Anytime someone tells us that we would be benefited if we spent a little more money on something; as humans we are very skeptical. Take for example the car sales person trying to sell you on the extended warranty option for your car.
So when we find ourselves telling clients that it is time to “increase your adwords budget” we normally get some very natural skepticism. Because of this we thought it might be good to outline a number of reasons to increase your adword budget.
1. What Pond Are You Trying To Swim In & How Big Of A Fish Do You Want To Be
The truth of the matter is that industries differ. There are certain industries that are mature enough and there are enough big fish that in order to even make a ripple you need to have significant budget behind you. So if you find yourself in a highly competitive environment where some of your competitors are spending a lot of money on PPC (because they have found it to work) then you need to decide how big of a fish you want to be in your industry’s pond and increase your adwords budget accordingly.
2. Are You Only Fishing The Pond For a Few Hours Per Day
What most people don’t understand is that there are auctions running 24/7. So if you have enough budget to participate and win 100 out of the 1000 auctions on a daily basis – then you are only getting 10% impression share. This means that you are handing over business opportunities to your competition for the other 90% of the auctions you don’t participate in. Imagine going on a fishing trip with friends and only being able to fish for 15 minutes – while the rest of your friends could fish all day. What is the likely hood that you would have as much success as your friends? Now if you don’t have a big budget you can offset low impression share by setting up really targeted campaigns and going after the most relevant keywords and using [exact match]. Either way, if you find yourself limited by budget its probably time to increase your adwords budget.
3. Your A TadPol Aspiring To Be A Frog
Every business wants to be strong and growth is one of the best ways to achieve that. I haven’t met a business owner who isn’t interested in growing their business. However, investing in growth has its own set of risks. But you also don’t want to find yourself spending the same daily budget for years and years. This will inevitably lead to lost business and nobody wants that.
So, here are a couple of things to consider when you want to increase your adwords budget:
– How much total inventory (auctions) are available? What is your impression share?
– Is your Cost per Converted Click reasonable? Are you ok spending that type of money on a lead?
– Are there ways for you to refine or make your campaigns more relevant and targeted before increasing your adwords budget? Examples of this would be: Use of negative keywords? Match Types? Geographical restrictions? Ad scheduling?
Well, that is it for now. Bottom line is that you should never be afraid to spend more on your adwords campaigns if you are seeing the results you want to see.