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CPC when budget is limited

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# 1
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As a general rule of thumb, would you say that when budget reaches daily its limit, it is a good idea to try reducing a little bit the CPC in order to get more clicks?

 

Thank you!

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Accepted by topic author Arturo P
February 2016

Re: CPC when budget is limited

Top Contributor
# 3
Top Contributor
Hi Arturo,

In general, I would recommend not having your campaigns capped by daily budgets but instead utilizing your CPC bids and keyword status to control spend. To elaborate, say you have two keywords in a campaign that has a $100 daily budget (which is reached at about 3pm every day). Say keyword 1 performs very well and keyword 2 performs just alright. Instead of being live on both of them for part of the day I would recommend lowering the bid on keyword 2 (or even pausing it) so that you can have keyword 1 live the entire day and gain more conversions (or whatever you optimize to).

To answer your specific question, I would say that it's not useful to reduce CPCs when daily budget is reached as you likely won't be able to gain many more impressions regardless of bids.
Jim Vaillancourt, AdWords Top Contributor, LinkedIn
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Re: CPC when budget is limited

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# 2
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Hey Arturo, how are things?

Personally I wouldn't change the CPC as the budget is ending, instead, I'd recommend setting a custom ad schedule for your campaigns. By analyzing the Hourly results on "Dimension" tabs, I'll be able to find what hours are best for your business and configure with your needs. You can even increase/decrease your bid to try and get better results.

You can learn more about this here: https://support.google.com/adwords/answer/2404244?hl=en

Hope this helps.

Leandro Martinez | Basta1Click

Marked as Best Answer.
Solution
Accepted by topic author Arturo P
February 2016

Re: CPC when budget is limited

Top Contributor
# 3
Top Contributor
Hi Arturo,

In general, I would recommend not having your campaigns capped by daily budgets but instead utilizing your CPC bids and keyword status to control spend. To elaborate, say you have two keywords in a campaign that has a $100 daily budget (which is reached at about 3pm every day). Say keyword 1 performs very well and keyword 2 performs just alright. Instead of being live on both of them for part of the day I would recommend lowering the bid on keyword 2 (or even pausing it) so that you can have keyword 1 live the entire day and gain more conversions (or whatever you optimize to).

To answer your specific question, I would say that it's not useful to reduce CPCs when daily budget is reached as you likely won't be able to gain many more impressions regardless of bids.
Jim Vaillancourt, AdWords Top Contributor, LinkedIn
Was my response helpful? If yes, please mark it as the ‘Best Answer.’ Learn how here.

Re: CPC when budget is limited

Follower ✭ ✭ ☆
# 4
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Thanks a lot Jim!

Re: CPC when budget is limited

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# 5
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Thanks a lot Leandro!

Re: CPC when budget is limited

Top Contributor
# 6
Top Contributor

Hi @Arturo P further to the useful replies you've already received, I'll just add a couple of other points:

 

Whether you reduce your CPCs depends a lot upon your current position and performance.  If your Ads are appearing consistently around position #1.0, I'd certainly say you could reduce CPCs, in fact, I rarely allow Ads I manage to get above position #1.5 on average (the exception being branding) so look at where your Ads are appearing and consider whether it'll be harmful to allow them to drop lower in the results.

 

Do look at Ad scheduling bid adjustments - it's quite possible you'll have hours of the day with better performance and worse performance and some simple bid adjustments could spread that budget more evenly and usefully. Look also at days themselves - do you need to spend as much at weekends, or on Mondays?

 

Look also at your geo targeting.  You don't say what area you're covering but if it's reasonably large it could be that you could adjust the area targeted to make better use of the budget.  For example, if you were targeting England, Scotland and Wales in the UK, examination of their stats might show that Wales spends a fair bit but never converts, so you could consider either bid adjusting strongly against Wales or even dropping it altogether.

 

It might also be worth considering a budget control Script to make better use of monthly allocation.  Unfortunately, AdWords works on a daily basis and doesn't (really) compensate much for over and underspend on different days.  Scripts would allow you to adjust daily budgets to hit a monthly target almost exactly, allowing more spend on some days, paid for by days that underspend.

 

Jon

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