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Budget Adjustment effects?

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# 1
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Hi Adwords Expert,

 

If I changed (increase/decrease) my budget of my campaign for one month so, is their any effects on other stats (like: CPA, CPC, CTR, Conversion ratio, Avg. position, adRank, Quality Score, Conversions etc.)?

 

Thanks in Advance.

 

Thanks & Regards,

Prasad S. Mundrawale

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Accepted by topic author Prasad M
September 2015

Re: Budget Adjustment effects?

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# 2
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Hi Prasad.
Welcome to the community.

Actually, there's no real way to tell as budget doesn't DIRECTLY affect the metrics you mentioned. The only way to tell is to increase your budget and see. In general, budget itself wont impact ANY of those metrics, it will just give you more prolonged exposure. However, that additional exposure, during key times, may increase or decrease clicks and by proxy, your other metrics.

If we knew that increasing our budget would increase our quality score, I think we'd all be doing it Smiley Happy
Marked as Best Answer.
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Accepted by topic author Prasad M
September 2015

Re: Budget Adjustment effects?

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# 3
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Hi Prasad, as Dave has said, budget alone won't directly affect many metrics although it can have an effect depending upon how the increase or decrease of budget affects exposure.  However, one of my current favourite topics is the effect of budget upon conversions.

 

In a situation where there are a given number of available clicks in any day, and a given number of those clicks will convert (the conversion rate), your budget can have a surprising effect on conversions received because where budget is less than necessary to capture 100% of those available clicks, the likelihood of receiving any number of conversions becomes an exercise in probability.

 

For example, let's say for one particular keyword there are 100 clicks available each day for your targeting settings and you know that when you capture all 100 clicks you get 5 conversions (a conversion rate of 5%).  (For the purposes of this example, we'll have to assume the conversion rate is always 5%).  If your budget can afford all 100 clicks your probability of getting 5 conversions is 100%, that's simple.  However, if you drop your budget to pay for only 80 clicks, while might expect to get 4 conversions (5% of 80 = 4), in fact the probability of a minimum of 4 conversions from 80 clicks is just 74%.

 

In short, the relationship between impression share (budget) and conversions is not linear.  The more clicks (impressions) you lose because of inadequate budget the more conversions you lose and the more rapidly you lose them.

 

All this is based upon absolutes which don't remotely apply in the real AdWords world, but it's a valid indication of likely trends.

 

Jon

 

 

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Budget Adjustment effects?

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# 4
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Thank you so much Dave for the reply !!

But How can I maintain my CPA? because, if I increase or decrease my campaign budget the CPA either increase or decrease. I want to maintain my CPA.

Please provide me some better solution.

- Prasad.

Re: Budget Adjustment effects?

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# 5
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Thank you so much Cobnut for the reply.

But How can I maintain my CPA? because, if I increase or decrease my campaign budget the CPA either increase or decrease. I want to maintain my CPA.

Please provide me some better solution.

Prasad.