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Projecting Budget Using Impression Share

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi everyone,

 

I just launched a few campaigns a little less than a week ago, so I don't have a ton of data, but from what I can see so far our campaigns are running out of budget fairly early in the day and we have a large amount of impression share lost to budget.

 

How can I calculate how much my campaigns are able spend in a day using that impression share lost to budget number? (of course this is all else being equal, so no creative, cpc, or other changes being made the account).

 

Any help would be greatly appreciated!

 

3 Expert replyverified_user

Re: Projecting Budget Using Impression Share

Top Contributor
# 2
Top Contributor

Hi @Carmen S;

This would be hard... Smiley Surprised

A better way would be to click on the "graph icon" next to the "limited by budget"  message  and  to check the budget system would recommend based on past campaign  performances.

 

Read more about "How to find your campaign's recommended budget"

 

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Projecting Budget Using Impression Share

Rising Star
# 3
Rising Star

@Carmen S

 

A little algebra will help you with a rough estimation. In addition to the "all else being equal" comment you smartly made, don't forget that there are other variables which you cannot control outside of the Adwords platform. The amount of time that has passed may also not be sufficient here.


Take your impressions and divide it by the lost impression share percentage converted to a decimal. This will give you the total amount of potential impressions that were available to you during the time period you are sampling. Now multiply that number by your avg CTR also converted to decimal. This will be the potential amount of clicks you could have received. Now multiply that number by your average CPC. This will be the potential budget you can spend.

Again... this is a very rough estimation... I'd almost call it a "guesstimation."

Re: Projecting Budget Using Impression Share

Rising Star
# 4
Rising Star
Hi Carmen,

I would go with Davids way forward here. As he mentioned, it will be a rough estimate but I have utilized the same for almost all my campaigns to get the budget estimates and almost all of them have been fairly accurate.

I would recommend just rounding the estimate off as much as possible and if possible add in another 10-15% cost on the estimate, this way you can be sure that if nothing, you are not going to fall short on the amount needed to run a successful campaign. This extra 10-15% will also help you cover for the unknown variables affecting the daily spends.

Hope this Helps!

Cheers
Shashank
Cheers,
Shashank Singh, AdWords Rising Star |
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Re: Projecting Budget Using Impression Share

Top Contributor
# 5
Top Contributor

>>"Keep in mind that impression share is based on an estimate of when your ad was competitive in the auction, and small fluctuations over time don’t necessarily indicate that action is needed. Changes to your bids, Quality Scores or Google's ad systems may change the set of auctions in which the system estimates you were competitive.

 

Impression share is quite a broad estimation (as Google hints in a carefully phrased language...)  I wouldn't rely it when  recommends a client the  (real money) budget the client should allocate,  while at the same time the system offers a much more accurate tool to estimate a daily  budget.

 

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Re: Projecting Budget Using Impression Share

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

Thank you everyone for your replies! If you guys wouldn't suggest impression share to calculate incremental budget potential - what would you use when a client asks you "how much more can I spend in paid search?" Of course, I realize that at a certain point efficiency will be lost, but all things equal once again.

 

I will of course be checking out the estimation tool - but I'd love to hear other ways to calculate this if you were in that position.

Re: Projecting Budget Using Impression Share

Rising Star
# 7
Rising Star

@Carmen S

 

Those two are pretty much it.

Re: Projecting Budget Using Impression Share

Rising Star
# 8
Rising Star
Hi Carmen,

I would take the impression share route any day over other tool as in my personal experience it works the best. Do give it a try and let us know how it goes.

Hope this Helps!

Cheers
Shashank
Cheers,
Shashank Singh, AdWords Rising Star |
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Re: Projecting Budget Using Impression Share

[ Edited ]
Explorer ✭ ✭ ☆
# 9
Explorer ✭ ✭ ☆

Hi Carmen,

 

I know this answer, I use it for my client, whose only important objective is getting an 100% IS. Now here are a few things to consider before you look at impression shares -

1. Exact IS is not always going to be equal to IS

2. IS lost due to budget is not always going to be similar if you have optimized the account (I will get into details on this)

3. Some seasonal holidays and some exiciting months can lead to skew IS.

4.  Arithmetic calculations are going to give you a lot of different numbers.

5. Using Shared Budgets will lead to different results as opposed to Individual Budgets.

 

Now lets get into more detail -

1. Exact IS for a campaign/adgroup/keyword will always differ when compared to IS. Exact IS will always show the IS for your keyword only. Whereas the IS will show for all the search queries around it. It will differ, will be explaining it in point 2 about it.

 

So what should you take then for your client's objectives - Exact IS or IS? Remember i am not talking about exact match but phrase, broad and bmm. If you take exact match IS as your objective then your overall budget will be lower compared to IS. So the best way is taking the median of both the Exact IS and IS.

 

Example - if you have an Exact IS of 98% and IS of 57%, then take the median IS to be 77.5% Then calculate your budget.

 

2. IS lost due to budget is not always going to be similar because of optimization. Now think of this IS will constitute of all the search queries which are accrued to your keyword. If you remove some irrelevant search queries, your impressions fall down, so your impression share might increase. This is because your total available impressions will fall down. But there is a problem which I have faced a lot, i cannot see a lot of queries because they are shown as other search queries in the tab. I dont have analytics but another tool for which my client cannot give access, so what I did was i optimized based on the keyword planner tool, adding negatives to all irrelevant terms. This created a scenario for me which was not expected - My IS increased and improved overall, due to optimization, but I was not able to spend the whole budget.

 

Now if you see that some keywords dont convert and you pause them or delete them (never delete though to keep the history), they will stop accruing impressions as well as contributing to the overall IS. But the IS improved and again i start underspending even with 100% IS.

The other scenario is, if i add more keywords, then my given budget might not suffice them, based on the type of keywords (generic, long tails can be sorted out). So it also depends on your optimization strategy.

What you can do - Make it clear to the client that you might underspend or overspend by 20%, and it also depends on a lot of optimization.

 

3. Seasons create a lot of difference as well. Nov-Dec is the period where your overall budget and IS goes for a toss. Remember this that you cannot justify for an ecommerce site the kind of IS you might see during this period. But a lot of B2B industries slow down during this period. An example of seasons would be - Christmas, New Year, Diwali, Black Friday & Cyber Monday. There might be many more seasons which might differ from country to country and city to city as well.

So take a note of this. Keep a lower budget if its B2B and keep a higher one if its B2C.

 

4. Your calculations are going to go for a toss if you do it on a month on month level. I would suggest you for a Quarterly budget planning. This can help you spend with a leverage as well as support you with mitigating risks of sitting on budgets every month.

This is how i calculate a few things -

Total Available Impressions=Impr/Impr Share

You can then make your calculations based on all these numbers.

What you can do - Keep a 20% leverage and inform client that its a 20% increase in budget to manage overpends if necesarry.

 

5. Shared budgets behave different. They can lead to IS lost due to rank, which would be your bids. I see the IS lost due to rank coming down if I apply individual budgets. But keep in mind both of them have their own advantages. I always build a budget planner based on Keyword Themes, not on the basis of Campaigns. If your keyword theme improves significantly due to higher conversions, you might have to shift budgets from other non performing or moderately performing themes. What you can do - ask the client about this from the start, you might shift budgets based on performance.

 

Always remember - Never project budgets based on campaigns, but on Themes. you cannot project budgets based on campaigns, it can be a humongous task. Use both the budget management strategies shared budgets as well as individual budgets.

 

Hope this helps!

 

Re: Projecting Budget Using Impression Share

Visitor ✭ ✭ ✭
# 10
Visitor ✭ ✭ ✭
Thank you everyone for your replies - Seriously, it was a huge help! I really appreciate it! Smiley Happy