party tool for tracking ip of those visitor who are coming on your website if you find maximum visits from any ip exclude that.

See - campaign structuring
How - Create Product wise campaign and allocate budget according, Beakup Keywords into relevant theme's in adgroups Helps to improve Keyword quality score & improve CTR

See -

Rahul Bisht

Re: [Discussion] How do you make sure you are using your budget effici

Community Manager
# 7
Community Manager

Great job everyone! But kudos to @Justin F - winner of this week's "Answer of the Week"!


Want to give this week's question a try? Check it out here!