Beginner’s Guide to Adwords Part 2: Streamlining Your Ad Budget

>>>Beginner’s Guide to Adwords Part 2: Streamlining Your Ad Budget
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Beginner’s Guide to Adwords Part 2: Streamlining Your Ad Budget

“This is the second out of a five part series trying to teach SME business owners on Google’s Adwords Advertising, understanding terms, processes and tips on how to efficiently do ad campaigns without blowing your entire budget. Find the other parts in the links at the end of the article.”

Budgeting is a chore nobody likes doing. Micromanaging your finances is such a burden on a personal level and even on a business level that only a few people willingly take care of it. Imagine the hassle of doing the budget for your Adwords campaign.

Creating campaigns that can represent either business growth or burning finances away becomes bog standard. In this regard, you would want to maximise your spending to what works.


Understanding Basic Adword Rules

The first rule of thumb when trying to create budgets is to understand that there’s a monthly budget and there’s a daily budget. How much you’re willing to spend per day and how Google uses your money depends entirely on your monthly budget divided by 30.4 days.

For example, you have a budget of $608 per month. $608 / 30.4 days = $20/day

Spending changes depending on the time of the day and the frequency of changes that you do on your budget. Typically, ads are charged on a 50-50 basis – 50% in the first half of the day and 50% on the latter half. This mostly adjusts depending on the demand for your ads, moving to possibly 70% by the first half of the day.

Adjusting Your Advertising Budget

When changing your budget, Google tries to compensate for low traffic days with more spending on high traffic days, so you might see that you’ll exceed your daily budget but that’s due to fluctuations in traffic. You can expect Adwords to advertise only within the parameters that you have set for your monthlies, not your dailies.

If you change your budget somewhere after the start of the month, Google adjusts this change on the remaining days for that month.

For example, your budget from March 1 to 10 is $5. If you increase this to $10 on 11th onwards, you will be charged [$5 x 10 days (March 1-10)] + [$10 x 21 days (March 11-31)] = $260

Changing variables on your campaigns like the end dates, delivery mode and time zones are equivalent to budget changes.

Formulating Effective Campaigns Efficiently


If you want an effective advertising campaign, consider your cost-per-click (CPC) and see how many clicks can your budget support. You would want to use CPC as a starting point on how much you should set aside for a daily budget.

Use tools such as SEMRush and other keyword tools to determine the cost to search volume that you get from the keywords. You would want to utilise your Keyword Planner to find out keywords within your landing pages and extract keywords that are supposed to have more volume than they are valued.

In addition, you would not want to consider CPC within the context of simply low competition and high traffic. Think about the commercial intent of the keywords that you got. You want keywords that are used when people are buying, not when they are looking for information or resources.

These keywords typically include phrases like “digital marketing agencies Brisbane”, which contains the [industry] + [location] combination and “advertising agency near me”, which states intent to visit or convert. There’s a comprehensive guide Backlinko provides for this that you may want to give a read.

Remember, you’re not earning any money from 100,000 visits, but rather who buys your product and who converts. There’s a number of key performance indicators that you can use from your data to measure what works, but a great combination of high volume + low competition + real commercial intent goes a long way beyond what the KPIs can measure.

What PPC Keywords Should You Be Spending On?


When allocating budget for keywords, the smart and most sensible way to do things is to invest on your top performing keywords. These are the short phrase keywords that people search within your industry. Many industries, however, have these words cost the equivalent of selling your soul.

Wordstream listed the most expensive keywords in Australia and the one on top costs up to $46.25 to get. The issue, again, is that not all keywords have commercial intent in them. Whilst many of them are expensive because they have been converting, there’s an equal number of them as well that are either worthless or do not convert.

You would want to invest in a good balance of high intent keywords that have as much search volume as they can. This, obviously, depends on the industry that you are in.

Dominating Branded and Competitor Keywords

A neat trick to do is to use branded keywords and branded landing pages to your advantage. If you go and do a pay-per-click (PPC) search within your industry, who do you see? It’s the leading competitors most likely. Now try to search for their brands. Do you still see them on the PPC results?

If you don’t, you would want to do a branded keyword campaign using their brand keywords. If, for example, you want to do nab a branded PPC results spot from skylight manufacturer Velux, you would want to bid on their brand and aim to get their spot on the SERPs. Google typically discourages this by pricing branded keywords a bit higher, but if you think it’s worth the shot, take a look at the Adwords data. Make sure to create a landing page that is rich in the branding that your competition uses.

You would also, in defence, want to take your branded keywords and invest in advertising it. This is to secure the branded searches done for your name and prevent your competition from getting your possible traffic.

Budgeting 101: Ad Allocation for Adwords


Once you have campaigns running, you would want to allocate your budget more wisely. Cut off keywords that don’t have a lot of clicks and a lot of conversions. The ones that get impressions but never earn a click are terms that you would want to keep since they can provide opportunity to your business.

Keep them in play for a month or two, adjust your copy and improve it. Use the keywords more within your landing pages to improve quality rating. If they’re still not converting after all the adjustments that you do, leave them.

You would also want to make sure that your moneymaker keywords are in their own campaigns away from your top performers. This allows for you to focus the budget on what sells without hampering its performance with middling keywords that are eating away your budget. If you are about to do this, remove the weak performers away from the ad group, not the moneymakers.

The keyword budget should be like this, with top getting high priority:

  • Moneymakers
  • High-value, high-intent
  • Branded
  • Non-commercial
  • Competitor

These may change depending on the industry and niche, but this is a great general guide on how to allocate your money for maximum effect.

Considering Another Ad Strategy

You also would not just want to focus on Google’s platforms for your advertising. There are many other platforms that are viable to be used as a means of strong ad campaigns like Facebook, Instagram, Bing and LinkedIn are great options as well, depending on the type of product and service you offer.

Make sure to remarket your moneymaker ads every time and convince more people to convert. If you think the search network is not enough, expand into the other networks like the display and video campaign networks and use those for the general keywords that should do heavy-lifting, but always make sure to utilise the search network for commercial intent words.

On the next article, we will talk about Ad Groups, what it does for you and how you take advantage of it.

Part 1 – Beginner’s Guide to Google Adwords: What is PPC, Campaigns and Goal-Setting

Part 3 -Beginner’s Guide to Adwords Part 3: The What and Why of Google’s Ad Group 

Part 4 – Beginner’s Guide to Adwords Part 4: Choosing the Right Keywords to Use

Part 5 – Beginner’s Guide to Adwords Part 5: The Ad Copy and How To Make It Work

By | 2020-02-28T11:07:08+10:00 March 5th, 2018|Advertising|0 Comments

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