AdWords
3.3K members online now
3.3K members online now
Improve your AdWords performance and boost your ROI, CTR, and Quality Score
Guide Me
star_border
Reply

How to divide budget according to regions?

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi I need divide my budget according to performance:

 

 

 

Amount of conversion/per day

Cost per conversion

Profit per user

France

300

1

1,3

Brasil

500

0,1

0,7

Hungary

50

0,5

1,2

 

How to divide my daily budget 1000 USD effectively to maximize profits?

 

 

Thanks for answer.

How to divide budget according to regions?

Participant ✭ ✭ ☆
# 2
Participant ✭ ✭ ☆

You will need to replicate the campaign, geo-target each one, and allocate the appropriate budget to each campaign (region).  Geo targeting is set at the campaign level, within AdWords. 

 

hth

 

How to divide budget according to regions?

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Hi thanks for reply how would you effectively set the budget for each country?

 

 

 

How to divide budget according to regions?

Participant ✭ ✭ ☆
# 4
Participant ✭ ✭ ☆

It depends upon your business criteria. I would look at the conversion rates, CPA, product margins, and the search impression share. Sometimes, CPA can be quite good but there is not adequate demand for the product or service.  

 

If the objective is to maximize gross profit, then i would first buy all the search impression share I could get in the country with the lowest CPA.  Then allocated budget to the country with the next highest CPA.  But sometimes other factors can come into play (shipping costs, etc). 

 

How to divide budget according to regions?

Badged Google Partner
# 5
Badged Google Partner

I agree with Steve, with perhaps one small exception - What works in one region may not work in another. Before you simply duplicate the current campaign for all three countries, see if you can do some more analysis to find out what works best in each country. Do you have analytics for this account? The more geographic data you can parse out per country/location, the better the chance that any new campaigns will start out more profitably.

 

It looks like you have the best chance to increase profits and volume in Brazil... The margins are slightly better in Hungary, but the volume is the lowest of all markets. If you only targeted Brazil in the current campaign, do you have enough budget to maximize impression share? What happens to the margins and overall profits at that point?

 

If you have a mandate to advertise in all three markets, then that may change things.

 

Perhaps targeting Hungary alone in the current campaign, and maximizing impression share there would be the place to start. With the best margins, but the smallest market, you would know pretty quickly how much of the budget it takes to maximize your returns.

 

Then find the one term (or small handful of terms) that work best in France, and create a very limited campaign to explore that market, and see what kind of budget that takes to maximize returns at the same margin.

 

Once you have those markets nailed down, use all the budget you have left to explore the highest volume / most profitable market of Brazil.

 

Then you know you are accomplishing your mandate first, and dedicating the most budget, time and effort into the market which shows the greatest potential for growth. If you can quickly and efficiently improve returns, and prove there is more market share available, then you may have more budget to work with.

 

Tom

How to divide budget according to regions?

Participant ✭ ✭ ☆
# 6
Participant ✭ ✭ ☆

That's a great point, Tom.  It would be a rare campaign that would behave the same in three different countries.  A lot of great methodologies for approaching this one, in your post.

 

The problem with splitting the campaign before it is optimized is you are creating three optimization projects, running in parallel.  So as Tom advices, best to optimize in one country first, identify the workhorse ads before entering a new market (geography) with the same campaign.

 

How to divide budget according to regions?

Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

Hi thanks for answer is it correct to divide budget in this way: 

 

 

Amount of conversion/per day

Cost per conversion

Profit per user

France

300

1

1,3

Brasil

500

0,1

0,7

Hungary

50

0,5

1,2

 

France 200 USD

Brasil 700 USD

Hungary 100 USD 

 

Thanks best regards Joe.