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Getting Conversions with very tight budget.

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# 1
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I will be managing an adwords account and will be working with very tight budget. In the market where I will be competing min CPC to get first page starts from $5 and good convertible clicks starts from $8. My daily expendable budget is $175. I will be bidding on top exact keywords and at present shortlisted 60 of them.


I will bring it down to 20-25 or even less after campaign starts. The call to conversion percentage is 10%. Avg revenue per conversion is $60. Daily cost to keep sales staff is 365$. Taking into account 15-20% other deductions in revenue( like tax). I know it requires working out some math to get a clear picture, but I will be grateful to one who can guide me further.


It looks tough but Its a good challenge.




Re: Getting Conversions with very tight budget.

Top Contributor Alumni
# 2
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Hi Ujjwal,


Based on your projections I'd advise that you don't go ahed with this, unless I am missing something. From the info you have provided I deduced the following:


1. Budget of $175 a day at an avg CPC of $8 will allow for 22 clicks


2. Conversion rate of 10% based on 22 clicks will be 2.2 calls on avg per day


3. Avg revenue per conversion of $60 multiplied by 2 conversions = $120 revenue a day


4. Your total costs per day are $175 clicks + $365 staff costs = $561 per day


5. Therefore you would be working at a loss of approx. $440 a day ($560 - $120)


You'd need to figure out a way to make this profitable (or at least not loss making). Here's some ideas:


1. Manage a lower CPC; I don't know where you got your initial data from, possibly he estimator, but I suggest you see if you can find some cheaper keywords or keywords that will allow a lower bid and position


2. Reduce your staffing costs - based on the above you'd only get 2 calls a day; does this really require $365 worth of staffing?


3. Increase your ad budget - if you can increase your initial clicks budget then with a conversion rate of 10% you could definitely make this work but I know that's easier said than done. For example if you could get a budget of $1,000 a day you would get 125 clicks at the same CPC of $8 which with a conversion rate of 10% would be 12.5 calls per day and as such $750. This still wouldn't work at that CPC for you, but if you halved the CPC to $4 you would all of s sudden get twice the traffic and as such $1,500 revenue per day which would more than cover your $1000 on clicks and $365 on staffing. So, this could be your notional breakeven point and you can build it from there.


I realise all of the above is hypothetical and I don't know if it's even what you wanted to hear. Hope it's of use and good luck.


Jack Porter-Smith
Jack's G+

Re: Getting Conversions with very tight budget.

[ Edited ]
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# 3
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Hi Ujji7


I notice you have another, not unrelated post, "How To Get More Clicks".


Lets try to mesh the two questions "How to Get More Clicks" and "Getting Conversions with very tight budget".


Always keep in mind that your ad should be considered as the tool or means to generate traffic to your website or landing page, and once there, your landing page should be designed to convert the user / visitor. In other words your ad(s) should catch your taget audience and your designated landing page should convince them to carry out your call-to-action.


I suppose with regard to your ad, the trick or aim here is to try and get relevant clicks, from genuine and interested users, who are at the relevant stage of the buying cycle, and interested in the product / service you provide. Remember it is better to get 10 clicks from users who will fulfill your intended call-to-action, than getting 10,000 who do not!


Using tatics such as 


1) Try, if possible, to show prices in your ad text - this will help entice genuine interested users to click on your ad e.g. if your product / service is more expensive than what they are prepared to spend, they shouldn't click on your add costing you wasted cpc. Same could also apply if your product / service is too cheap e.g. if you are selling a luxury item e.g. fur coat.


2) Use a strong call-to-action and try to briefly highlight the benefits of your product or service. A strong suitable call-to-action should encourage users to click on your ad and ensures they understand exactly what you expect them to do when they reach your landing page. Some call-to-action phrases are Buy, Sell, Order, Browse, Sign up, and Get a Quote. It will also help ensure that you capture users who are at the right part of the buying cycle. 


3) Once your ad has done what it is intended for i.e. attracted interested people / potential conversions to your website, you should make sure they can easily find the information, product and/or service you are offering and they are looking for. Google Analytics Content Experiments is a very useful feature which can help advertisers test how well various landing pages work in getting visitors to accomplish a specific goal or call-to-action – such as purchase a product or service etc. In turn, this can help you increase your revenue and ROI and make the most of every visitor who comes to your website. You can read about the Google Analytics Content Experiments here.


You can also read a useful article on Improving Your Website here.



There are numerous other small tatics / tips that are all equally as important. Google has a fine article on same which you can view here. It covers such areas as 

  • Identifying your advertising goals.
  • Organising your account for maximum effectiveness.
  • Choosing relevant keywords and placements.
  • Creating straightforward and targeted ads.
  • Optimising your website for conversions.
  • Tracking the performance of your account.
  • Testing and modifying your campaign(s) to get the results you want.

One great feature you should implement, If your campaign is eligible, is the Conversion Optimiser tool / feature, which will help you increase your conversions and decrease your cost-per-acquisition. You can read about this feature here.


I hope I didn't waffle on and find the above helpful.


Please let us know how you get on.



Re: Getting Conversions with very tight budget.

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# 4
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First of all a very great thanks to Jack and Dave for writing detailed answers. 


Jack you have certainly given very plausible alternatives.


Dave, I guess you are referring to my answer to the post "How to get more clicks?". The analysis you have done is very helpful and I will certainly imbibe those suggestions.


I want to tell more about the real scenario as far as I understand. The market in which I will be competing is very competitive market with 30-50 bidders bidding at peak time of the day. Setup cost for this kind of setup is very low. So it has almost minimal entry barrier. Therefore people who are in this busiiness don't have big requirements when it comes to margin.

They are ready to work with narrow margin, driving this market competition to a high level. 

At present I can't think I will be able to find a new micor niche in this market. But given my budget constraints I will be focusing more on sales process like you guys have suggested than on adwords.

But if I get a top QS then it will be much better. I will fight for gud QS from the start then see in a few months situation improves. 

Will post here how I did it. Anyway hows the Perry Marshall stuff? Is it gud enough to get you starting?