Will Increasing Adwords Budget Generate More Sales?
If I have an adwords budget of $400 per day and make $2,000 per day in sales from the ads, assuming that I make no changes to adwords, if I double my adwords budget to $800 per day will my sales results likely double to $4,000? Or may I have maxed out my clicks anyway at $400 so an increased budget won't make a difference?
I am sorry but there is no yes or no answer to this question. There are several factors to be considered here
1. What is your impression share for your top performing keywords if its already at 100% I dont think budget change will make any significant change to your sales
2. If you are running display campaigns then there is no guarantee that your sales will increase as you are not targeting intent of the buyer
3. You have to dig deeper and find out which are performing keywords and how you can increase that bandwidth
I would suggest you should try adwords experiments and try out diffrent set up budgets as well bidding
For more details please check http://support.google.com/adwords/bin/answer.py?hl=en&answer=2385204
Hope this helps
Re: Will Increasing Adwords Budget Generate More Sales?
If the budget is not sufficient for the day, Google displays your ads occassionally and you might lose some clicks. If this is not the case and if there is no change in the account, increasing the budget will not result in additional sales.
If the competition increases, required budget might be more and result in less clicks/impressions. Then you will need toincrease the budget.
As theniks said, if your impression share is at 100% it won't make a difference and you should look at other ways to get more traffic. If it's at 50% and it's lost impression share due to budget not rank, then yes theoretically your sales could double without doing anything else. Most likely your lost impression share is a combination of budget and rank so you might need to work on your quality scores and/or bids in addition to increasing your budget to get closer to 100% impression share.
More on impression share here: http://support.google.com/adwords/bin/answer.py?hl=en&answer=2472710&from=52760&rd=1
Hope this helps,