So you're getting a decent ROAS (Return On Ad Spend) on a campaign and want to dial things up a bit. It might seem like a no-brainer to just double your budget, but unfortunately it's not that simple and this is a mistake many PPC managers make. But with a few tweaks to the approach, you can still get to the same end result.
But before you you do, let's take a step back and talk about why simply boosting your budget might not be the best move.
Picture this: you crank up the budget, your ads start running, and before you know it, your budget for the day is all used up. No more ads for the rest of the day. Ouch!
Suddenly ramping up your budget can make your campaign performance a bit wonky. It's like the system needs a moment to catch its breath and figure out what's going on. Increasing budget more gradually can help you get a more accurate measure of campaign performance, so you can see what's working well, and the areas that need attention.
Going big too soon might actually lead to some sloppy spending. Your campaign might start chasing after broader keywords and audiences that aren't as engaged with what you're offering. This can hike up your costs without delivering results.
A budget boost could put you in a race where the finish line isn't always rewarding. More money might attract more clicks, but not necessarily from the right people.
In some industries, cranking up the budget might make your competition increase their budgets as well. This could increase the cost per click and make it harder to stay in the top positions.
Imagine showing your ads to the same crowd over and over again. Your ads may end up being treated like background noise – this is called ad fatigue. Suddenly, your engagement and conversions stall.
If things don't go as planned with the budget increase, you might find yourself in a tight spot. Trying to dial the budget back down might be harder than you think.
If you're also tweaking other parts of your campaign like ad wording or your target audiences, it can be tough to tell what is working and what is not. High-speed budget changes could muddy the waters further.
So, while beefing up your Google Ads budget is exciting, increasing the budgets by more than 50% in the blink of an eye might give you more chills than thrills.
I have seen this occur many times with negative results. Campaign budgets were doubled, and within a few days, conversion rates would drop while CPCs would keep climbing. Clients would then pull back budgets as they saw the results were not ideal, but that just caused more issues as now the CPCs were higher and less traffic was coming into the campaign. The result: lower performance than before the initial large budget increase.
Instead, I'd recommend increasing your budget by no more than 15% at once - this also stops the algorithms from going back into a learning phase. Increase by another 15% the following week if all is looking peachy. Do this again the following week, and before you know it, you have your 50% increase.
When it comes to managing your Google Ads budget, it's oten smoother to take it slow, watch your performance closely, and tweak as needed to stay on the road to campaign success. 🚀