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CPC vs ECPC; limited budget; conversion values

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# 1
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Hey Adwords Community,


Thanks for your help in previous conversations! I am a learning advertiser.

I have a few more questions:


1.) Do you (as an advertiser) use manual CPC or ECPC?


2.) What would you consider a limited budget? (For example, a client wants 5 campaigns of 5 different products highlights with a budget of $500 per month; equating to $100 per campaign; $3.33 per day per campaign) That is a limited budget. Is there a monthly value (Ex: $300 per month) that you think should be a minimum? I understand there is no "minimum" but I want my clients to get results and not waste money.


3.) How often do you calculate conversion values for clients? (Ex: Word of mouth, etc.)


I really appreciate your time. I am self learning which is why I am eager for responses.


Best Regards,

Cole Lusby

1 Expert replyverified_user

Re: CPC vs ECPC; limited budget; conversion values

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# 2
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Hi Cole,

Great questions.

1) On Brand campaigns I steer clear of ECPC as I want to drive as much traffic as possible.

On non-brand campaigns I will test ECPC if I have got a decent amount of conversions for the campaign (a decent number depends on the size of the campaign).

When you have a good number of conversions for your campaign run ECPC for a week or two while keeping an eye on the performance on a daily basis. If you find that performance has improved, great if not, ditch it.

2) If ever I have a client who has a limited budget I will not put a time frame on when that budget will be spent. I will simply say that I will run traffic through the account, monitor spend and optimise accordingly. a $500 budget is a $500 budget regardless of whether it lasts a week or 3 months.

3) I would send out a weekly report first thing on Monday. An excel doc showing rows for the Daily Adwords performance as well as the E-commerce data pulled from Analytics with the sum of all metrics in the bottom row. In a separate worksheet i would show the historical weekly performance, one week per row.

At the beginning of the month I would compile the daily figures for the whole month and similarly to the weekly report, have a worksheet for the historic weekly performance

If the client wishes I would also have a weekly call where I would discuss what work has been done on the acocunt, the performance fr the week and top level information as to what will be worked on the week ahead.

This is also a great opportunity to find out if the client has anything planned in terms of promos or whether they have any products that are no longer available etc. so you can amend the account accordingly.

Let me know if you have any other questions.


Re: CPC vs ECPC; limited budget; conversion values

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# 3
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Great input on 1 and 3. Thanks.
Follow up for number 2:
Is there ever a minimum monthly spend that you say won't work? (I understand this may vary depending on industry).

The reason I say this is let's say their budget is $100 a month or $3 a day. This will affect bids so much so that they won't be near the top (in a competitive industry) and potentially be throwing away $100 a month with no results. Do you have a minimum you recommend for clients. I am thinking of $300 a month; equating to 10$ a day.

Thanks so much,

Marked as Best Answer.
Accepted by topic author Cole L
September 2015

Re: CPC vs ECPC; limited budget; conversion values

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# 4
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Clients are NEVER throwing money away. They are INVESTING.

I would personally steer clear of clients who can't afford to invest a decent amount of money up front for you as the expert to run some traffic through an account to get data and optimise effectively.

You need to tell clients that without a decent amount of ad spend you cannot do your job properly (not in those words obviously).

If you take on clients with $100 budget and they see no results you do not have enough data to go back and say. "OK, we didn't see a return but we have learned x, y and z. If we change a,b and c we can forecast that you'll see these results." Instead your left saying "I don't know why it didn't work" and the customer will leave thinking it's a scam.

Clients need to INVEST in a strategy that takes time, money and data to increase the performance of their accounts.

Besides if they only have $100-$300 to spend per month on ads, what's your management fee? You're an expert in your field. You have spent months/years learning your trade. Don't sell yourself short. They need to invest for your expertise.

I hope this helps.

Re: CPC vs ECPC; limited budget; conversion values

Top Contributor
# 5
Top Contributor

Hi Cole, I'd like to underline what Ryan has already said.  I always recommend that any Campaign should run as close as possible to a 100% Impression Share as possible and $3 a day is not going to be even close to that in most cases.  As Ryan - and you - have said, the most likely outcome of operating such a low daily budget is poor performance and the advertiser can end up with a poor view of AdWords when proper investment may have yielded positive results.

Regretably, it's very common to see these low daily budgets which stand little chance of good performance and I'd advise you try to avoid them whenever possible.  If a client insists on a less than ideal budget, there's some things you can do to make them work better:


#1  Run the Campaign over a shorter rather than a longer testing peiod.  $100 is only $3 a day if spent over a month but it's over $14 a day if spent in just a week and that might give you a better shot, depending on your CPCs.


#2  Make sure you schedule your Ads tightly - don't go 24/7 - and consider other targeting limitations like geography, demographics, etc.  


#3  Consider carefully how many Keywords you use - the fewer you have the more budget available for each one.  Don't have 100 long-tail Keywords and try to share $5 between them.


On your other point about conversion tracking, I typically aim simply at the "hard" conversions such as sales.  However, it's a great idea to track others and assign them relative values such as significant page visits, form completions, newsletter sign-ups.  When it comes to more difficult conversions such as those by word of mouth I tend to argue that if I can prove a strong positive return on investment via the "hard" conversions, then the likely total impact of AdWords is only going to be much higher.  In other words, if the client is happy with what you can measure, think about how much better things are if you take into account all the things that can't be measured!  That doesn't mean to say you shouldn't try - there are all sorts of ways to track the longer paths so be inventive!



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Re: CPC vs ECPC; limited budget; conversion values

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# 6
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Thank you both.