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Missed Clicks Due to Budget

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

Hi

 

I am thinking about raising my budget. When I use the 'model & change budget' function it gives me a series of 'estimated daily clicks' & a graph showing how many clicks I got & what a budget change is estimated to give me. 

 

The two things don't seem to match though. The graph estimates that doubling my budget would give me about 40% more clicks on the days when my budget is spent. But the 'estimated number of clicks' column says it would  only result in one more click than I am currently getting.

 

Is the estimated number of clicks column averaging the number I missed over the period ?

 

If that's the case then I can see the benefit. Buts really not clear.

2 Expert replyverified_user

Re: missed clicks due to budget

Top Contributor
# 2
Top Contributor

Hello ;

As you correctly pointed out, this is only an estimate, based on statistical (data) performance of your campaign;

As with every statistical estimate, it has its margin of error (that Google does not reveal).

I would use this data with some caution.

 

-Moshe

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: missed clicks due to budget

Top Contributor
# 3
Top Contributor

Hi,

 

As with all businesses, you will reach a point of diminishing returns with AdWords. If you need to double your budget to get 40% more clicks, I'd say you have reached that point. Getting more clicks will cost you more and more.

 

It's ultimately a judgement call on your part. Is the extra traffic worth the extra expense? Keep in mind, Google and AdWords will make a lot of suggestions--not all of them are recommendations.

 

Best of Luck!

 

Pete

 

petebardo -- Deadhead doing AdWords

Re: missed clicks due to budget

[ Edited ]
Top Contributor
# 4
Top Contributor

Interesting point by Pete ( @petebardo );

I do not know if the system is that "smart" to "estimate" the point of diminishing return; but this is Google - you know....  Smiley Wink

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Accepted by MosheTLV (Top Contributor)
September 2015

Re: missed clicks due to budget

Top Contributor
# 5
Top Contributor

"I do not know if the system is that "smart" to "estimate" the point of diminishing return."

 

I'm not saying Google will show you where that point is, and it doesn't seem to be part of their system. But, if you review the data, you will find that point. I generally prefer my keywords bids not high enough to get all clicks because those last few clicks can cost quite a bit. I look at the bid estimator chart.

 

Let's say I get 40 clicks (over an undefined period of time) with a bid of $.50. The bid estimator tells me if I bid $.75 I can get one more click. In that case, generally, I will not increase the bid.

 

I take all Google "recommendations" with a grain of salt. The advertiser needs to make the hard decisions themselves, not the computer programmers at Google. That's really the point of my post.

 

Pete

 

 

petebardo -- Deadhead doing AdWords

Re: missed clicks due to budget

[ Edited ]
Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭

Thanks Pete Smiley Happy. Indeed it was of great help for the beginners like us. Don't spend every penny on the ads !.

Re: missed clicks due to budget

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# 7
Follower ✭ ✭ ☆
I wouldn't raise DOUBLE of my budget overnight. Plan out a 2 week session to ramp up spending about 5 to 10% a day. At any point when I see the increase in spending is worse off...i would know I reached the optimal budget.