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Increased budget results in CTR nosediving

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

 

A few months ago I did some serious work on my account and managed to double my click through rate. I kept my budget constant to make sure that the new level was consistent, with a view to increasing the budget when I was happy that it was consistent.

 

After a month I decided to double my budget to get the benefit of the improved CTR.

 

The result was completely unexpected (to me) - my ad impressions went through the roof which resulted in my CTR nosediving to about half what it was before, or about a quarter of the 'new' rate.

 

This obviously had an effect on both ad placement and ad cost.

 

So I halved my budget and lo and behold, my CTR went back up to the 'improved' level instantly.

 

Has anyone experienced this problem or does anyone have any ideas how I can increase my budget whilst retaining the CTR at the 'improved' rate?

 

Thanks,

RecursiveS

2 Expert replyverified_user
2 ACCEPTED SOLUTIONS

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Increased budget results in CTR nosediving

[ Edited ]
Top Contributor
# 2
Top Contributor

Hello RecursiveS; Welcome to the community;

You should put some focus on your keyword  match types  and your ad-copy for lowering  impressions .

Do you use mostly  broad match?

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

View solution in original post

Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Increased budget results in CTR nosediving

Collaborator ✭ ☆ ☆
# 3
Collaborator ✭ ☆ ☆

It's worth checking your bidding options as well.

 

If you are on manual CPC it does sound a bit odd but if you are on automatic bidding I could see this kind of behaviour.

 

On automatic if some of your higher CTR words were already getting a high impression share, by increasing your budget, a big portion of the increase may have gone to much lower CTR keywords.

 

Check if the increase in impressions on ALL keywords his risen and by what proportion.

 

It helps if you group high CTR terms together (8-10%) then (6-7%) etc if you want to do this quickly and compare 2 date ranges, one before and one after the increase.

 

This could help give you some insight.

View solution in original post

Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Increased budget results in CTR nosediving

[ Edited ]
Top Contributor
# 2
Top Contributor

Hello RecursiveS; Welcome to the community;

You should put some focus on your keyword  match types  and your ad-copy for lowering  impressions .

Do you use mostly  broad match?

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’
Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
September 2015

Re: Increased budget results in CTR nosediving

Collaborator ✭ ☆ ☆
# 3
Collaborator ✭ ☆ ☆

It's worth checking your bidding options as well.

 

If you are on manual CPC it does sound a bit odd but if you are on automatic bidding I could see this kind of behaviour.

 

On automatic if some of your higher CTR words were already getting a high impression share, by increasing your budget, a big portion of the increase may have gone to much lower CTR keywords.

 

Check if the increase in impressions on ALL keywords his risen and by what proportion.

 

It helps if you group high CTR terms together (8-10%) then (6-7%) etc if you want to do this quickly and compare 2 date ranges, one before and one after the increase.

 

This could help give you some insight.

Re: Increased budget results in CTR nosediving

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Thank you guys, both very helpful.

 

I've tried to weed out most of my broad match keywords, and am on manual CPC. But you both have given me fresh thoughts to go away and test/examine.

 

Would it be useful, do you think, to report my results to the forum?

 

Thanks for your help, let the testing begin Smiley Happy

Re: Increased budget results in CTR nosediving

Top Contributor
# 5
Top Contributor

Try to implement our suggestions and come back and report the results...

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: Increased budget results in CTR nosediving

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

INTERIM RESULTS

 

Took the top dozen or so keywords (Best CTR over a thirty day period) and created a new campaign for them. Paused the same keywords in the old campaign. Increased the budget by 50%, split 66.66% new campaign, 33.33% old campaign.

Kept the match options exactly the same for the 'new' keywords to ensure like for like comparisons.

 

Expected result: New campaign CTR above average. Old campaign CTR to drop.

 

Current result: New campaign CTR fallen dramatically. Old campaign CTR dramatically increased above previous average.

 

Impressions on the new campaign have risen considerably, indicating that when they were in the 'old' campaign, opportunities to display were being lost. So, were they really my bestperforming keywords or, when displayed to their full potential, just average? That is obviously a hypothetical question...

 

I am astonished that it is this difficult to give more money to Google!

 

What next? I am thinking of taking the best performing keyword of all time and putting it into its own campaign. Give it a fairly generous budget and see what the 'true' CTR is. The idea is that it will trigger ads to close to 100% of potential exposure and give me a benchmark CTR.

 


Any more thoughts would be welcomed.

Re: Increased budget results in CTR nosediving

Top Contributor
# 7
Top Contributor

@RecursiveS;

Somewhat strange I should say....Can't comment much without looking deeper into the account...

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer’

Re: Increased budget results in CTR nosediving

Top Contributor
# 8
Top Contributor

Hello.

 

Look at those top performing keywords then and now, segmented by Top vs. Other.

Also look at Dimensions -> Hour of day.

 

Your increased budget qualified you for more auctions during the day. If you've started appearing in more auctions during more competitive day intervals, your ads may have shown in lower positions more often, and lower positions are usually associated with lower CTR as well.

 

If you find hours when your position and CTR both drop, you may need to adjust your bids for those intervals. Many seasoned advertisers have noticed what times of day are more inclined to yield good results and they adjust their bidding accordingly. Or use CPA bidding and the system does it for them.

Calin Sandici, AdWords Top Contributor | Find me on: Google+ | Twitter | LinkedIn | myBlog
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Re: Increased budget results in CTR nosediving

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

Thank you.

 

I'll try to do that analysis and see what transpires.

 

Although wonderful, it does seem to show what a fickle and perverse friend adwords can be!

 

Cheers all, will report later.

Re: Increased budget results in CTR nosediving

Follower ✭ ☆ ☆
# 10
Follower ✭ ☆ ☆

@ RecursiveS

 

I have faced this scenario many times when an account's performance has plateau.

 

 

Throwing more $$$ will not guaranteed positive outcome even account is converting at a %.

 

Before you start doing expansion or any major changes, I suggest making a backup (i learned the hard way).

 

Also, I think you're looking at this from the wrong angle (or metric).

 

CTR is an important metric but campaign's success isn't measured by it, conversion metrics are.

 

If you spend "X" extra $$  = impression increased but CTR decreased = BUT conversion ALSO increased (i think you're donig just fine)

 

If you must increase your campaign performance w/ budget, you can expand your keywords portfolio by adding modifiers (head, torso, tail, geo).

 

This way you don't mess up your original campaign and still gain addiitional market reach.

 

Hope this helps...

 

-vt