Campaign Budget Optimization: Best Practices

Budgets are vital pieces of Google Ads spending. Without it, you’d be throwing money to the wind. A good understanding of the role of campaign budget optimization will help you get the most out of your Google Ads.

With Google Ads, you can create a daily budget for your campaign. And the budget should stipulate the amount you’re willing to spend per day. In this guide, you’d discover what Google Ads budgets are, and also discover how to go about your campaign budget optimization.

What is Campaign Budget Optimization?

Google campaign budget optimization involves getting the most out of your advertising campaigns even as you minimize your spending. With campaign budget optimization, you get to easily maximize your advertising budget. This way, you’d have an improved campaign performance and also generate the most results.

How Do Google Ads Campaign Budgets Work?

You can either set a shared budget or a daily budget with your Google Ads campaign. Before your daily budget, you’ve got to factor in the average amount you’re willing to spend per day.

However, if you want to figure out your monthly ad budget, you need to multiply your average daily spend by 30.4.

What Are the Best Practices for Campaign Budget Optimization?

Campaign budget optimization is a sure way to get the most out of your Google campaign. Here are things to help you lower costs, boost your campaign performance, and pretty much stretch your budget.

1. Choose Your Keywords Wisely:

The average cost per click (CPC) of your preferred keywords can significantly impact your Google Ads budget. For instance, if you’re managing a campaign for a home cleaning company, you can opt to target two different types of keywords.

The first type could be keywords like “home cleaners”, “house cleaning”, and “cleaning service”. And the average CPC for these keywords may be $1.50. The second type of keywords could be long-tail keywords like “green cleaning products”, “move-out cleaning”, and “apartment cleaning service” with $2.50 as the average CPC.

Let’s say the number of clicks generated by these two types of keywords is the same, the average CPC impacts the keywords in the following ways:

• Keywords with a $1.50 average CPC: Let’s say you have a $105 daily budget, you’d be getting about 70 clicks per day ($105/$1.50 per click). Your total budget in a month should be $3,150 ($105 per day x 30 days).
• Keywords with $2.50 average CPC: If you use the same $105 daily budget for the second type of keywords, you’d be getting about 42 clicks per day ($105/$2.50 per click). Your total budget in a month would be $3,150. However, you’d be generating fewer clicks and conversions when compared to the first type of keywords.

You see, the average CPC greatly impacts the overall performance of your campaign. As a business person, there has to be a balance between broad and specific keywords. This way, you get to maximize your budget and generate the most results you can get.

2. Optimize Quality Score:

Quality score is a Google Ads metric that helps in evaluating the quality and relevance of your landing pages, keywords, and ads. It’s a vital metric used in identifying your cost per click (CPC) and ad rank.

A high-quality score typically boosts your ad’s position in search engine result pages and lowers your CPC. Low-quality score, on the other hand, reduces your ad’s visibility and increases your CPC.

To get a high-quality score, your ads have to be relevant to your landing pages and keywords. And if everything is properly set up, then you’d spend less during your Google campaigns.

3. Leverage Remarketing Campaigns:

Remarketing involves targeting people who have already interacted with your brand. Interaction with your brand could be visiting your website, abandoning shopping carts on your online store, or anything in between.

Interaction with your brand signals a high-interest level — and these prospects are more likely to be converted into loyal paying customers.

The CPC of remarketing campaigns is usually lower than that of others. After all, remarketing campaigns target specific, small audience groups. Regardless of how small your budget is, remarketing helps you reach more people and possibly convert them.

4. Focus On Bidding Strategy:

Your bidding strategy should be dependent on your target audience and your campaign goals. Here are some common bidding strategies you should consider:

• Target CPA (Cost per Acquisition)
• Target ROAS (Return on Ads Spend)
• Manual CPC (Cost per Click).

Any of these bidding strategies will help you get the most returns on your investment.

5. Using Shared Budget:

With a shared budget, your budget gets to be streamlined across all campaigns. This way, an underutilized budget in one campaign will be reallocated to a budget-capped campaign. Here are some benefits of the shared budget model:

• Increased Efficiency: Shared budget eliminates the time spent in manually reallocating and managing budgets between two or more campaigns. With a shared budget, all allocations get to be automated across multiple campaigns.
• Maximize Performance and ROI: A combo of portfolio bid strategies and shared budget helps maximize your returns on investment and campaign performance.

6. Use Bid Simulator:

Bid simulator tools help you figure out what will happen to your campaign if you’re to change metrics like:

• CPA target
• ROAS target
• Average daily budget.

With Google Ads bids simulators, you can easily know how various bids will change your ads performance. Let’s say you’re using a max. CPC bid $1 for your keyword, the simulators will help you see how your campaign will perform if you’re to adjust your bidding to $1.50 or $0.75.

The bid simulator shows you the estimated impressions, clicks, conversions, conversion value, and cost when you adjust your bidding.

This way, you’d have a clear view of what your campaigns will look like when you change your bidding. In the long run, the bid simulators help you maximize your results with minimal effort.

How to Analyze Your Campaign Budget?

When you’re running campaigns on a limited budget, you need to keep a close eye on your cost consumption. This way, you’d lessen the chances of losing money.

Let’s say you’re running about six campaigns simultaneously with a $200 daily budget for each campaign, you’d need to keep a close eye on all six campaigns. If not, you’d miss the opportunity to optimize your campaign and possibly maximize your Google Ads campaign returns.

Aside from generating the most returns, keeping a close eye on your campaigns will help you eliminate waste. If each campaign wastes about $20 per day.

The wastage from all six campaigns will be about $120 per day — and that could easily amount to $3,600 per month. To avoid such situations, you need to opt for tools like PPC Signal.

To get started, you need to connect the PPC Signal to your Google account. And your campaign has to be active for at least 7 days. This way, enough data would have been gathered within the 7 days time frame. After that, you get to monitor your campaign with the tool.

Here’s what the PPC Signal dashboard looks like.

To explore your signals, click on the “Explore” button.

Keep monitoring your campaigns and fix any anomalies (if you find any).

FAQs:

How to Use Google Campaign Budget Optimization?

The campaign budget option is found in the Ads manager section. If you turn it on at the campaign level, it becomes available for all your objectives.

Whether your primary objective is to generate leads, boost conversions, or drive traffic, campaign budget optimization will help you do just that. You can either opt for the daily or lifetime budget. You also get the option of choosing your bidding strategy.

What is the Budget for a Google Ads Campaign?

As an amateur, you can go with a daily budget of $10 to $50. If you opt for a new budget, you’d have to keep a close eye on your campaign to see how it’s performing. If you’re running multiple campaigns, you’re better off going for a shared budget.

What is a Good Monthly Budget for a Campaign?

Google Ads budgets are somewhat flexible. Your Google Ads budget will be dependent on factors like:

• Your target audience
• Competition
• Campaign goals
• Industry

There are instances where you’d experience lots of success even on a small budget. However, there are also cases where you’d have to invest a little more if you want to be successful with your Google Ads.

How Do I Budget a Google Campaign?

Here are easy steps to take when budgeting your Google campaign.

• Sign in to a Google Ads account
• Navigate to your campaigns and ​select the campaign you’d like to edit
• On the ​”Budget” column, click on the pencil icon
• Enter your daily budget
• Click on the “Save” button.

Wrap Up:

If you’re like most business owners, you’re looking to increase your visibility, drive more traffic to your website, and grow your brand awareness. Well, Google Ads will help you achieve all these. The best part, you can generate enough conversions even on a small budget.

Nowadays, many companies are relying more on PPC advertising. However, having a budget that helps you generate the most conversions seems to be an issue — and that’s why you must be willing to stretch your campaign budget.

To optimize your campaign, you need to consider easy steps like:

• Opting for lower CPC keywords
• Figuring out the best bidding strategy and using it.

Since Google Ads doesn’t rely on a single factor, you have to keep monitoring your campaign even after you’ve successfully launched it. This way, you’d quickly figure out any anomaly (if there are any) — and fix it. Speaking of monitoring your campaign, you’d need a tool like the PPC Signal.

Now you know what campaign budget optimization is, how will you optimize your next Google Ads campaign?