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Say your budget was cut in half for the year, what steps do you take to maximize your budget?

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# 1
Follower ✭ ☆ ☆

Hypothetically speaking, if your Adwords budget was reduced by 50% for the year of 2017, what would you do to ensure that you are spending your money optimally, and wisely?

 

How can you be more creative with the features and targeting abilities available to us?

 

Thoughts include:

  • Scrutinizing your negatives list (and add more/more frequently)
  • Applying negative audiences
  • Focusing on branded keyword campaigns
  • Spend on proven generic keyword campaigns
  • Optimize device/location/day parting bids
  • Utilize RLSA to its fullest potential

Any other things you would do/consider if you were asked to do more, with less?

2 Expert replyverified_user

Say your budget was cut in half for the year, what steps do you take to maximize your budget?

Top Contributor
# 2
Top Contributor

Definitely you should pause campaigns - how many and which network? - This question depends on the client's  / business strategy for 2017

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Say your budget was cut in half for the year, what steps do you take to maximize your budget?

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# 3
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How can you explain and set expectations for how their lead volumes and performance will be affected?

 

Assume the client's business strategy remains the same, lead generation for opportunity creation, at a profitable cost.

Say your budget was cut in half for the year, what steps do you take to maximize your budget?

Top Contributor
# 4
Top Contributor

Don't forget new ad copy.

 

If you can improve CTR from say 3% to 4%, your costs will (all other things being equal) reduce by 1/3.

 

Usually, if you reduce budget by 50% by taking it from the worst performers in your account, the average cost per conversion will improve. This is especially the case if they are already brand bidding. So the client's ROI should improve.

 

Say your budget was cut in half for the year, what steps do you take to maximize your budget?

Top Contributor
# 5
Top Contributor

@Jean Philippe R;

Honestly, without a full audit of the current account, I would refrain from  making any suggestions. Especially  if it's a high spend account...

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Say your budget was cut in half for the year, what steps do you take to maximize your budget?

Top Contributor
# 6
Top Contributor

I agree with Moshe, all we can do is guess or make very generalised recommendations. Your initial thoughts are sound and you seem to have a good enough grasp on what to do.

 

Say your budget was cut in half for the year, what steps do you take to maximize your budget?

Badged Google Partner
# 7
Badged Google Partner

"How can you explain and set expectations for how their lead volumes and performance will be affected?"

 

You have to take a holistic approach, using all the data available. AdWords is not necessarily a stand alone channel. If you can get into the analytics data, and do some customer acquisition analysis, you may find evidence that reducing the AdWords budget actually leads to declines in many other areas. Last click attribution may not tell the whole story. Sometimes the funnel is apparent, sometimes it takes a bit of a leap of faith, and educated assumptions to determine where the leads/revenue is actually being generated.

 

Having the mindset that the budget for the entire year will be set ahead of time is also not the most effective way to plan your advertising budget. If you halve your adbuy, and your revenue (and profits) decrease by more than you "save" on the advertising, it's foolish to continue that approach. How much money are you "saving" if overall revenues decline to the point where the business fails?

 

In terms of account management, always start from the top down. If your brand terms generate the most profit for the least cost, and you only have enough budget to cover your brand, then make sure to protect your brand! If you allow a competitor to come into the marketplace and poach your most profitable returning customers (who were not entering through organic sources anyway), then your revenues will continue to decline. It may seem counter-intuitive to executives, as the goal of advertising is to increase market share and generate more new customers - But, if you're hemorrhaging revenue, you have to find some way to stop the bleeding, and stabilize returns.

 

At the end of the day, money talks. Smiley Happy You are going to have to find a way to show the decision makers that they are actually losing more money than they are saving by reducing the advertising budget. In your analysis you may find that some of the adbuy is hard to justify, and perhaps a slight, temporary reduction may help to re-focus your efforts. However, the longer you continue to leave money on the table, and the more customers you lose to competitors, the more difficult it is to recover if/when there is an authorized budget increase. 

Tom