Yuma 4×4

Media and Communications

How to Reassess Your Google AdWords Budget

How to Reassess Your Google AdWords Budget

Hello, everybody. My name is Garrett Mehrguth. I am the CEO and co-founder
of Directive Consulting. And today we’re going to talk
about how to assess your Google adwords budget. Now, there’s a lot of tools
out there for adwords budget calculators. There’s a lot of information
on the internet regarding how you should determine
your Google adwords budget. But what there isn’t
a lot of information on where we see a
large problem is how to reassess your
Google AdWords budget. In other words, how do
you rethink your PPC spend after you’ve
started to do it. And that’s what
we’re going to talk about today on now one of
the common things we see is someone goes into
an AdWords campaign, either for the first time. And they’re really
trying to decide, OK. How much do we need to spend. But then there’s always
that really difficult kind of underlying conversation of
how much will we actually get approved to spend. Right So it’s a fine
line between oftentimes how much you need to
spend and how much you’re approved to spend. It’s really important to
understand those differences when you go into it. Now what you don’t
know going into it is any of the real information. And so when you’re reassessing
your adwords budget, there’s some things you
really need to look at. So let’s take the example
of a couple situations we see very often here when
we’re re-evaluating your budget first you’ve launched the campaign
you’re happy with some of the conversions. But you want more. Now the number one
thing you should be asking either your
internal team or your agency is what’s my search
impression share. How much of it is
lost for budget and how much has it lost to rank. If you’re
losing it to rank that’s usually something
that’s somewhat in your control and you can take that search
impression share and increase it by creating
more focus campaigns, more relevant campaigns
and better campaigns. That’s more of an hours and
time thing than a budget thing. Now other times your
search impression share might be lost to budget
that’s due to your spend. That traditionally
means that the cost per click for a set of
keywords in a budget is greater than
the daily budget that you have set in AdWords. So that means that
you could have a campaign as driving
conversions at the cost per conversion you desire. But you’re not showing
up all the time. One of the simplest things you
can do to reassess your budget is simply increase
your daily budgets on your most
profitable campaigns and allow yourself to grow. This is a really
important thing. And here’s why now the
reason this is so important is if you have such a rigid
framework for your budget, you can’t make the proper
decisions to actually grow your volume of marketing
qualified leads. So here’s what I see
happen all the time. People start this PPC campaign. And they say, look, we
want to grow with you. This is where we can start. But we know once we get
results, we can reassess our budget. But the honest truth is in
the last 4 and 1/2 years, I’ve seen probably less
than 5% of our clients actually reassess budgets
when they did get results. And that’s a
problem, because what you end up doing is
instead of trying to grow your campaigns around and search impression share. and make sure you’re
always showing up for your most profitable
words you can do that. But then you lose all
your experimentation. So ideally what you
want to be able to do is max out your best
performing campaigns but then still
have enough budget left to test new campaigns
around new keywords new positions in the funnel. New types of
campaigns maybe going into different channels Bing,
paid social, LinkedIn, Facebook even maybe testing display. Now we haven’t had a
lot of success here. We’ve talked about that before
around display campaigns in comparison to search for
B2B but you could at least test for your individual business
because nothing’s ever for sure. But you can’t test if you
don’t have the ability to reassess your budget. And that’s critical. See you next time,
that’s really important to reassess budgets and
ethics kind of moment that you might really
want to think through. If you have a timeline that’s
shorter than your budget actually allows. Perfect example: you want to get
results in the first 90 days of starting your
AdWords campaigns you’ve never done it before. You want to launch to go back to
the executive team, your boss, or someone else who’s boss
in the next quarter and say, here’s the investment we made. Here’s what we got back from. The problem is
usually when people do this they start with
really small budget. It’s not been proven yet. This is a test campaign. We want to prove it out. The problem is
sometimes your test campaign budget doesn’t allow
for the clicks necessary to get to the optimizations that
allows your cost per aquisition to go where it needs to be for
the test to ever be successful. And so really what you’ve done. You’ve created a situation
where the most likely outcome is failure and you never
want that to be the case. So if you’re in a spot
where your budget is too small then
expand your timeline know that you need at least
100 clicks on a keyword before you really feel that
it’s statistically significant to turn it on or off. And because of that, if
the clicks to get to 100 are more than your budget,
then you won’t get there. in enough time to turn the keywords off to lower your cost per acquisition to make the campaigns the success you wanted them to be. So if you don’t if you
have a timeline that’s shorter than your
budget allows for you to actually have success. That’s the time you’re
going to really want to reassess a budget even
if you messed up at first, it’s better to go back to
your team or to your agency and say, OK, guys, we need
to reassess this budget to actually get to our
goals and that’s OK to do. And the last time that
really important to reassess your budgets is sometimes the
campaigns just aren’t working. And that’s a reality, not
always does every campaign work. This is a great opportunity
to reassess a budget, because maybe, just maybe,
the campaign needs more time and you don’t need to
totally shut it off. But you can reassess
your budget. In other words, maybe you
don’t have the money right now to experiment anymore. So you don’t want to run alpha
and beta campaign where alpha is your top form of campaigns. You know those work those
have 100 percent search impression share and
your beta campaigns are 50% Maybe you just
can’t do any beta campaigns. Maybe cash is tight at the firm. Maybe had a bad quarter
for whatever reason. But sometimes lowering
spend is a lot better than pausing it entirely. And so really look
at then say, OK, is there any part of what
we’ve done that is salvageable that we can continue to
do instead of just pausing the entire thing. So not every budget
needs to be reassessed to grow some need to be
reassessed to diminish but to do. So it takes a really fine
amount of expertise and analysis to make sure that you don’t
sabotage all your efforts. I guess sometimes,
especially with paid search and advertising in general. There’s sometimes
indirect benefits to the campaigns you’re
running and you might not be giving those campaigns
all the credit they deserve. This is a great way to look
at multi-channel attribution if you’re using a tool
like Bizible like we do for ourselves or if you’re
looking even at your Google Analytics, you’re looking
at multi-touch attribution. It’s really important,
though, that you fully understand before completely
pausing or diminishing your budget and the value that it could
be indirectly providing some of the other
campaigns. Everybody wants direct attributes. But sometimes it’s
just not a reality. And that’s OK if
you don’t have it, it’s better to reassess it
maybe pump it down a little bit instead of completely
turning it off seeing what happens when you do that. And then once again
reassessing your budget based offers
smaller spend to see if you still have your goals. Hopefully this video has been
informational and helpful to give you a new framework for
reassessing budgets and really if your campaigns are doing
well, instead of trying to move things around. It’s always worth
it to try to grow the budget you’re doing well. It makes you look good
makes your agency look good and it helps your
overall objectives. If campaigns are underperforming
it’s OK to step back, it’s OK to slow down. It’s a wait. It’s OK to cut away the
fat, but you should always be reassessing your
budgets stagnant. Budgets are one of the hardest
things that in-house marketers are dealing with
right now because they don’t have the freedom
to adjust to the results they’re gathering. Make sure you have
a flexible budget. So you can reassess on the
fly. As always subscribe to our channel and feel free
to leave a comment below. Thanks

Leave comment

Your email address will not be published. Required fields are marked with *.